[Gi Ha-Young's Everyday Card] "My Card Instead of Mom's"… How About a Youth-Only Card?

Prepaid Electronic Payment Methods, from KakaoBank 'Mini'
to Youth-Only Debit Cards from Each Card Company
A Surge in Financial Services for Youth

[Asia Economy Reporter Ki Ha-young]Is there anyone these days without at least one credit card? In modern society, anyone can have a card if they want. Credit cards have brought unparalleled convenience to daily life. Now, wherever you go, you can easily see people paying with credit cards or smartphones. As demand has increased, cards with various benefits are being released almost daily. Accordingly, Asia Economy delivers diverse stories related to cards, which are inseparable from our consumer life, through the weekly 'Cards in Daily Life' corner, including introductions of new cards, industry behind-the-scenes, and guides for card beginners.

124,000 subscribers in just 3 days after launch.

KakaoBank's youth-exclusive financial service 'KakaoBank Mini(mini)', launched on the 19th, has surpassed 100,000 subscribers within 3 days of release, gaining popularity. Mini is a prepaid electronic payment method that only youths aged 14 to 18 can open. It can be used without opening or linking a bank account, and once you receive a Mini card, you can use ATM deposits and withdrawals as well as youth-only transportation card functions.

Kakao Mini can be seen as a prepaid card that you charge with the desired amount and use. For example, it is a product similar to the prepaid transportation card T-money. The card industry’s stance is to capture the hearts of future potential customers, youths, with youth-exclusive check cards rather than prepaid cards.

Especially since April this year, youths aged 12 to 17 can also be issued check cards with postpaid transportation card functions, leading to the release of youth-exclusive check cards one after another. Compared to KakaoBank Mini, youth postpaid transportation cards have a lower issuance age and can be used without precharging transportation card amounts. The transportation card amount used is later billed on the check card payment date. However, the transportation card usage amount is limited to 50,000 KRW per month, and issuance of youth postpaid transportation cards requires the consent of a legal guardian.

Youth Postpaid Transportation Cards Released One After Another... "No Need to Recharge Transportation Fees"

This year, the youth-exclusive check cards introduced by card companies provide discount benefits based on the previous month’s spending, with a 'postpaid transportation card' function that automatically applies youth transportation fare discounts. The previous month’s spending criteria are set between 50,000 and 100,000 KRW, considering youths’ spending habits.

KB Kookmin Card’s 'Ssoyoung Check Card', launched last month, offers discount benefits in six popular categories among youths if the previous month’s card usage is over 50,000 KRW. When using streaming services (Melon, YouTube), stationery stores, study cafes/reading rooms, convenience stores, fast food restaurants, and public transportation, 5% of the payment amount is discounted up to 1,000 KRW per category per month. Of course, the postpaid transportation card function is included by default.

Shinhan Card also provides postpaid transportation card functions and discount benefits through the 'Teens Plus Pony Check Card'. If the previous month’s spending is over 100,000 KRW, 5% cashback (up to 5,000 KRW per month) is given for payments over 5,000 KRW at fast food restaurants such as Baskin Robbins, Dunkin Donuts, and Burger King. Additionally, once a month, there is a 2,000 KRW discount at CGV cinemas and a 50% discount on three annual amusement park (Lotte World, Seoul Land) free admission tickets.

Discounts on Convenience Stores, Fast Food, etc. with 50,000?100,000 KRW Previous Month Spending

Woori Card’s 'Card of Principles Cream Teens Check' stands out for its public transportation discounts. When issued as a postpaid transportation type, if the previous month’s spending is over 100,000 KRW and bus and subway usage combined exceeds 20,000 KRW, 2,000 KRW cashback is provided. Additionally, 1,000 KRW is refunded when spending over 10,000 KRW at convenience stores, bakeries, and fast food restaurants. Hana Card’s 'Little Friends Teenager Check Card' also offers cashback benefits up to 5,000 KRW per month at convenience stores, bookstores, and bakeries, with a previous month spending criterion of 100,000 KRW.

Lotte Card introduced the 'Tiny Pass Card' in prepaid card form for youths earlier this year. It is characterized by being usable as a youth transportation card without separate charging by linking to a parent’s credit card. The child’s public transportation usage amount is automatically billed to the parent’s credit card.

Youth-exclusive services still have low usage amounts and are not yet profitable markets for financial companies. Nevertheless, financial companies are competing to introduce related services to target youths as future potential customers. It is an exciting market to watch for what new services will be launched in the future.