|EXA Systems introduces Hyundai Card's H-ALIS on its homepage. Courtesy of Hyundai Card, Exa Systems|
By Park Hyong-ki
Hyundai Card will provide its IT system for credit card transactions to Japan-based EXA Systems, an IBM subsidiary, the card company said Thursday.
The Japanese company will be using Hyundai Card's Hyundai-Advanced Library Card Information System (H-ALIS) to further develop the former's card infrastructure.
The partnership is in line with the Japanese government's efforts to create a "cashless society" and promote card payment settlements via offline and mobile systems ahead of the 2020 Tokyo Olympics and the 2025 Osaka Expo.
Japan's cash usage rate stands at 90 percent. In comparison, Korea's credit card usage rate is around 80 percent.
In 2018, Japan launched a public consultation committee called the Cashless Promotion Council.
Hyundai Card's IT system handles more than 150 million card transactions a month, the company noted.
It is able to deal with large purchases, sales and withdrawals in real time without interruption 24 hours a day, 365 days a year.
Also, the system can be flexibly reconfigured according to the specific needs of customers and products.
Hyundai Card said it is expected to see an increase in its revenue following the licensing sales of software packages and consulting services to the Japanese company.
"Given that the credit card business is closely related to the lifestyle and culture, as well as the financial characteristics of local consumers, there are risks when entering overseas markets," a Hyundai Card insider commented.
With its entry into Japan, Hyundai Card will further seek opportunities in other markets, using its technological capabilities. The firm has constantly indicated that it will have to become an IT company to stay competitive in the new digital age.
"Currently, many credit cards' IT systems in Japan are large so it is difficult to modify them or add new functions fast and flexibly," said Sato Masanori, a consultant at Buerger, an IT consulting firm.
"H-ALIS can be an alternative system that can make it possible for Japan to be ready for various changes in line with the country's cashless era."