Excluding Precious Metals and Liquor Stores
Improvement of Financial Services for Youth
[Asia Economy Reporter Ki Ha-young] Samsung Card is restricting the usage locations for rechargeable registered prepaid cards for minors. This measure aims to block unnecessary business sectors to ensure safe transactions for minors. Until now, rechargeable cards could be used by teenagers without any restrictions on business sectors. However, as youth-exclusive financial services centered around big tech have become active, existing financial institutions appear to be improving previously insufficient aspects related to youth services.
According to Samsung Card on the 24th, starting from the 1st of next month, the usage locations for Samsung Pay rechargeable cards for minors under the age of 19 will be changed. Additional excluded usage locations will include precious metals and watches, liquor stores, golf courses, karaoke rooms, and nightclubs.
Rechargeable cards are a type of prepaid card. Users pay in advance and can make payments within the amount recorded on the card. Transportation cards are a representative example. Generally, those who do not possess check or credit cards use prepaid cards through charging. This group includes minors such as children.
The addition of excluded usage locations means that minors have been able to use Samsung Pay rechargeable cards without restrictions on usage locations until now. A Samsung Card official explained, "There have been no usage records of minors in the specified business sectors," and added, "Unnecessary business sectors have been preemptively excluded to ensure safe transactions for minors."
Registered Prepaid Cards Had No Usage Restrictions for Minors Until Now
Prepaid cards operated by card companies are divided into registered and unregistered types. In the case of unregistered cards, the cardholder's name is not printed on the card, so unless the customer registers the card with the card company's system for income deduction or other purposes, the card company cannot know the user's information. Most card companies operate unregistered prepaid cards under the name "Gift Card."
On the other hand, registered prepaid cards have the member's name printed on the card or the member's information exists in the card company's system, allowing the company to know the user's information. However, until now, rechargeable registered prepaid cards did not have usage restrictions based on the user's age. Shinhan Card also operates registered rechargeable prepaid cards but had no restrictions on business sectors for minors. However, they have stated that they will consider restricting usage locations for minors in the future. Woori Card also operates rechargeable prepaid cards but has no separate restrictions related to minors.
KB Kookmin Card has separately operated rechargeable prepaid cards equipped with a clean function that restricts usage at certain merchants inappropriate for youth, such as karaoke bars and massage parlors. Hyundai, Lotte, and Hana Card currently do not operate rechargeable prepaid cards.
An industry official explained, "As the age of accessing financial products through big tech platforms decreases, the financial sector's interest in youth as potential customers is increasing," adding, "Because of this, issues related to youth that had been overlooked are now being improved."
Another industry official said, "The proportion of minors using prepaid cards is not very high," and added, "Recently, youth-exclusive cards in the form of family cards with restrictions on usage sectors and limits have also been introduced in the card industry."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
