20 PLCCs Released This Year... Emerging as a Major Trend in the Card Industry After 6 Years

All 8 Major Credit Card Companies Launch
Fierce Competition to Secure Future Customers

[Asia Economy Reporter Ki Ha-young] Private Label Credit Cards (PLCC) have emerged as the dominant trend in the domestic card industry just six years after their introduction to the market. With fierce competition in the payment market due to the entry of big tech companies, card issuers are rushing to launch PLCCs to secure future customers, including the MZ generation (Millennials + Generation Z).

According to the card industry on the 10th, Shinhan Card held a business agreement ceremony to launch the 'GS Prime Shinhan Card' in partnership with GS Retail. The GS Prime Shinhan Card offers 2% GS&Points rewards on payments made at all GS Retail online and offline affiliates, including GS25, GS The Fresh (GS Fresh, GS Supermarket), GS Fresh Mall, Lalavla, and GS Shop, regardless of the previous month's spending. It focuses on core services without unnecessary additional benefits for GS Retail enthusiasts.

One of the representative products released by the card industry this year is the PLCC. All eight specialized card companies (Shinhan, Samsung, KB Kookmin, Hyundai, Lotte, Woori, Hana, BC) have entered the market. So far, 20 types of PLCCs have been launched. This is the largest scale since Hyundai Card first introduced the PLCC to the domestic market in 2015 with the 'Emart e-Card' in collaboration with Emart. The number of PLCCs has increased annually: 3 in 2017, 6 in 2018, 7 in 2019, and 14 in 2020.

The main driver of this year's PLCC boom is Shinhan Card. With the keywords global, premium, and MZ generation, Shinhan has released six PLCCs to date, the most among card companies. These include partnerships with Marriott, IKEA, LX Hausys, SK Rent-a-Car, and Amorepacific.

Hyundai Card, a pioneer in PLCCs, also introduced five PLCCs this year. Starting with the Socar Card in January, it launched the Musinsa Card, Hyundai Mobility Card, New Smile Card, and Genesis Card. The Hyundai Mobility Card and New Smile Card are upgraded versions of existing PLCC benefits, enhancing Blue Members points and eBay Korea membership-linked benefits, respectively.

Lotte Card has also expanded cooperation with digital and fintech companies, releasing various PLCCs this year. Starting with the Cash Note Lotte Card, it launched the Straw Card, a Bank Salad PLCC, and the Refresh Card, a Fink PLCC.

Samsung, KB Kookmin, and BC Cards entered the PLCC market for the first time this year. Samsung Card introduced the Kakao Pay Card in May and launched the Lotte World Card this month. KB Kookmin Card released Coffee Bean and Wemakeprice cards, while BC Card launched its first PLCC, the K Bank Simple Card, last month.

More PLCC launches are expected in the second half of the year. Hyundai Card's Naver PLCC, scheduled for release this month, is a prime example. Shinhan Card also plans to launch a PLCC within the year in collaboration with Weverse Company, a global fandom platform company where BTS and others are active. KB Kookmin Card will introduce PLCCs specialized for Happy Point and Merge Point in the second half.

An industry insider said, "From the card companies' perspective, PLCCs have the advantage of sharing costs and revenues with partners, reducing initial expenses, and acquiring diverse customers." They added, "The various big data obtained through partnerships also helps in promoting new businesses such as comprehensive payment services in the future."

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