[In-Depth Review] Credit Cards After the End of COVID-19

Professor Kim Jong-bae, Department of Business Administration, Sungshin Women's University (President of the Credit Card Association)

"As of today, we officially declare the end of COVID-19." This is the news we truly want to hear. We sincerely hope to return to the 'life of the past'?going out without masks, meeting people without fear of infection, and traveling anywhere at any time. It is difficult to predict exactly when we will hear such news, but judging from recent updates on vaccines and treatments, it seems not too far away.

Over the past year, the conveniences of modern civilization have helped suppress or mitigate the devastating power of COVID-19. Credit cards, which first appeared in 1949 and have become part of our lives, have also played their role faithfully. Features such as contactless payments, vast accumulated data, and rapid network technologies have significantly aided in blocking virus transmission by minimizing face-to-face contact, enabling swift government policy planning and execution, and tracing the movement paths of confirmed and exposed individuals.

COVID-19 has not only threatened our lives and health but also caused considerable ripple effects across the economy and society. Consumer sentiment has contracted, and many daily activities have been reduced. As a result, most companies and households have faced difficulties. Card companies, closely linked to economic conditions, business activities, store operations, and household consumption, have also encountered challenging circumstances. Although card companies are devising various measures such as developing antibacterial cards coated with antimicrobial films and creating card products integrated with services gaining attention during the COVID-19 situation, it remains difficult to lift the massive curtain cast by the pandemic.

However, in any environment, there are always companies that perform better and those that perform worse. Companies that fully understand the nature and ripple effects of COVID-19 and respond proactively are achieving better results. The same applies to the future market after the end of COVID-19. Companies that accurately predict the changed market and consumer landscape and respond proactively will undoubtedly perform better than those that do not. In conclusion, predicting and understanding the market situation after the end of COVID-19 is crucial. At this point, it is difficult to precisely forecast the market patterns post-COVID-19.

But some things are predictable. There will be a short-term explosive increase in sales in the previously suppressed consumption sectors, a recurrence of social negative incidents and accidents that had decreased due to COVID-19, and selective persistence of convenience. Experiences with COVID-19 have changed perceptions and values about life. These thought and behavior systems will influence patterns of money and time consumption for a short period of months or even several years. Organizations and members within the credit card industry ecosystem should start envisioning the future market now, predicting not only the broad framework but also the details.

On car side mirrors, there is a phrase: "Objects in mirror are closer than they appear." We can say, "The future is closer to us than we expect." If we are well prepared, we will not be startled no matter what form the future suddenly takes. Extinguishing the 'urgent fire' of COVID-19 is certainly a pressing task now. At the same time, it is important to observe what events will unfold in the changed era and prepare in advance. Although the timing is uncertain, COVID-19 will definitely end. We must complete the assignment of 'preparing for the post-pandemic market.' Aren't we all too familiar with what happens to students who do not do their homework?

[Kim Jong-bae, Professor, Department of Business Administration, Sungshin Women's University]

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