As a boycott spreads over controversy surrounding "Tank Day" marketing, card companies partnered with Starbucks are increasingly likely to shoulder partner risk.
According to the financial industry on the 25th, Woori Card, which launched the "Star Travel Woori Card" on the 25th of last month, and Samsung Card, which launched the "Starbucks Samsung Card" last year, are watching the situation. However, cancellation moves are not yet pronounced, reports said. Shinhan Card had planned to launch a Starbucks co-branded card in the first half of the year but said it would reassess the launch timing in light of internal system checks and the fallout from the current situation. All three companies are reportedly not at the point of reconsidering their existing contracts.
Originally, Starbucks maintained an exclusive partnership with Hyundai Card for six years, then shifted strategy in the second half of last year to partner with multiple other card companies.
Recently, as major card companies have found it harder to secure profitability in their core business due to lower merchant fees and card loan regulations, they have rolled out private-label credit cards (PLCCs) by broadening partners to include mega brands such as Baemin and Musinsa, as well as big tech, financial firms, and luxury auto brands. Because PLCC projects effectively bind the two companies as a community, some note that if controversy arises at a partner, the risk can flow directly to the card company.