No. 1 in Personal Overseas Credit Card Spending for 26 Consecutive Months
Amex and Korean Air Partnerships... Impact of Apple Pay Introduction
Hyundai Card ranked first in personal overseas credit card spending last month, maintaining the top spot for 26 consecutive months. The company’s diverse premium product portfolio, built through partnerships with American Express (Amex), Korean Air, and others, as well as establishing its brand image by being the first in Korea to introduce Apple Pay, are credited as key factors behind this achievement.
According to overseas credit sales performance data by card company released by the Credit Finance Association on the 22nd, Hyundai Card recorded 316 billion KRW in overseas credit sales last month, ranking first. The company has maintained the top spot for 2 years and 2 months (26 months) since May 2023. Last year, Hyundai Card’s performance in this segment reached 3.5253 trillion KRW, a 29.3% increase from the previous year. In 2023, Hyundai Card also ranked first among card companies in total credit sales (including corporate cards) with 166.2688 trillion KRW, with overseas performance playing a significant role in this result.
The pace is even faster this year. In the first half of the year, personal overseas spending reached 1.845 trillion KRW. Total credit sales (including corporate cards) for the first half amounted to 86.6506 trillion KRW, a 6.8% increase compared to the same period last year.
Hyundai Card emphasized the significance of maintaining its leading position in credit sales, which is the core business of card companies. While short-term card loans (cash advances), long-term card loans (card loans), refinancing loans, and revolving payment plans also contribute to profitability, these services can negatively impact the capital soundness of cards depending on customer creditworthiness and other factors.
The company also highlighted the importance of strengthening its brand image as a leader in innovation with a diverse product portfolio. In May 2023, Hyundai Card became the exclusive partner in Korea for the Amex Centurion Design Card. The Amex Centurion Card is famously held by the world’s top 0.001% of clients, including former U.S. President Donald Trump, Microsoft founder Bill Gates, American singer Ariana Grande, and Jay-Z. The share of Hyundai Amex Card transactions is four times higher than the proportion of all overseas products handled by Hyundai Card, underscoring its importance. The number of Hyundai Card premium card members increased by 33% last year, which is eight times the growth rate of the overall membership.
Hyundai Card also attributed its performance to the Korean Air Card, its flagship private label credit card (PLCC). Launched in 2020, this was the first airline-exclusive credit card in Korea. Last year, the company introduced the Korean Air Card Edition 2, which enhanced mileage accumulation, airfare discounts, and benefits such as lounge access and valet parking. As a result, overseas transaction volume for this card increased by 62% compared to the previous year and by 297% compared to 2022.
The increased convenience of overseas payments through Apple Pay is also seen as a contributing factor. After introducing Apple Pay in 2023, Hyundai Card improved the convenience of EMV contactless payment methods for iPhone-using members. The EMV contactless payment method is the near-field communication (NFC) payment standard adopted by Apple Pay. In Korea, the magnetic secure transmission (MTS) method is commonly used, making it difficult to be compatible with Apple Pay. Hyundai Card addressed these technical challenges, thereby boosting its overseas credit sales performance.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
