Various Convenience Services Offered by Card Companies
Shinhan Card Launches App Push Service for Usable Merchants
Samsung Card Provides Merchant Search Service
[Asia Economy Reporter Ki Ha-young] As the payment process for the 'COVID-19 Coexistence National Support Fund' amounting to 11 trillion won has begun, competition among card companies to secure users has also intensified. Although the commission revenue is not large, card companies are launching various convenience services to attract new customers and acquire consumption data.
According to the Ministry of the Interior and Safety and the credit card industry on the 6th, online applications for the National Support Fund through nine card companies (Shinhan, Samsung, KB Kookmin, Hyundai, Lotte, Woori, Hana, BC, NH Nonghyup Card) started from 9 a.m. that day. In the first week of implementation, a day-of-the-week system is applied according to the last digit of the birth year. On this day, people whose birth year ends in 1 or 6 can apply.
The Coexistence National Support Fund is a disaster relief fund that about 88% of the population can receive 250,000 won per person. Eligibility can be checked and applications can be made immediately on each card company’s website and application (app). The support fund is charged in the form of points from the day after applying with a credit or debit card and can be used thereafter.
Card companies are introducing various convenience services to attract new customers. Shinhan Card offers the 'Our Neighborhood Support Fund Store Notifier' service, which sends push notification messages via the Shinhan Pay Fan app about affiliated stores near the user’s home where the support fund can be used. Among customers who apply for the Coexistence National Support Fund and agree to location-based services, from the 8th, when entering nearby commercial areas based on the registered home address in Shinhan Card, they can receive messages showing affiliated stores where the support fund can be used on a map.
Samsung Card operates an affiliated store search service. On the search screen, the region where the customer applied for the National Support Fund can be displayed at the top, and users can conveniently search for affiliated store names, addresses, and contact information by entering the desired region’s store name. KB Kookmin and Woori Cards provide services that display affiliated stores where the National Support Fund can be used on a map, and BC Card is also expected to launch a National Support Fund usage guide service. Hyundai Card has subdivided the app related to the National Support Fund application into stages such as eligibility inquiry application, application status inquiry/change, usage history inquiry, and usage location inquiry to enhance user convenience.
The card industry expects that commission revenue will not be high since the support fund usage locations are affiliated stores of local love gift certificates. Small and medium-sized affiliated stores with annual sales under 3 billion won receive a preferential card commission rate of 0.8% to 1.6%. During last year’s nationwide disaster relief fund, card companies also suffered losses of about 8 billion won. According to the office of Yoon Chang-hyun, a member of the People Power Party, card company commission revenue from the disaster relief fund paid between May and August last year was 97.4 billion won, while operating expenses recorded 105.4 billion won.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
