Shinhan to make credit card for use in Korea and JapanShinhan Card said yesterday that it plans to launch a domestic-use only credit card that can be used in Japan with the services of Visa or Mastercard later this year.
The Korean credit card issuer said it has signed an agreement with Japan’s NTT DATA. NTT DATA is a credit payment service and subsidiary of Japan’s NTT Group. More than 1,300 stores use its system.
Shinhan Card said the agreement will be good for customers and the company.
Clients will not have to pay the 5,000 won ($4.81) annual membership that is charged by Visa and Mastercard but will instead pay the domestic-use only credit card charge of 2,000 won.
The company estimated that roughly 200 billion won in membership charges is paid per year to the global brands.
Shinhan estimated that the new card will save 700 million won on its commission payment each year. There are currently more than 70 million international credit cards with Visa or Mastercard services in Korea, 86 percent of which have never been used overseas.