“We hereby conclude our successful decade of our Hyundai Card M, and begin the innovative Hyundai Card Chapter Two strategy,” Hyundai Card chief executive Ted Chung told a news conference at the financial firm’s headquarters in Seoul.
|Hyundai Card CEO Ted Chung speaks in a news conference in Seoul on Monday. (Yonhap News)|
Dubbed the nation’s best-selling credit card brand, the old M series has amassed about 8 million holders since its 2003 debut. But its overly diversified credit rewards system restricted customers’ freedom under the company’s set catalogue, which the Hyundai executives called “abnormal.” Customers found having too many cards was a headache as well, the CEO said.
The new Chapter Two strategy runs on a two-track system of benefits, letting customers choose between credit points and cash back.
The “M, M2, M3 Edition 2” lineup is for “point favoritists.” These cards tally 0.5 to 2 percent of the expenses as “M points,” which can be spent like cash. Monthly card expenses over 1 million won ($864) give 50 percent more points.
The “X, X2” lineup is for “cash-back loyalists.” They return 0.5 percent for monthly card expenses between 500,000 won and 1 million won, and 1 percent for 1 million won and up.
Both lineups will be issued from July 1, replacing the older versions on the signup lists.
“The brand renewal will earn us more brand loyalists. High brand loyalty eventually entails greater market share,” said senior vice president and card business division head Won Suk-joon.
Won said Hyundai Card’s rival companies will be unable to copycat the Chapter Two project for months, as it requires time-consuming changes in technical systems and partnerships.
By Chung Joo-won