Particular person abroad debit card fee quantities have surpassed 6 trillion gained on an annual foundation for the primary time. That is the results of the nice recognition of journey playing cards that don’t impose overseas alternate fee burdens.
In keeping with monetary trade insiders on Dec. 25, particular person debit and test card abroad utilization quantities have been tallied at 6.314 trillion gained by means of November this yr. This represents a 31.7% enhance in comparison with the identical interval final yr (4.795 trillion gained).
The hovering won-dollar alternate charge this yr has had an impression, however even contemplating this, the expansion development is steep. In keeping with the Financial institution of Korea, the common won-dollar alternate charge primarily based on the buying and selling customary charge final yr was 1,363.98 gained. Contemplating that it has been fluctuating within the mid-1,400 gained vary this yr, abroad debit card utilization is explosively growing.
This turns into extra obvious in comparison with abroad bank card utilization quantities. Particular person abroad bank card utilization quantities by means of November this yr have been 13.497 trillion gained, exhibiting solely a 2.6% enhance in comparison with the earlier yr.
The rise in abroad debit card fee quantities is interpreted because the affect of journey playing cards. Journey playing cards are debit-based playing cards that may be charged domestically and simply used for funds or withdrawals abroad. They’re gaining excessive recognition because of their excessive comfort and low overseas alternate and fee charges. Moreover, every card firm offers advantages resembling cashback and airport lounge entry, gaining excessive recognition by means of word-of-mouth amongst abroad vacationers. An trade insider stated, “Lately, many shoppers are on the lookout for journey playing cards with good advantages first earlier than touring to Japan or Hong Kong.”
Hana Financial institution and Hana Card’s Travelog test card, which has held the primary market share within the abroad debit card marketplace for 34 consecutive months, surpassed 10 million subscribers early this month. Customers can alternate 58 sorts of currencies free of charge by means of Hana Monetary’s life-style finance platform Hana Cash software. Abroad fee and utilization charges are additionally free.
The pursuit by late entrants can be fierce. Shinhan Financial institution’s SOL Journey Examine Card, launched in February final yr, just lately surpassed 2.7 million issued prospects and 5 trillion gained in home and abroad utilization quantities. Shinhan Financial institution has set a plan to take care of the prevailing 100% alternate charge preferential profit for 42 world currencies till the tip of subsequent yr. Particular rate of interest advantages for greenback and euro currencies for overseas foreign money deposit prospects linked to SOL Journey Playing cards will even be prolonged for a similar interval.
KB Kookmin Card, which operates Vacationers test card, is conducting differentiated advertising and marketing by specializing in particular well-known journey locations resembling Hong Kong and Macau. To commemorate the launch of the Macau version, KB Kookmin Card partnered with Melco Group, a consultant built-in resort operator in Macau, to supply a ten% immediate low cost when reserving Home of Dancing Water Present from this month by means of March subsequent yr. KB Kookmin Card additionally launched the Hong Kong version in partnership with the Hong Kong Tourism Board in September this yr.
The recognition of journey playing cards is predicted to proceed. The annual variety of vacationers this yr is projected to exceed 28.714 million, the document excessive from 2019.
