Financial Supervisory Service Completes Apple Pay Terms Review... Launch Expected Early Next Year

[Image source=Yonhap News]

[Asia Economy Reporter Seongpil Cho] Apple’s contactless payment system, Apple Pay, is expected to be introduced in South Korea early next year, primarily targeting large retail card merchants.

According to financial authorities and the card industry on the 5th, the Financial Supervisory Service (FSS) completed the review of Apple Pay’s terms and conditions on the same day. An FSS official stated, "There were no issues with the terms, so the approval process was completed," but added, "However, there are additional matters to review beyond the terms, so the service cannot be launched immediately."

It is reported that financial authorities are further examining issues related to the distribution of Near Field Communication (NFC)-compatible credit card terminals necessary for the Apple Pay service. Among the 2.9 million credit card merchants in South Korea, only about 10% currently have NFC terminals compatible with Apple Pay.

The industry expects that if the Apple Pay service is fully launched domestically, there will be concerns over the cost burden related to the distribution of compatible terminals.

Since financial authorities are reviewing additional matters beyond the terms regarding Apple Pay, the launch of the service within this year remains uncertain. However, the card industry anticipates that the official service will be available early next year.