CPI Card Group Inc. (NASDAQ:PMTS) Q4 2023 Earnings Call Transcript

John Lowe: Yes. So ECO is a great space for us. I mean, we started selling Eco into the market in 2019. We did that with one of the largest issuers in the U.S. We are, we believe, a leader in the eco-focus space in the U.S. selling more than 100 million cars. We don’t update the stats every single quarter, but into the U.S. over time. If you think of the large issuer base similar to what’s happened in the contactless transition, the largest of issuers move quickly. We’ve seen great success in that space. And now what we’re doing, one of our big goals in ’24 is to push and penetrate within our small to medium issuer base. And just to keep in mind, if you look at our debit and credit segment broadly, the majority of our revenue actually comes from those small to medium issuers.

So we expect the transition to take a number of years and occur over time, similar to the contactless transition. But we do have a significant number of what I would call small to medium issuers who were interested in the product and want to buy the product. We have been selling it on a smaller scale, if you will, but it will be a benefit to our overall — we believe, our market share, our way to differentiate in the market, but also all of our eco-focused products, for the most part, are contactless and premium products, if you will. So you can also, generally speaking, charge either the same amount for a contactless card or sometimes anymore.

Unidentified Analyst: Great. Well, thanks for the call, and I’ll pop back into queue.

John Lowe: Okay. Thank you.

Operator: And that concludes today’s CPI Card Group fourth quarter earnings call. Thank you for joining, and have a good day.