PLCC Craze Sweeping the Card Industry... 20 Types Released This Year (Comprehensive)

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

On the afternoon of the 10th, Lim Young-jin, President of Shinhan Card (right), and Heo Yeon-soo, Vice Chairman of GS Retail, attended a signing ceremony held at the Shinhan Card headquarters in Jung-gu, Seoul, and posed for a photo.

[Asia Economy Reporter Ki Ha-young] Private Label Credit Cards (PLCC) have emerged as a major trend in the domestic market six years after their introduction. With fierce competition in the payment market due to the entry of big tech companies (large information and communication enterprises), card companies are rushing to launch PLCCs to reduce costs through partnerships and secure future customers, including the MZ generation (Millennials + Generation Z). However, there are also criticisms that the boundaries between PLCCs and co-branded cards are unclear, making it difficult for consumers to feel the benefits.

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

A Total of 20 PLCCs Launched This Year

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

The main player in this year's PLCC boom is Shinhan Card. With the keywords global, premium, and MZ generation, it has launched six PLCCs so far, the most among card companies. These include partnerships with Marriott, IKEA, LX Hausys, SK Rent-a-Car, and Amorepacific.

Hyundai Card, a pioneer in PLCC, also introduced five PLCCs this year. Starting with the Socar Card in January, it released 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, launching various PLCCs this year. Starting with the Cash Note Lotte Card, it introduced 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 launched the Kakao Pay Card in May and released the Lotte World Card this month. KB Kookmin Card introduced Coffee Bean and Wemakeprice cards, while BC Card launched its first PLCC, the K Bank Simple Card, last month.

More PLCCs Expected in the Second Half from Naver, Weverse Company, Merge, and Others

Various PLCC launches are also expected in the second half of the year. The Naver PLCC, to be released by Hyundai Card this month, is a representative 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 in Happy Point and Merge Point in the second half.

From the consumer's perspective, there are criticisms that the boundaries between PLCCs and co-branded cards are unclear. Although they offer specialized benefits under the partner's name, consumers find it hard to perceive significant differences from existing co-branded cards. From the card companies' standpoint, PLCCs differ from co-branded cards in that costs and revenues are shared with partners, but standards vary by company and distinctions depend on the terms of agreements. Hyundai Card, which first introduced PLCCs to Korea, emphasizes data. Jung Tae-young, Vice Chairman of Hyundai Card, recently stated on Facebook, "Brands creating PLCCs are not just adding default benefits listed in card guides but aiming to elevate the level of selective benefits on the backend through data analysis," adding, "Hyundai Card is unrivaled in the realm of data curation and algorithms that drive data."

An industry insider said, "For card companies, PLCCs have the advantage of reducing initial costs and acquiring diverse customers by sharing costs and revenues with partners," adding, "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.