Tightening Belts Due to COVID-19... Utility Bill Card Searches Surge by 30%

Card Gorilla, Analysis of 'Conditional Search'
Interest in Utility Bills & Rental, Easy Payment Benefits ↑
Airline Mileage, Overseas Payments ↓

[Asia Economy Reporter Ki Ha-young] Due to the impact of the novel coronavirus infection (COVID-19), the number of people seeking benefits for utility bills, rentals, and simple payment credit cards has increased, while interest in overseas travel benefits has decreased.

According to 'Card Gorilla,' the largest credit card specialist site in Korea, interest in benefits related to utility bills and rentals among credit card benefits has increased by more than 30% since COVID-19. Among those in their 30s and 40s, searches for simple payments also increased by over 30%. On the other hand, searches for overseas travel benefits, including airline mileage, dropped by more than 40%.

This survey analyzed the credit card benefits selected by consumers in the 'Search by Condition' section on the Card Gorilla website during the fourth quarter of 2019 and the first quarter of 2020. Consumers were categorized into three groups: those in their 20s, 30s, and 40s or older.

Search Rates After COVID-19... Utility Bills & Rentals ↑, Airline Mileage ↓

Across all generations, the search rates for benefits in the first quarter of 2020 compared to the fourth quarter of 2019, just before the outbreak of COVID-19, changed significantly. Among those in their 20s, searches for utility bills and rentals increased by 30.2%, simple payments by 15.5%, and no-spending-requirement cards by 14.6%. Conversely, airline mileage dropped by 37.4%, airport lounge/PP by 31.8%, travel/accommodation by 26.4%, and overseas benefits by 26.1%. Searches for premium cards, mainly composed of travel and airline benefits, also fell by 23.2%.

Among those in their 30s, utility bills and rentals rose by 35.2%, and simple payments showed a high increase of 30.8%. Beauty and fitness benefits increased by 14.7%, following closely. However, airline mileage declined by 42.3%, showing a steeper drop than in the 20s group. Airport lounge/PP decreased by 32.7%, overseas by 25.7%, premium by 23.2%, and travel/accommodation by 20.4%.

For those aged 40 and above, searches for utility bills and rentals surged by 42.4%, showing a higher growth rate than the 20s and 30s groups. Simple payments also increased by 32.1%, proving the rise of the smart old generation. As this generation has significant living expenses, searches for mart and convenience store benefits increased by 21.1%. Conversely, travel/accommodation dropped by 42.6%, overseas by 42.3%, airport lounge/PP by 41.3%, airline mileage by 35.3%, and premium by 31.4%.

20s Search More for No-Spending-Requirement Cards, 30s for Beauty & Fitness, 40s for Mart & Convenience Store Benefits

Regardless of generation, the benefit with the highest increase in search rate was utility bills and rentals, rising by more than 30-40%. The second was simple payments, especially showing over 30% growth among consumers aged 30 and above. The third place showed clear preferences by generation: those in their 20s searched more for no-spending-requirement cards, those in their 30s for beauty and fitness, and those aged 40 and above for mart and convenience store benefits. Benefits with decreased searches were similar across all generations, with airline mileage and airport lounge/PP dropping by more than 30-40%.

Go Seung-hoon, CEO of Card Gorilla, said, "As overseas travel became impossible due to COVID-19 and household economies contracted, demand rapidly shifted from leisure to cards that offer discounts on living expenses. Cards that provide monthly bill discounts or simple payment discounts, in addition to transportation, communication, and shopping benefits favored by all ages and genders, will become new strong contenders."

In fact, looking at Card Gorilla's popular credit card rankings in September, after the long-standing number one 'Lotte Card Like It Fun' was discontinued, the utility bill discount card 'Shinhan Card Mr. Life' took first place. Meanwhile, among the top 30, only one airline mileage-specialized card, 'Samsung Card & Mileage Platinum (Skypass),' ranked 20th.

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