In the Era of 3 Highs... Utility and Living Expense Discount Card Rankings Soar

Lotte Card 'Roca365' Rises from 92nd to 1st
3 of Top 5 Types Offer 'Utility Bill Discounts'

[Asia Economy Reporter Minwoo Lee] As we enter the era of the 'three highs'?high inflation, high interest rates, and high exchange rates?credit card users are tightening their belts. Attention is shifting from various consumption-related benefits to credit cards that offer discounts on essential living expenses such as utility bills, fuel, and telecommunications.

According to the industry on the 27th, Lotte Card's 'Roca365' ranked first in the domestic credit card subscription rate ranking estimated by the credit card platform Card Gorilla based on product inquiries and application numbers. When it was launched in April, it was only ranked 92nd, but it rapidly rose to 16th in July and 5th in August, eventually reaching first place by the end of the year. The main benefit of this card is utility bill discounts. It offers a 10% discount on apartment management fees, city gas bills, and electricity charges. Other discount benefits are also focused on various living expenses such as public transportation, telecommunications, and insurance fees.

As inflation rises and interest rates soar, increasing the burden of living expenses, the popularity of credit cards offering utility bill benefits is soaring. Besides 'Roca365,' Shinhan Card's 'Mr. Life' and Hana Card's 'OneQ Daily Plus,' both offering a 10% utility bill discount, ranked 3rd and 4th respectively. This month, cards offering utility bill discounts accounted for 60% of the top five credit cards. Hana Card's 'Multi Young' card, which offers discounts on electricity, city gas, telecommunications, public transportation, and even laundry fees, rose from 78th place in January to 15th place this month.

On the other hand, Hyundai Card's 'Zero Edition 2,' which held the top spot consecutively through the third quarter this year, plummeted to 16th place. Although it gained popularity by offering discounts at all merchants without spending requirements, it began to be overlooked by consumers who started tightening their wallets and belts in the fourth quarter.

As the government has announced significant increases in electricity and gas rates starting next year, it seems that more people are seeking cards with utility bill benefits rather than simple merchant discounts. Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho recently stated that due to the accumulated deficits of Korea Electric Power Corporation and Korea Gas Corporation, increases in electricity and gas rates next year are inevitable. Accordingly, KEPCO and the Gas Corporation are expected to announce their rate increase plans for next year this week. Industry insiders predict electricity rates will more than double, and gas rates will rise by about 1.5 to 1.9 times.

Overseas, too, awareness of high inflation is driving interest in cards that offer no annual fees or discounts on living expenses. According to the U.S. credit card comparison site CreditCards.com, 7 out of the 15 popular credit cards this year offer supermarket discounts. In the UK, 8 out of 10 popular credit cards selected by the financial site Finder.com have no annual fees.

A Card Gorilla official explained, "The trend in credit cards domestically and internationally is focusing on the post-COVID era and high interest rates. Since news of monthly bill increases such as electricity and gas fees began circulating, the ranking of utility bill cards has been on the rise. This contrasts with the first half of this year, when more than half of the top 10 credit cards were no-spending-requirement cards."