Unlike Japan, Korea can use credit cards anywhere, making it a market that has effectively achieved 100% cashless. That's why, from a card company's perspective, Korea is a dream market. This year, we plan to run a promotion that changes the partner merchants with benefits every month to match Koreans' travel routes in Japan, to increase our Korean membership.
Watanabe Takahiko, head of JCB Card's Korea office, said this in a meeting with ChosunBiz in mid-month. Watanabe said, Over the past two to three years, people-to-people exchanges focused on travel between Korea and Japan have increased significantly. Korea is a truly important market, and now is the right time to focus on business.
Founded in 1961, Japan's JCB Card is one of the largest acquirers in Japan. It is also known as one of the few card companies that simultaneously conducts issuing, acquiring, and brand businesses. As of September last year, JCB Card had 175.5 million members and about 71 million merchants worldwide.
The issuing business, a major source of revenue for card companies, refers to earning fees by issuing cards. The acquiring business handles settlement and payments between merchants and card companies. The brand business provides JCB Card's global payment network to partner card companies. Through this, cards issued by partners can be used at JCB Card merchants worldwide.
After establishing a corporation in Korea in 2009, JCB Card has signed partnership agreements with seven domestic standalone card companies to date. As a result, JCB cards can be used at most Korean merchants.
Watanabe is planning new measures to expand Korean membership. Starting in July, JCB Card plans to run a promotion for Korean travelers under which the participating local merchants in Japan offering benefits change every month. If Korean members pay at participating local merchants in Japan, they will receive 30% cashback. Watanabe said, We will leverage our unique strength as a local Japanese brand to secure Korean members.
Watanabe earned a bachelor's degree in international studies from Tsukuba University in 1989 and joined JCB Card in 1993. Over the following 33 years, Watanabe worked across human resources, the co-branded card division, the international affairs division, and as managing director for Micronesia. The following is a Q&A with Watanabe.
─ What businesses does JCB Card operate?
We focus on card issuing and acquiring, and the brand business centered on Japan. We originally did only issuing and acquiring, but we are now expanding the brand business in overseas markets. There are very few card companies that do all three.
─ What does the Korean market mean to JCB Card?
Over the past two to three years, many Koreans have traveled to Japan and many Japanese have traveled to Korea. With travel exchanges increasing significantly, we expect the frequency of credit card use to rise. In that regard, we see the Korean market as very important right now.
─ What are the advantages of the Korean market compared with Japan?
In Korea, the cashless culture has taken root at nearly 100%, making it a country where you can use credit cards anywhere. In Japan, you still cannot use cards everywhere. From a card company's perspective, the environment is so well established in Korea that it feels like a dream country.
─ Are there any markets you're watching that you haven't fully entered yet?
Many travelers from Southeast Asian countries are also coming to Japan now. We are devising strategies so that Southeast Asian tourists use JCB cards more in Japan. Our main tasks are to increase JCB card issuance in the Philippines, Thailand, Malaysia and Indonesia, and to enable more use not only in Japan but also within Korea.
─ What do you want to accomplish this year?
To make Koreans naturally think, I should bring my JCB card when going to Japan. Conversely, I want Japanese travelers to think, I should take my JCB card when going to Korea. The goal is to create an environment where travelers going back and forth between the two countries naturally carry and use JCB cards.