Untact Sparks Flood of 'No Physical' Digital Cards (Comprehensive)

Hanacard's 'Modu-ui Shopping' Followed by Shinhan Card's Launch of 'YaY'

[Asia Economy Reporter Ki Ha-young] Mobile-only credit cards without physical cards are being launched one after another. As the untact (contactless) consumption culture spreads, attention is focused on whether digital cards, which had not received much response until now, can establish themselves as a new trend.

According to the card industry on the 26th, Shinhan Card launched the mobile-only card 'Shinhan Card YaY (Yay Card)' on the same day. This card is a 100% digital product where the entire process from issuance application to use is conducted contactlessly. After applying, the card is sent immediately to the mobile device and can be registered on Shinhan PayFAN for use in less than 30 minutes. Taking advantage of the characteristics of digital cards, it introduced the world's first moving Minions GIF on the card plate.

The benefits are optimized for the home economy (home + economy) and untact consumption market. Shinhan Card was the first in the industry to introduce the 'Mariage' service, which provides benefits when using real-time online video (OTT) services and food delivery services together. In addition, targeting homebodies who enjoy leisure activities at home, various service benefits were added to enjoy home game rooms, home interior, and home drinking. Earlier, on the 7th, Shinhan Card also introduced 'D-Club,' a 100% digital membership service.

Hana Card also launched the mobile-only 'Everyone's Shopping' card on the 19th. It is the first product leading Hana Card's digital ecosystem and is a digital card that can be issued and used immediately via mobile. It provides basic benefits in online and offline shopping sectors frequently used by customers through big data analysis.

The reason for the increase in digital card issuance is that the untact consumption trend has strengthened after the COVID-19 pandemic. As offline-centered consumption rapidly shifts online, the need for physical cards is gradually decreasing. The establishment of online payment environments, including mobile, in recent years has also contributed to the increase in digital cards.

Issuance of credit cards through non-face-to-face channels is also increasing. According to seven specialized card companies (Shinhan, Samsung, KB Kookmin, Hyundai, Lotte, Woori, Hana Card), as of the end of last year, the proportion of newly issued credit cards through online channels recorded 26.6%, nearly four times higher than 6.3% in 2015.

An industry official said, "In the case of digital cards, the cost of card issuance can be reduced and returned to customers as benefits," adding, "We are watching whether digital cards, which were previously considered premature, can settle in the market."

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