The rise of online grocery shopping is altering the criteria for selecting credit cards. While many cards offer discounts of up to 10-15% on online shopping, factors such as previous month’s spending and monthly discount limits make it challenging to fully benefit from these advertised rates.
According to a survey conducted by the credit card platform Card Gorilla, 54.2% of respondents reported that they primarily shop online through platforms like Naver, Kurly, and Coupang. This figure is approximately 2.7 times higher than the 19.9% who prefer large supermarkets.
Convenience stores and specialty food markets followed with 7.9% and 7.5%, respectively. Department stores accounted for 4.4%, corporate supermarkets for 3.9%, and traditional markets for just 2.1%. The number of respondents choosing online shopping surpassed those opting for all offline retail channels combined.
Go Seung-hoon, CEO of Card Gorilla, noted, “The preference for online shopping, which is not limited by time and place, is increasing. We expect the utilization of shopping memberships and mobile payment benefits to rise in credit card usage as well.”
The online grocery shopping market is also expanding. According to the National Data Agency, the transaction volume for online food shopping reached approximately 52.3 trillion won last year, marking a 10.4% increase from the previous year. Searches for online shopping benefits on Card Gorilla’s customized card search increased by 16% in the first half of this year compared to the second half of last year.
Cards that offer online shopping benefits are categorized into those with high discount rates but strict conditions based on previous month’s spending and monthly discount limits, and those with lower rewards but no additional conditions.
For instance, Woori Card’s ‘Card of the Standard 2 Shopper’ and Shinhan Card’s ‘Discount Plan+’ both provide a 10% discount on online shopping expenditures. However, both cards have a monthly discount cap of 15,000 won for the lowest spending tier. Thus, even if a user spends 300,000 won on online groceries, the actual discount may only reach a maximum of 5%, contrary to the advertised 10-15%.
Woori Card offers a 10% discount at Coupang, Naver Plus Store, and Market Kurly for users who spend over 500,000 won the previous month, with an additional 5% discount on weekdays. The annual fee is 28,000 won.
Shinhan Card has a lower previous month’s spending requirement of 400,000 won but limits discounts to 50,000 won per transaction, available once a day and up to five times a month at Naver Plus Store, Coupang, and SSG.com. The annual fee is 50,000 won, and a 30,000 won grocery cashback is provided once a year, applicable only to large supermarket purchases, not online transactions.
In contrast, the ‘Hyundai Card Zero Up’ has no previous spending requirements or reward limits, but offers lower reward rates. Users earn 1.2% on domestic and international transactions, which increases to 2.4% for purchases over 100,000 won at online malls and large supermarkets. Spending 300,000 won can yield between 3,600 and 7,200 points, with an annual fee of 30,000 won.
Therefore, it is essential to consider not only the advertised discount rates but also whether the frequently used shopping sites are eligible for discounts, if the previous month’s spending can be met, and what the monthly discount limits are. Different cards have varying eligible merchants, with Woori Card including Market Kurly and Shinhan Card including SSG.com.
Additionally, benefits may not apply if transactions are processed through external sites or under the name of mobile payment or payment agency companies. Membership fees and gift card purchases are often excluded from discounts, making it necessary to verify specific conditions before making payments.
* This article has been translated by AI.
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