Asia: South Korean firm launches its first credit card in Indonesia

The credit card market in Indonesia is welcoming another player with ShinhanIndo Card Hi-Cash’s entry in early February this year. Issued by Shinhan Indo Finance (SIF), the card aims at targeting millennials and offers four different types of credit cards. SIF had been processing its license to operate for the past two years and Indonesia’s Financial Services Authority only granted approval earlier this year. The card collaborates with Indonesia’s merchants under Indomobil Group and Asuransi Central Asia (ACA) as well as K-Pack from South Korea. SIF’s Vice President, Tan Kim Piauw, expects the card to reach 80,000 users and record IDR 500 billion transaction in 2017 (USD37 million) driven by the growing middle class in the country.

According to RFi Group data from the Indonesia Priority & Retail Banking Council, credit card penetration has been increasing in the past two years with nearly 1 out of 2 banked customers in Indonesia owning a credit card.

According to RFi Group data from the Indonesia Priority & Retail Banking Council, credit card penetration has been increasing in the past two years with nearly 1 out of 2 banked customers in Indonesia owning a credit card. Their usage has been more popular as well, with 40% using credit cards as a payment method in the past year – an increase compared to six months ago. Shinhan’s entrance into Indonesia card market is aligned with business realities on the ground and is likely to resonate with the market.


Source: RFi Group – Indonesia Priority & Retail Banking Council (H2 2016)

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