Apple Pay Effect Emerging... Hyundai Card Draws Attention

Increased Preference for Hyundai Card After Apple Pay Official Launch
Possibility of Market Share Shift... Potential to Become Industry's Second Largest

[Asia Economy Reporter Minwoo Lee] Hyundai Card is expected to increase its market share by being the sole company to launch Apple Inc.'s contactless payment service 'Apple Pay' first in South Korea. Interest in issuing Hyundai Card is already growing.

On the 19th, the domestic credit card platform 'Card Gorilla' revealed that Hyundai Card's upward trend stands out in the monthly credit card rankings based on the number of product views and application conversions from the 1st to the 17th of this month. Among the top 30 cards, 10 cards improved their rankings compared to the previous month. Of these, 30% (3 cards) were Hyundai Cards. Hyundai Card was not included among the 21 cards whose rankings fell or remained unchanged (9 fell, 11 maintained). This contrasts with the atmosphere last month before the official decision to launch Apple Pay domestically. Last month, among the top 30 cards, there were more cases of ranking maintenance or decline (2 cards) than ranking increases (1 card).

Users seem to increasingly prefer Hyundai Card, which decided to launch Apple Pay alone. This interest in Hyundai Card is also reflected in a recent survey conducted by Card Gorilla. From the 6th to the 15th of this month, 2,082 respondents were asked which card they would use for Apple Pay. Six out of ten respondents chose 'Hyundai Card.' Specifically, 57% (1,187 votes) answered that they would be the first to use Apple Pay with 'Hyundai Card (including new issuance).' Those who chose to 'wait until they can use other company cards' accounted for only 30.7% (640 votes).

Due to this popularity, there is a forecast that Hyundai Card's domestic market share could also rise. According to the Credit Finance Association, Hyundai Card's market share at the end of last year was 17.8% (based on domestic individual usage in December 2022), ranking third among domestic card companies including Shinhan, Samsung, Hyundai, KB Kookmin, Lotte, Woori, and Hana. If the number of places accepting Apple Pay increases after its launch, it is expected that Hyundai Card could catch up with Samsung Card's market share (19.7%), which is just above it.

The industry expects Apple Pay to be available early next month. Currently, NFC terminals that support Apple Pay are installed mainly at large retail stores such as convenience stores nationwide, Shinsegae Department Store, Lotte Department Store, Starbucks, Paris Baguette, Lotte Hi-Mart, and IKEA. Go Seunghoon, CEO of Card Gorilla, said, "Since iPhone users have been eagerly waiting, a significant number of people are expected to use it immediately," adding, "As the number of merchants accepting payment increases and transportation card functions are added, the number of users will grow even more."

Jung Tae-young, CEO of Hyundai Card, posted a photo hinting at Apple Pay on his social media service (SNS) account. (Source: Screenshot of Jung Tae-young's Instagram post)