In the realm of digital innovation, South Korean credit card companies are stepping up their game. From payment processing to financial transactions, a new wave of super apps is emerging, consolidating a variety of services such as shopping, personal finance, and cultural information into one convenient platform. These super apps are designed to cater to individual preferences by analyzing customer payment data and offering personalized consumption information. Some companies have even integrated new technologies like Non-Fungible Tokens (NFTs) into their services to stay ahead in the digital innovation race.
Super App Competition Among Credit Card Companies
Leading the charge in the super app competition is Shinhan Card with its "Shinhan SOL Pay," positioning itself as the number one lifestyle finance platform. Shinhan Card offers a comprehensive digital payment lineup that covers all mobile devices and merchants. SOL Pay not only enhances its core functions of payment and financial services but also focuses on customer convenience by optimizing the user interface and experience with features like timelines and personalized pages. The touch payment feature for offline transactions allows both Android and iPhone users to make payments with a simple tap. Additionally, Shinhan Card has developed a dedicated wallet case called "Wallet" for iPhone users.
Samsung Card is bolstering its unified platform, "Monimo," under Samsung Financial Networks. By offering key services from Samsung Life, Samsung Fire & Marine, Samsung Card, and Samsung Securities, along with content in 18 interest areas like morning weather missions, real estate, personal finance, health, and more, Monimo has garnered positive customer response. Last month, Samsung Card introduced "Monimo Pay," a service that enables online and offline payments using Samsung Card and Moni Money, diving into the payment competition.
KB Kookmin Card is leveraging the KB Pay platform from KB Financial Group. With KB Pay, customers can make payments at both online and offline merchants using a single app. The platform has been enhanced with mobile student IDs, open banking, investment services linked with KB Securities, and the National Assistant Alert service. As of April, KB Pay has surpassed 12 million registered users, with 4 million customers engaging in shopping and travel services launched last October.
Enhancing Customer Service with Innovative Technologies
Lotte Card’s "DigiLoca" app has introduced services that cater to customers‘ interests and lifestyles. For instance, the "Discovery" tab added to the app in May provides personalized product recommendations, content, and benefits based on customer preferences. DigiLoca offers personalized curation services across ten categories, including travel, personal finance, education, electronics, wellness, automotive, digital, pets, luxury, and golf. The app also recommends products, promotions, and events related to the customer’s interests.
Hyundai Card has introduced new services using blockchain technology, with NFT tickets being a prime example. NFTs utilize blockchain technology to prove authenticity and uniqueness, making ticket transfers or resale impossible. Focusing on cultural endeavors, Hyundai Card has decided to issue all tickets for the upcoming "2024 Hyundai Card Da Vinci Motel" event as NFTs. Additionally, attendees will receive limited edition t-shirts with NFC functionality, providing NFT coupons with various benefits.
Boosting Product Competitiveness
In the wake of the COVID-19 pandemic, the competition among South Korean credit card companies to attract the increasing number of travelers has intensified. Specialized services for overseas travel are also being revamped in line with app innovations. The digital transformation of credit card companies is also aimed at targeting the potential customer base of the MZ (Millennial + Gen Z) generation.
Hana Card’s "Travelog" gained popularity among the MZ generation after word spread that the Hana Money app allows free currency exchange and fee-free travel post-pandemic. Services like free currency exchange, zero overseas transaction fees, and free overseas ATM withdrawals have become industry standards through Travelog.
Woori Card entered the competition with the "WeeBit Travel Check Card," a card tailored for overseas travel. Woori Card has recently partnered with Singapore’s UOB Bank to enhance customer benefits in the Southeast Asian region. By utilizing UOB-affiliated merchants in Singapore, Vietnam, Thailand, customers can enjoy additional discounts.
South Korean credit card companies are also focusing on enhancing their product competitiveness. BC Card has introduced new card products targeting the MZ generation. The recently launched "iM A Check Card," developed in collaboration with iM Bank, features characters designed by Moon Labs Studio in 2020.
Shinhan Central Cooperative and its "Shinhan Goo Check Card" cater to teenagers with the initials "Goo" derived from the popular slang, reflecting the characteristics of the youth who frequently use trendy language and abbreviations.
In conclusion, South Korean credit card companies are at the forefront of digital innovation, offering a wide range of services through super apps, integrating cutting-edge technologies to enhance customer experiences, and boosting product competitiveness to cater to evolving consumer needs. As the digital landscape continues to evolve, these companies are poised to stay ahead in the competitive market by embracing innovation and meeting the demands of the modern consumer.