The approach
Show the tap first.
Do not start with why offline storage is better. Start by holding the card to a phone and letting them watch the list appear. Two seconds does more than two paragraphs.
Then say the three sentences that actually matter: what is on it, where it lives, and that the password cannot be recovered by anyone.
Finish by having them do it once themselves. People remember their own hands.
The script
Four things to say.
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I
What it is
"It is a card that holds the few logins that really matter."
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II
How to open it
"Hold it to the back of the phone and type the password."
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III
Where it lives
"This one stays here. Do not carry it."
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IV
The limit
"If we both forget the password, nobody can get in. Not even them."
Two seconds of tap
beats two paragraphs.