"Catch Future Customers"... Surge in Launch of Youth-Exclusive Check Cards

Postpaid Transportation Function Check Card Released
Future Investment Over Immediate Profit

[Asia Economy Reporter Ki Ha-young] The card industry is continuously launching dedicated check cards for teenagers, who are potential future customers. This is a strategic move aimed at securing the future market rather than immediate profitability.

According to the card industry on the 20th, check cards with postpaid transportation card functions for teenagers have been released one after another this year. Since April of this year, teenagers aged 12 to 17 have been able to use check cards with discounted postpaid transportation card functions. The target group includes 2.83 million teenagers aged 12 to under 18. The hassle of checking balances and recharging every time they use public transportation has been eliminated, leading to an increase in inquiries related to issuing postpaid transportation check cards for teenagers.

KB Kookmin Card's 'Ssoyoung Check Card,' launched last month, offers postpaid transportation card functions with automatic discounts on teenage transportation fares, along with discount benefits in six areas preferred by teenagers, including streaming services, study rooms, and convenience stores. When using streaming services (Melon, YouTube), stationery stores, study cafes/study rooms, convenience stores, fast food outlets, and public transportation, 5% of the payment amount is discounted up to 1,000 KRW per month in each category. The discount benefits are provided if the card usage amount in the previous month is 50,000 KRW or more.

Shinhan Card also offers postpaid transportation card functions and discount benefits through the 'Teens Plus Pony Check Card.' When spending 5,000 KRW or more at fast food outlets such as Baskin Robbins and Burger King, 5% of the amount (up to 5,000 KRW per month) is given as cashback. It also offers a 2,000 KRW discount once a month at CGV theaters. The previous month's usage requirement is 100,000 KRW.

Woori Card's 'Card of Jeongseok Cream Teens Check' provides 2,000 KRW cashback when spending 20,000 KRW or more combined on buses and subways, and 1,000 KRW cashback when spending 10,000 KRW or more at convenience stores, bakeries, and fast food outlets. Hana Card's 'Little Friends Teenager Check Card' also offers cashback benefits up to 5,000 KRW per month at convenience stores, bookstores, and bakeries. Both cards have a previous month usage requirement of 100,000 KRW. Since these are cards exclusively for teenagers, the usage requirements are relatively low.

Competition in financial services related to teenagers is intensifying. On the 19th, Kakao Bank introduced 'Kakao Bank Mini,' a prepaid electronic payment method that can only be opened by teenagers aged 14 to 18. An industry insider said, "The usage amount of teenage check cards is still minimal, so it cannot be considered a profitable market yet," but added, "Since teenagers are potential future customers, competition to provide differentiated financial services to them will become even fiercer."

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