Starbucks and Hyundai launching its own credit card
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South Korean conglomerate Hyundai’s credit-card subsidiary Hyundai Card is collaborating with Starbucks to launch a private-label credit card.
The card will be made available later this year with marketing and operations are taken care of by the local issuer. Customers bearing the card will be eligible for all rewards offered by Starbucks on top of regular credit functions and will enjoy optimized benefits from both firms.
“Along with the private-label credit-card product, we will spur the development of customized services based on our big data,” company officials said.
The partnership marks Starbucks’ first such private-label alliance within the territory, while Hyundai has previously set up such agreements with E-mart, eBay, Costco, GS Caltex and Korean Air, among others.
Questions & Answers
Q.Which company will be responsible for the marketing and operations of this new credit card?
Which company will be responsible for the marketing and operations of this new credit card?
The local issuer will be responsible for both the marketing and operational aspects of the private-label credit card in South Korea.
Q.What advantages will customers gain by using this new credit card?
What advantages will customers gain by using this new credit card?
Customers using the card will receive all the usual Starbucks rewards, plus general credit functions and tailored benefits from both Starbucks and Hyundai Card.
Q.Has Starbucks previously entered into this type of private-label credit card partnership?
Has Starbucks previously entered into this type of private-label credit card partnership?
No, this collaboration represents Starbucks' first private-label credit card alliance within the South Korean territory.
Q.How will Hyundai Card utilise its data in connection with this new product?
How will Hyundai Card utilise its data in connection with this new product?
Hyundai Card officials stated that they will use their big data to drive the development of customised services alongside the new private-label credit card product.
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