Bank-affiliated card issuers, propelled by ties with financial groups, are finding their footing challenged by corporate card players. With both profitability and safety metrics favoring corporate issuers, questions loom about a potential turnaround for bank-based card operators by 2026. Some industry observers even suggest that KRW-based stablecoins could provide a new turning point. As of end-September 2025, the delinquency rate stood at 1.9% for banks and 1.1% for corporates, underscoring the shifting competitive landscape.
As card companies jockey for a smaller market share, the world is transitioning toward stablecoins, sometimes described as a global payments paradigm shift. Plunging fee structures and looser lending have weakened core profitability, accelerating talk of KRW-stablecoin adoption and prompting investors to concede that there may be no easy exit. Fortunately, the early flurry around KRW-stablecoin discussions is giving way to greater stability, with card issuers and industry bodies coordinating more effectively.
The industry now views stablecoins as complementary to, rather than replacements for, existing payment networks. Rather than issuing coins themselves, market participants are focusing on interlinking diverse digital assets with card rails, creating an ‘intermediate infrastructure’ that could unlock new revenue streams. BC Card has emerged as a leader, signing a memorandum of understanding with Coinbase to develop and pilot domestic payments using USDC, signaling a notable usage case for KRW-stablecoins.
Some observers see the KRW-stablecoin path as offering opportunities for bank-backed card networks, particularly if a bank-led design gains traction. In response, banking groups are strengthening their organizational structures. KB Financial Group has formalized its stance by converting a stablecoin subgroup within its cryptocurrency response committee into a standing entity, while Hana Financial’s broad partnerships—connecting Circle (USDC issuer) and Dunamu’s international remittance reach—underscore aggressive strategic moves. With leadership changes at Woori Financial Group, a more systematic approach to an AI-stablecoin era is also on the agenda. A lending industry source notes that while stablecoins could substitute some card functions and pressure earnings, a bank-centered KRW-stablecoin market would leverage merchant networks and create synergies that could work to banks’ advantage.
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