Research Article
A Case Study on the Export of Card Payment Processing by BC Card
1 Dongguk University
Published: January 2017 · Vol. 21, No. 1 · pp. 57-82
Full Text
Abstract
This study examines a case on the export of card payment processing by BC Card. Through the detail explanations about an entire process to win a project on card acquiring, including partner selection, bid proposals, on-site examination, deep dive session, contract negotiation, and conclusion of a contract, this study suggests the meaningful implications to the credit card companies that plan to knock on overseas market. Judging a domestic card market is full of opportunities and potentials, BC Card tried to tap global markets and decided to hit Indonesia that is a country with fifth largest population in the world and with the low percentage of payment card usage on family expenditure. BC Card’s relationship with Bank Mandiri stems from the year 2011, when BC Card won Bank Mandiri’s consulting project on card acquiring. After the consulting project, BC Card has competed with 10 global processing companies for over a course of one year to finally be selected as the priority negotiation partner in Bank Mandiri’s acquiring processing project bidding in 2014. This would not have been possible were it not for BC Card’s 30-year business knowhow in Korea and ICT capacity of KT, BC Card’s holding company. MTI, a joint venture owned by BC Card and Bank Mandiri was built in 2016, and will begin the credit card processing business from the second quarter of 2017 in Indonesia.
