[Ki Ha-young's Lifestyle Card] Post-Corona, Credit Card Keywords Are... "Borderless·Basic"

Increased Uncertainty Due to COVID-19
Growing Preference for Borderless and Basic Cards
Offering Simple Yet Powerful Benefits

[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, from introducing new cards to industry behind-the-scenes and guides for card beginners.

Due to changes in consumption patterns caused by the novel coronavirus infection (COVID-19), the types of card products preferred by consumers are also changing. A representative example is the decline of airline mileage cards, which had been popular. This is a result of the surge in non-face-to-face consumption such as online shopping and delivery applications (apps) during COVID-19, while travel-related spending decreased.

In line with this trend, 'Borderless' and 'Basic' have emerged as new keywords for card products. Instead of products limited to specific areas that could be hit by COVID-19, credit cards that return benefits based on spending at all merchants are gaining attention. Consumers are looking for simple and basic credit cards with strong benefits without having to consider many factors.

The popularity of the 'Hyundai Card MX Boost' series, which has attracted strong market interest since early this year, can be interpreted as reflecting this trend. The MX Boost series, launched by Hyundai Card on the 7th, surpassed its monthly issuance target in less than a week. In particular, some plate designs, such as the Jelly Bear design chosen by 33% of all issued members, received so many applications that issuance will be carried out sequentially from the 20th. The promotion offering 100,000 M points or 100,000 KRW cashback for payments over 100,000 KRW until the end of February also had an impact, but it is analyzed that the preference for borderless cards providing simple yet strong benefits at all merchants was reflected.

The Hyundai Card M and X series are borderless products and a kind of 'all-in-one card.' If you spend more than 500,000 KRW per month, you receive M points accumulation and discount benefits every time you use the card at any merchant regardless of payment category. The accumulated M points can be used at more than 65,000 locations nationwide.

The Hyundai Card MX Boost, released on the 7th, strengthens the accumulation and discount benefits of existing cards and introduces special benefits for online simple payments and overseas merchants reflecting the latest trends. M Boost provides 0.5% to 3% M points without limit depending on the merchant when spending over 500,000 KRW per month. For spending over 1,000,000 KRW per month, it provides 0.75% to 4.5%, and M3 Boost accumulates 1% to 6% for spending over 2,000,000 KRW per month. X Boost offers a 1% discount for spending 500,000 KRW per month and 1.5% for over 1,000,000 KRW. X3 Boost provides an additional 10,000 KRW cashback benefit for spending over 2,000,000 KRW per month.

Additionally, when paying through online simple payment services or overseas direct purchase at overseas merchants, M Boost provides 5% of the payment amount as M points, and X Boost offers a 5% discount on the payment amount. The annual fees for Hyundai Card M·X Boost, M2·X2 Boost, and M3·X3 Boost remain the same as before at 30,000 KRW, 60,000 KRW, and 90,000 KRW respectively.

'Back to the Basic.' As COVID-19 prolongs, consumer preference for borderless and basic card products is expected to increase. The greater the uncertainty, the more consumers seek products faithful to the basics. Following last year's trends of 'untact,' 'subscription economy,' and 'Private Label Credit Cards (PLCC),' it will be interesting to see what new cards will emerge in the market to capture consumers' hearts.