[Asia Times = Shin-do Reporter] With Toss Bank joining Shinhan Card and KB Kookmin Card, the mobile payment market is expected to be shaken up in the first half of this year. There are high expectations that financial authorities will approve the operation of Apple Pay simultaneously, leading to a "game of nerves" surrounding the service.
On the 15th, according to the card industry, Shinhan Card and KB Kookmin Card are accelerating preparations for the introduction of Apple Pay. Shinhan Card is said to have completed most of the testing and construction for Apple Pay integration and is ready to provide the service once it receives approval from financial authorities.
KB Kookmin Card has also finalized its preparations for operating the Apple Pay service and is awaiting approval from financial authorities. KB Kookmin Card has completed payment integration support with Apple and is expected to quickly support the Apple Pay service after approval.
Recently, Toss Bank also joined the introduction of Apple Pay. Toss Bank applied for a review of the Apple Pay introduction agreement with financial authorities last November and is awaiting the results. If adopted, it will be the first case of an internet-only bank introducing Apple Pay in Korea.
The introduction timing of these three companies is expected to be as early as next month. There are also opinions that predict the introduction in the first half of this year. Financial authorities are examining consumer convenience and service provision direction through the introduction of Apple Pay.
"Usually, when a company applies for service operation, it takes about 2 to 3 months for approval," said a financial industry official. "Despite the applications being submitted last year, the fact that financial authorities are taking a long time suggests they are carefully considering the profitability and effectiveness of expanding the service."
Apple Pay is showing results by improving the mobile payment environment for iPhone users, which is why many financial institutions are rushing to introduce it.
In the case of Hyundai Card, currently the only company in Korea providing Apple Pay services, 355,000 cards were issued within one month after launching Apple Pay in March 2023. This figure is more than 2.5 times higher than the same period last year (138,000 cards). Among new members, 91% of iPhone users registered for Apple Pay.
Hyundai Card's overseas payment amount also increased due to the advantage of applying a common payment method. Last year, Hyundai Card's overseas credit sales amounted to 3.9379 trillion won, up 11.7% from the previous year (3.5253 trillion won). Hyundai Card has maintained the top spot for three consecutive years.
The marketing effect has also been proven. 70% of Apple Pay users are young people in their 20s and 30s. There is a growing expectation that if these users, who are expected to have high earning potential in the future, actively use Apple Pay, it could lead to long-term payment demand.
However, the financial industry is struggling with Apple's commission policy and the possibility of applying commissions to Samsung Pay. Currently, Apple is known to charge a 0.15% commission per Apple Pay transaction.
Samsung Pay has stated its position that it will apply payment commissions in line with fairness when Apple Pay is introduced. If Samsung Pay, which has maintained a free policy, decides to switch to a paid model, financial institutions may face the burden of paying commissions to both Apple and Samsung.
The financial industry believes that this factor also contributed to the financial authorities' hesitation in making a quick decision on the introduction of Apple Pay. It means they will carefully examine whether Apple Pay can increase consumer convenience and profitability before deciding to expand its adoption.
"Introducing Apple Pay requires discussions with not only Apple and applicants but also various stakeholders such as Samsung and banks," said a financial industry official. "The complex negotiation process is believed to be the reason for the delay in introduction."
To be continued
▶ Source: https://m.asiatime.co.kr/article/20260312500286#_enliple#_mobwcvr
