Companies Entering the Point Market
FinTech looks to point programs to attract customers
The ASSEMBLE Protocol is a blockchain-based global point integration platform that exploits ASM utility tokens, whilst establishing a business ecosystem that can integrate, utilize existing points and miles with point providers, consumers, and retailers.
Hello, dear readers!
We have already discussed several times that while the size of the point market grows every year, customers are still dissatisfied because so many points expire before they can be used. Therefore, companies are trying to find new ways for customers to use their points, despite the fact that points are considered liabilities to companies. In today’s article, we’re going to look at some of the companies entering the point market and a few of their strategies for success.
Growing Point Market
According to data released by the Korean Consumer Agency and Statistics Korea, the domestic point market was worth about 20 trillion KRW last year. Companies are establishing or reorganizing their own point system to attract new customers and increase the loyalty of existing users every year. Companies try to attract customers with events and promotions to lock them into their programs.
Amid fierce competition in the point market to win the hearts of customers this year, financial and FinTech companies are also paying attention to points. They are looking for innovative ways for customers to more conveniently and effectively use their points. In particular, Hana Card, Shinhan Investment, Viva Republica (Toss), and Kakao Pay have drawn attention.
Hana Card & Shinhan Investment Launch Point Products
The financial sector has launched products that utilize points. In particular, Hana Card has released the Hana Money debit card and Shinhan Investment launched an overseas “stock-back” service. Both have been designated as innovative financial services by the Financial Services Commission.
Hana Card has released the Hana Money debit card that can be used by all merchants that accept Hana Money (Hana Card’s point). The Hana Money debit card is a mobile-only card and is a “point-based debit card” product. It was selected as an innovative financial service by the Financial Services Commission in October of last year.
Hana members have various options to refill their balance if they have an insufficient amount of Hana Money when making a payment. They can pay to add points to their account, switch to affiliate points, or use hybrid services (when making a transaction up to 300,000 KRW). Even if someone doesn’t have a bank account, they can pay at all credit card merchants by connecting their Hana Money debit card to their Hana Membership. They can register on the Hana Members app and will be able to use it right away.
Shinhan Investment also introduced its Overseas Stock-back Service, which was designated as an innovative financial service by the Financial Services Commission in March. It is a service that allows users to invest in overseas stocks using mileage, cashback, and affiliate points. Users can even invest in fractional shares thanks to Shinhan Investment’s ability to purchase global blue-chip stocks in decimal units, such as 0.1 shares. It is useful to use “accumulated services” such as points, mileage, and cashback as funds for overseas stock purchases. These points might otherwise expire as customers often forget they have them or don't know how to use them. It’s a great service for consumers.
Toss & Kakao Pay Establish Point Systems
The FinTech industry is also focusing on increasing customer loyalty by establishing new point systems.
Viva Republica, which runs the mobile financial service Toss, recently established Toss Point, which is different from Toss Money. Toss Money refers to the money the user adds to their account, while Toss Point is a new point system that provides event rewards or cashback benefits when users make payments. Toss’s new point system is expected to increase the utilization rate of payment services on the app and participation in events.
Kakao Pay also launched its own point system, Kakao Pay Point, last month. People who use Kakao Pay Points can participate in events held by various services such as Kakao Pay’s payment, remittance, investment, insurance, and loan services, or receive rewards when using those services. The points can be used at any of Kakao Pay’s online affiliated stores.
As the point market is growing every year, companies are striving to attract customers to their point programs. In order to quickly enter the growing point market and allow our users to use their reward points on ASSEMBLE, ASSEMBLE 2.0 is being developed. Please stay tuned for more updates!
