"Adieu, Card App"... Now the 'Pay' App is the Trend

Financial Supervisory Service Completes Apple Pay Terms Review... On Track for Year-End Launch
KB Kookmin Card Finalizes Unified Platform for Card Industry Including 'KB Pay'... Open Pay Also Accelerates

[Asia Economy Reporter Yu Je-hoon] As Apple's simple payment service 'Apple Pay' is entering the final countdown for its domestic launch, South Korean credit card companies are also accelerating their responses. They are completing the construction of a 'one platform' that integrates existing applications into a Pay app, and are speeding up efforts related to the long-delayed Open Pay.

According to the financial sector on the 6th, the Financial Supervisory Service has completed the review of the terms and conditions of Apple Pay submitted by Hyundai Card. A Financial Supervisory Service official stated, "There were no issues with the terms and conditions, so the review was completed," adding, "However, there are additional aspects to examine regarding financial consumer protection and personal information protection beyond the terms, so further review is underway."

Industry insiders expect Apple Pay to make its debut in South Korea within this year, considering the overall schedule. Previously, an image presumed to be Hyundai Card's new terms and conditions was leaked online, which indicated the service start date as the 30th of last month. There are also signs that various medium and large merchants are distributing and updating terminals that support Near Field Communication (NFC) payments. However, Hyundai Card maintains the position that "there is nothing to confirm at this time."

Following Samsung Pay, which rapidly expanded its reach based on Magnetic Secure Transmission (MST) technology, and Naver and Kakao Pay, which are quickly increasing market share based on their dominance in the existing mobile market, Apple Pay's domestic launch is entering the final countdown, prompting South Korean credit card companies to respond swiftly. First, card companies are accelerating the construction of the 'one platform.'

KB Kookmin Card has integrated all services previously provided on the MyData platform 'Liiv Mate' into KB Pay as of today. In October, they had already integrated the mobile app into KB Pay. The existing mobile app is scheduled to discontinue service on the 14th. Through this one platform construction, KB Kookmin Card plans to enhance customer convenience and build a comprehensive financial platform capable of personalized asset management and financial product recommendations by integrating Liiv Mate.

Other card companies are also finalizing their one app strategy. Shinhan Card revamped its simple payment platform Shinhan Play last year, upgrading it to a comprehensive financial platform. Additionally, Woori Card operates services integrated into the 'Woori WON' card app, Hana Card uses the '1Q Pay' app, and Samsung Card launched the integrated financial platform 'Monimo' under Samsung Financial Networks (Samsung Life Insurance, Fire & Marine Insurance, Securities, Card, Asset Management) earlier this year.

The long-delayed Open Pay is also showing signs of becoming visible. Open Pay is a simple payment platform that allows credit and check card products from other card companies to be used on individual card companies' payment platforms. Although the payment methods such as MST, NFC, barcode, or QR payment are no different from other simple payment services, it is considered a countermeasure against various simple payment services because it can expand the scope of each company's payment platform. The Open Pay alliance includes six companies: Shinhan, KB Kookmin, Lotte, Hana, Woori, NH Nonghyup, and BC Card.

According to the industry, some operators such as Shinhan Card, KB Kookmin Card, and Hana Card are preparing Open Pay at a level that could launch within this year. NH Nonghyup and BC Card are expected to join in early next year, and Woori Card, which joined Open Pay relatively late, is also reportedly building the Open Pay system aiming to start service within next year. A credit card industry official said regarding the one app strategy and Open Pay construction, "These are cards to respond as IT companies and big tech simple payment systems, including Apple Pay, are dominating the market," adding, "We are continuing discussions among card companies to release Open Pay early."