Shinsegae Duty Free has introduced a groundbreaking service for foreign tourists visiting Korea.
On June 24, they launched the country's first cross-border credit card installment option at their Myeong-dong flagship store. This new system, developed with fintech firm DealMe and using Visa's NanuPay network, allows tourists to split payments over several months using their own credit cards, right at the point of sale. The service is initially available to Vietnamese tourists, with plans for expansion.
Behind this strategic move are several key factors. First is the powerful recovery of inbound tourism. Korea saw over 2 million foreign visitors in a single month this spring, and spending by foreigners in Seoul has surged. With foot traffic in shopping districts like Myeong-dong rebounding, there's a clear opportunity to capture this growing demand. Offering installments can encourage shoppers to purchase higher-priced items they might otherwise hesitate to buy.
Second, the competitive environment in the duty-free industry is heating up. Both Shinsegae and its main rival, Shilla Duty Free, have returned to profitability. In this climate, providing a unique and convenient payment option like this becomes a crucial way to stand out and attract more customers. It’s a smart investment to improve the shopping experience when you have the financial room to do so.
Third, favorable economic conditions are providing a tailwind. The Korean won has weakened against the US dollar this year, which effectively makes Korean goods cheaper for many foreign visitors. This FX tailwind boosts their purchasing power, making an installment plan even more attractive for big-ticket items like luxury bags or cosmetics.
Finally, this initiative aligns perfectly with both technological readiness and government policy. The payment system was already piloted successfully with Visa and DealMe in 2025, reducing the risk of this full-scale launch. Moreover, the Korean government is actively promoting policies to enhance tourist convenience, including payment systems, as it aims to attract 30 million visitors by 2028. Shinsegae's move is a timely response to all these converging trends.
- Cross-border payment: A transaction where the buyer and seller are in different countries. This service allows a Vietnamese tourist's card to be processed for installments by a Korean retailer.
- AOV (Average Order Value): The average amount of money each customer spends per transaction. Retailers use installment plans to increase AOV.
- Fintech: Short for financial technology, it refers to technology used to improve and automate financial services. DealMe is a fintech company in this context.