Article 11: 'National Support Fund' Distribution Begins... Card Companies Compete to Attract Customers with Convenience Services (Comprehensive)

Service Delayed This Morning but Smooth in Afternoon
Card Companies Introduce Various Convenience Services
Shinhan Card Launches App Push Service for Usable Merchants
Samsung Card Provides Merchant Search Service

[Asia Economy Reporter Ki Ha-young] As the payment process for the 'COVID-19 Coexistence National Support Fund' worth 11 trillion won begins, competition among card companies to secure users has also intensified. Although the commission revenue is not large, card companies are launching various convenience services to attract new customers and acquire consumption data.

According to the Ministry of the Interior and Safety and the credit card industry on the 6th, online applications for the National Support Fund through nine card companies (Shinhan, Samsung, KB Kookmin, Hyundai, Lotte, Woori, Hana, BC, NH Nonghyup Card), excluding Citibank, started from 9 a.m. today. In the first week of implementation, a day-of-the-week system is applied based on the last digit of the birth year. Today, people whose birth year ends in 1 or 6 can apply. Tomorrow, those whose birth year ends in 2 or 7 can apply. For example, people born in 1962 or 1977 can apply tomorrow.

This morning, the card companies' websites and applications experienced temporary access delays due to a surge in applicants. However, most services became smoothly accessible in the afternoon. A card industry official explained, "Since today is the first day of the National Support Fund application and it is the beginning of the month, many customers using general card services such as payment confirmation gathered, causing temporary access delays from 9 a.m. However, since most card companies took measures such as server expansion after last year's nationwide disaster support fund payment, the services have been operating smoothly without delays since the afternoon."

Coexistence National Support Fund Usable at Local Love Gift Certificate Merchants

The Coexistence National Support Fund is a disaster relief fund that about 88% of the population can receive 250,000 won per person. It can be received by choosing among credit cards, debit cards, prepaid cards, or local love gift certificates. For credit and debit cards, eligibility can be checked and applications can be made directly on each card company's website or app. The support fund is charged in the form of points starting the day after applying with a credit or debit card and can be used thereafter.

The National Support Fund can basically be used at merchants affiliated with local love gift certificates within the registered address area. Citizens residing in special cities or metropolitan cities can use it at local gift certificate merchants in those cities, while those residing in provinces can use it at merchants in the corresponding city or county within their detailed address. Typical places where it can be used include traditional markets, neighborhood supermarkets, restaurants, hair salons, pharmacies, optical shops, clothing stores, academies, hospitals, and franchise merchants (convenience stores, bakeries, cafes, chicken restaurants, etc.).

However, the franchise coffee shop Starbucks is operated as a directly managed store, so the support fund cannot be used there. Also, the National Support Fund cannot be used at department stores, complex shopping malls, large marts, corporate supermarkets, duty-free shops, foreign-affiliated large company stores, directly managed stores of large electronics companies, directly managed franchise stores of large companies, large delivery apps, online malls, or home shopping. Although the support fund cannot be used on delivery apps such as Baedal Minjok and Yogiyo, it can be used if payment is made on-site through the restaurant's own terminal.

Card Companies Provide Various Convenience Services to Attract New Customers

Card companies are introducing various convenience services to attract new customers. Shinhan Card offers the 'Our Neighborhood Support Fund Store Notifier' service, which sends push notification messages via the Shinhan Payfan app about merchants near the user's home where the support fund can be used. Among customers who apply for the Coexistence National Support Fund, those who agree to location-based services will receive messages from the 8th when entering nearby commercial areas based on the registered home address in Shinhan Card, allowing them to check support fund merchants on a map.

Samsung Card operates a merchant search service. The search screen displays the region where the customer applied for the National Support Fund at the top, and users can conveniently search for merchant names, addresses, and contact information by entering the desired region's merchant name. KB Kookmin and Woori Cards provide services that display merchants where the National Support Fund can be used on a map, and BC Card is also planning to introduce a National Support Fund usage guide service. Hyundai Card has segmented the app related to the National Support Fund application into stages such as eligibility inquiry, application inquiry/change, usage inquiry, and usage location inquiry to enhance user convenience.

The card industry expects that commission revenue will not be high since the support fund usage locations are local love gift certificate merchants. Small and medium-sized merchants with annual sales under 3 billion won receive a preferential card commission rate of 0.8% to 1.6%. During last year's nationwide disaster support fund, card companies suffered losses of about 8 billion won. According to the office of Yoon Chang-hyun of the People Power Party, card companies' commission revenue from the support fund paid between May and August last year was 97.4 billion won, while operating expenses reached 105.4 billion won.

However, to attract more customers in terms of acquiring new customers, activating dormant customers, and obtaining consumption data, card companies are providing convenience services. An industry official said, "Due to the financial authorities' request to refrain from marketing, cashback or coffee coupon giveaways have completely disappeared. Instead, we are focusing on providing convenience services such as usage location guidance."

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