Convenience Stores, Marts, Department Stores, and Coffee Shops Gradually Adopt
Olive Young and Starbucks Still Hold Back... "Monitoring First"
On the 23rd, a customer is making a payment using Apple Pay at a coffee shop in Seoul. Photo by Jinhyung Kang aymsdream@
The distribution industry is rapidly adopting the Apple Pay service officially launched in South Korea.
Apple Pay is a contactless simple payment service that allows payments via mobile devices without physical cards through Apple devices such as iPhone and Apple Watch, based on Near Field Communication (NFC). On the first day of its official introduction in South Korea, the 21st, the number of card registrations exceeded one million in a single day, drawing significant consumer interest.
On the 23rd, the distribution industry equipped stores with Near Field Communication (NFC) terminals and completed software (SW) updates to start the Apple Pay service.
Currently, Apple Pay can be used at department stores such as Hyundai Department Store and Lotte Department Store, marts like Homeplus, and convenience stores including GS25, 7-Eleven, and CU. Lotte Mart has completed adoption in about 90% of its stores, with plans to finish the remaining 10% within this month.
However, for Shinsegae affiliates, Apple Pay is only available at the convenience store Emart24. Shinsegae Department Store and Starbucks, the number one coffee chain in South Korea, have not adopted it. They plan to monitor the situation for a period before deciding on future adoption. Olive Young also plans to review the market situation before deciding whether to adopt the service.
Coffee specialty stores such as Mega Coffee, Ediya Coffee, Twosome Place, and Paul Bassett are gradually adopting Apple Pay. Paik’s Coffee, operated by The Born Korea, was selected as a priority adopter by the first official Apple Pay service operator in South Korea and has been replacing unmanned terminals in stores and completing payment tests since last month.
The food service industry is similar. Domino’s Pizza became the first in the pizza industry to start Apple Pay payment services from this day.
SPC Group, which operates about 7,000 directly operated and franchise stores nationwide including Paris Baguette, Baskin Robbins, Dunkin, and Pascucci, launched Apple Pay payment services nationwide from the day before. Starting from the 29th, customers paying with Apple Pay will automatically earn SPC’s integrated membership service ‘Happy Point.’ Lotte GRS, which operates about 1,800 directly operated and franchise stores nationwide including Lotteria, Angel-in-us, and Krispy Kreme Doughnuts, also introduced Apple Pay from the day before.
The Apple Pay payment method is simple. When paying, double-click the side button on the Apple device, then hold the iPhone or Apple Watch close to the payment terminal to complete the contactless payment. All Apple Pay purchases are secure because they are authenticated via Face ID, Touch ID, or a unique dynamic security payment cryptogram generated each time.
To use it, open the Wallet app on the iPhone, tap ‘Add Card (+),’ and register a credit or debit card that supports Apple Pay. Apple Pay can also be used immediately if registered on Apple Watch, iPad, or Mac in addition to the iPhone.
Professor Eunhee Lee of Inha University’s Department of Consumer Studies analyzed, “For iPhone users, it is convenient not to have to carry credit cards separately, which will increase consumption in distribution. The success of Apple Pay settling in Korea depends on how many consumers can use it with high satisfaction at various points of sale.”
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