[Click eStock] "ICKE, Entry into the Global Contactless Payment Market"

[Asia Economy Reporter Hyunseok Yoo] KTB Investment & Securities analyzed on the 31st that IC Key is making progress in supplying payment systems to global companies following the completion of VISA certification. No investment opinion or target price was provided.

IC Key, established in 1998, is a specialized developer and manufacturer of smart cards and card IC chips. It has recently secured payment systems as a new business.

Jae-yoon Kim, a researcher at KTB Investment & Securities, stated, "This month, IC Key, together with its spin-off company Ant&B in the United States, developed Cellfie, which obtained VISA's Tap2Phone mPOS certification, marking the start of its entry into the global payment market." He added, "The VISA certification for Cellfie is an EMV level 2 mPOS certification, representing the world's first mobile payment system that allows personal devices (smartphones) to replace mPOS." He further explained, "IC Key develops and supplies the SCMS (Security Certification Management System) for the Cellfie payment system and will receive payment fee shares and royalties generated from Cellfie."

He noted, "IC Key is currently discussing the supply of the Cellfie payment system with approximately 60 global companies and is conducting tests with global banks, car-sharing services, restaurant chains, and retailers." He added, "With the completion of this VISA certification, rapid contracts with the companies undergoing testing are expected."

In particular, Researcher Kim expressed expectations that Cellfie will establish itself as a global mainstream payment system. He said, "VISA's recent active acquisitions and collaborations with fintech startups are also positive for the expansion of the company's Cellfie payment system." He evaluated, "VISA has been focusing on payment system innovation by consecutively acquiring fintech startups such as Payworks, Verifi, and Plaid in response to platform companies like Facebook entering the payment market." He emphasized, "Cellfie is judged to have a high potential to become a mainstream payment system for global companies in the future, due to its fee reduction and enhanced security features."