Changed Consumption Due to COVID-19... Credit Card Companies Focus on Untact Marketing

Increase in Online Consumption Amid COVID-19 Spread
Targeting Online Shopping and Subscription Payment Markets

[Image source=Yonhap News]

[Asia Economy Reporter Ki Ha-young] Office worker Yoo Jin-joo (33, pseudonym) is minimizing outings as much as possible amid the spread of the novel coronavirus infection (COVID-19). She uses Market Kurly and Coupang for grocery shopping, and purchases hard-to-find masks and hand sanitizers through direct overseas purchases. Spending more time at home, she also subscribed to Netflix to watch dramas and variety shows.

As contactless consumption increases due to the spread of COVID-19, credit card companies are also changing their marketing strategies. In line with the untact consumption trend that avoids face-to-face contact, they are strengthening online shopping benefits and targeting the subscription payment market.

According to the industry on the 10th, among the eight full-service card companies (Shinhan, Samsung, KB Kookmin, Hyundai, Lotte, Woori, Hana, and BC Card), the amount of online credit card usage in personal credit card approvals from the 1st to the 23rd of last month increased significantly. The online personal credit card approval amount recorded 2.092 trillion won in the first week of February (3rd?9th), increased by 0.9% to 2.1111 trillion won in the second week (10th?16th). In the third week (17th?23rd), when COVID-19 confirmed cases surged, it rose 8.1% from the previous week to 2.2817 trillion won.

Online consumption surpassed the amount spent at comprehensive retail stores such as department stores and large supermarkets for the first time last year. According to the '2019 Payment Trends' announced by the Bank of Korea, the use of personal credit cards for e-commerce and telecommunication sales surged 22.1% compared to the previous year. For the first time since the statistics began in 2010, the amount used at comprehensive retail stores (large supermarkets, department stores, convenience stores) was exceeded.

As COVID-19 infections surpassed 7,000, the proportion of online consumption is expected to increase further. Accordingly, card companies are also working to secure untact customers who minimize face-to-face contact.

Events related to online shopping are representative examples. Hyundai Card is running the 'M Point Week 03' event until the 15th, offering a 50% M Point payment benefit at designated online shopping malls on specific days of the week. KB Kookmin Card is offering a $5 discount on Malltail shipping agency fees for international brand card members this month.

There are also abundant events related to subscription payments. Samsung Card offers a 30% cashback benefit when paying for a subscription for the first time with Samsung Card on 'Watcha Play' and 'FLO' this month. Additionally, it provides a 3,000 won cashback upon first joining the paid membership 'Super Club' of the delivery platform 'Yogiyo.' KB Kookmin Card is running an event that offers cashback and other benefits when apartment management fees, city gas bills, etc., are automatically paid by card.

This content was produced with the assistance of AI translation services.