Consumers Tighten Belts Due to COVID... First Turn to 'Living Expense Discount' Cards

Includes 6 Models in Top 30
Aimed at the 3050 Generation

[Asia Economy Reporter Ki Ha-young] In the first half of this year, as consumption contracted due to the impact of the novel coronavirus infection (COVID-19), fixed cost discount cards that help with daily living expenses gained popularity, according to a survey.

On the 22nd, Card Gorilla, the largest credit card specialist site in Korea, announced the '2020 First Half Popular Credit Cards,' revealing that six types of living expense cards offering utility bill discounts were included in the top 30, accounting for 20% of the total. These cards provide discounts or rewards for the four major insurances, apartment management fees, electricity, city gas, water, and communication charges. The rankings were based on the number of card product views and application conversions on the Card Gorilla website (PC and mobile integrated) from January 1 to June 30 this year.

Shinhan Card's 'Mr. Life' ranked 9th, achieving the highest position among living expense cards. Half of the six cards were from KB Kookmin Card, including 'Tantan Dae-ro Biz Titanium' (13th), 'Tantan Dae-ro All Shopping' (18th), and 'Tantan Dae-ro All Shopping Titanium' (30th). Hana Card and Woori Card's 'OneQ Daily Plus' (17th) and 'Only My Card' (26th) were also included in the rankings. However, 'Tantan Dae-ro Biz Titanium' was discontinued in April, and 'Only My Card' is scheduled to be discontinued on the 1st of next month.

The contraction in consumption due to COVID-19 was confirmed by data. According to the Bank of Korea, the usage of payment cards such as credit and check cards from February to May this year, when COVID-19 spread in earnest, decreased by about 2.1% compared to the previous year. In a recent survey conducted by Job Korea and Alba Mon targeting 1,755 office workers about 'consumption patterns after COVID-19,' 7 out of 10 respondents said they consciously practice frugal consumption after COVID-19.

Among newly launched cards in the first half, many emphasized fixed cost discounts. Representative examples include Shinhan Card's 'Deep Ones,' Woori Card's 'Card Eojeongseok APT,' and KB Kookmin Card's 'Easy Link Titanium Card.' Since fixed costs are steady expenses, card companies expect fixed cost discount cards to have a lock-in effect that can increase customer loyalty.

Go Seung-hoon, CEO of Card Gorilla, said, "As household economies are hit by the COVID-19 pandemic, fixed cost discount benefits that provide practical help in daily life are gaining attention," adding, "In addition to utility bill discounts, we targeted customers in their 30s to 50s looking for living expense cards by offering discounts in areas such as fuel, marts, and online shopping."