This Year's New Credit Card Trend: 'Contactless Consumption'

Benefits Focused on Delivery Apps, Digital Subscriptions, and Online Shopping

[Asia Economy, Reporter Ha-Young Ki] A significant number of new credit cards released this year have been found to focus on contactless (untact) consumption. As contactless services have become part of daily life due to COVID-19, these cards are primarily offering benefits for delivery applications, digital subscriptions, and online shopping.

According to Card Gorilla, a credit card information website, on November 26, card companies this year have launched numerous new cards featuring benefits for delivery apps, digital subscriptions, and online shopping.

For delivery apps, private label credit cards (PLCCs) and partnership cards stand out. The 'Baemin Hyundai Card' offers up to 3% Baemin points based on spending in different categories, while the 'Yogiyo Samsung Card' provides up to 10% discounts on Yogiyo, and the 'Yogiyo Shinhan Card' offers up to 20% discounts on Yogiyo. Some cards make delivery app benefits their main feature and add other contactless benefits as well. Notable examples include the 'Shinhan Card Yey', 'NH Nonghyup Olbareun Flex Card', and 'Woori Card Jeongseok Untact Air'.

Alongside delivery app benefits, the most frequently provided perk is for digital streaming services such as Netflix and YouTube Premium. Most of this year's new cards include this benefit. Hyundai Card introduced 'Digital Lover', an OTT-exclusive card with 'digital' in its name, and Samsung Card added 'TapTap Digital' to its popular TapTap series, offering half-price discounts on streaming services. Woori Card launched three 'Card Jeongseok Untact' series cards this year, all of which provide a 20% discount on digital subscription auto-payments.

Online shopping benefits are also a major trend. According to the Financial Services Commission, in the third quarter of this year, credit card spending on online shopping surged by 22.7% compared to a year earlier. 'Hana Card Modeuui Shopping', which offers a basic 10% reward for online shopping, became very popular by offering up to 60% online shopping benefits as a special launch booster. Shinhan Card released the shopping-specialized 'Shinhan Card Unboxing', which offers a 10% discount and delivery fee discounts for both online and offline shopping, while 'Shinhan Card Yey' gives 2,500 points for each online shopping mall transaction.

Go Seunghoon, CEO of Card Gorilla, said, "There are so many new cards that have responded quickly to this year's rapid changes in consumption patterns that you can grasp the 2020 consumption trends just by looking at the new cards. I am looking forward to seeing the year-end performance results of these new cards, which have focused on digital subscriptions and delivery apps."