Bo-eun leads the digital content team. She has covered foreign affairs, North Korea, tech, economy and gender issues at The Korea Times. She did a short stint at the South China Morning Post in Hong Kong, where she obtained a new perspective on news production and life. Small sources of joy for her are lounging in the sun, having a good latte and swimming.
Card firms expand partnership with retailers, tech firms
By Kim Bo-eun
By Kim Bo-eun
Card issuers are expanding their partnerships with retailers and tech companies as a growing number of customers are making purchases through their rivals' simple payment services.
A simple payment service is an online-based medium through which customers can make purchases with biometrics such as fingerprints or by simply typing in a password, rather than how online purchases were made previously ― the process required the customer to type in their card information and undergo an identification process.
Online retailers began offering their own simple payment services to prevent customers from leaving their sites due to the existing complicated purchasing process. Through their medium, customers can make quick and easy purchases using the credit cards they own.
In an effort to join hands with retailers and tech firms, once considered rivals, card firms are releasing cards that offer discounts or accumulate points that can be used when using the payment services offered by online retailers or tech firms.
Shinhan Card recently launched a card that accumulates points when using SK Pay, the payment service offered by the online shopping mall 11st.
“We launched this card to lead the fast-changing payment market, based on a close partnership with 11st, a strong player in the e-commerce market.” Shinhan Card CEO Lim Young-jin said after signing a partnership with 11st last month.
Last year, Hyundai Card issued a card jointly with eBay Korea. Users making payments with the card on eBay-owned Gmarket, Auction or G9 get eight times the usual amount of accumulated points.
Samsung Card also launched a card with NHN Payco specializing in easy payment service. The card accumulates points for Payco. Samsung Card also has a partnership with Samsung Pay and Naver Pay, and issued specialized cards with each.
Lotte Card has partnered with Kakao Pay, Samsung Pay, Lpay and Payco to launch specialized cards.
The card firms offer their own online-based payment services, but customers are increasingly inclined to make purchases through the online retailers' medium when shopping online, as this is the easiest method.
The drastic discount rates online retailers offer to increase market share is also a factor that may lead to customers choosing retailers' payment services over those of card issuers.
The retailers are engaging in fierce competition based on the tendency of most customers, that after signing up for one simple payment service, they tend to stick to that one and do not sign up for other additional services.
Initially, when simple payment services started, card issuers did not collaborate with them.
“Card firms had concerns about becoming subordinate to the payment services,” an official of a card issuer said.
“Now we are working together as collaboration benefits both parties.”