It is usually hard to make a hit product in the financial industry because, unlike TVs or cell phones, financial products can’t appeal using design or technology.

But BC Card Co., the nation’s leading credit card firm, has done it by catering to the need of frequent visitors to China and is now set to fully capitalize on the growing trade and personnel exchanges between Korea and China.

The product -- the BC-CUP Debit Card which the Korean firm introduced in May 2008 in partnership with China UnionPay -- allows cardholders to withdraw money from their Korean bank accounts using automatic teller machines that accept China Unionpay cards.

Cardholders of the card can also make purchases at shops across China that accept CUP cards.

This means a much wider access in China than users of global credit card brands such as Visa or Master, because China Unionpay is the nation’s sole bank-card payments processor and has the widest ATM network within the country. 

A model shows the BC-CUP Debit Card released in China. BC Card

BC Card has issued more than 810,000 BC-CUP cards as of the end of March, and the company expects new issuances to continue. It is regarded as a must-have item for Korean businesspeople and Korean students in China, company officials said.

The popularity of the product is attributable not only to its wide ATM access. It charges lower fees than international credit cards, BC Card explained.

Major global card firms such as Visa or Master charge users a 1 percent international transaction fee and about 7 percent currency conversion fee in addition, if the purchase is made in Chinese yuan. But, holders of the BC-CUP Debit Card don’t have to pay such fees, the Korean firm explained. The BC-CUP joint products are offered confined to debit cards. Credit cards and gift cards are also available.

As part of its efforts to expand overseas, BC Card has been expanding in China, in alliance with China Unionpay. It was the first Korean card firm to open a local unit in Beijing in May 2008. 





By Lee Sun-young (milaya@heraldm.com)