With the Increase in Contactless Transactions... Last Year’s Card Approval Amount Nears 1000 Trillion Won
Likely to Easily Surpass 1,000 Trillion This Year
[Asia Economy Reporter Yu Je-hoon] Due to the increase in non-face-to-face transactions amid the COVID-19 pandemic, the total card approval amount last year nearly reached 1,000 trillion won.
According to the Credit Finance Association on the 5th, the total card approval amount last year was 977.1 trillion won, an increase of 10.3% compared to the previous year. Credit card approvals rose 11% to 762.5 trillion won, and check card approvals increased 9.1% to 210.9 trillion won, respectively.
The card approval amount has been increasing annually, with 810.7 trillion won in 2018, 856.6 trillion won in 2019, and 885.7 trillion won in 2020. The related industry attributes this trend not only to the development of various IT technologies leading to a higher preference for card payments over cash but also to the significant rise in non-face-to-face transaction demand since 2020 due to COVID-19.
In fact, according to a survey by the Credit Finance Association, card approval performance increased notably in industries closely related to consumer life. In the fourth quarter of last year alone, card approval amounts increased by 14.9% in wholesale and retail, 38.3% in transportation, and 18.1% in accommodation and food services, among most consumer-related industries. The Credit Finance Association explained, "In wholesale and retail, the increase in non-face-to-face and online purchases continues, and sales recovery in department stores, clothing, and vehicle fuel is ongoing, which contributed to these results."
Hot Picks Today
"Stocks Are Not Taxed, but Annual Crypto Gains Over 2.5 Million Won to Be Taxed Next Year... Investors Push Back"
- "Don't Throw Away Coffee Grounds" Transformed into 'High-Grade Fuel' in Just 90 Seconds [Reading Science]
- Signed Without Viewing for 1.6 Billion Won... Jamsil and Seongbuk Jeonse Prices Jump 200 Million Won in a Month [Real Estate AtoZ]
- [Breaking] President Lee: "Sharing operating profit before taxes are deducted?... I don't understand"
- "Even With a 90 Million Won Salary and Bonuses, It Doesn’t Feel Like Much"... A Latecomer Rookie Who Beat 70 to 1 Odds [Scientists Are Disappearing] ③
The card industry expects the card approval amount to easily surpass 1,000 trillion won this year. With the prolonged COVID-19 pandemic making non-face-to-face transactions a daily routine and the elderly gradually joining this trend, the atmosphere is favorable. An industry official stated, "Due to the impact of COVID-19, demand for non-face-to-face payments has increased, and with disaster relief funds being distributed, the customer base using cards has expanded further," adding, "This year, the total approval amount will easily exceed 1,000 trillion won."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
