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South Korea’s financial regulator confirms it’s considering launching Apple Pay service • CableFree TV

Apple is poised to launch its Apple Pay service in South Korea, one of the fastest growing countries in the world for cashless services, but at the moment it is not being used by either Apple or the other major player in the smartphone platform, Google. South Korea’s financial regulator is currently considering a clause to launch an Apple Pay service submitted by local credit card company Hyundai Card. Financial Supervision Service (FSS) confirmed to TechCrunch.

The FSB declined to provide details. According to this Renhap Infomax reportFSS review for approval of Apple’s digital payments service may take one to two months and be completed as early as the end of this month.

Apple Pay will support Hyundai Card, financial division of Hyundai Motors. The Hyundai Card is reported to have an exclusive one-year partnership with Apple Pay in South Korea, meaning that initially only Hyundai Card holders will be able to use Apple Pay services in the country.

Hyundai Card declined to comment. Apple did not respond to the TechCrunch message.

There are rumors about the launch of Apple Pay in South Korea. since last month when an iPhone user blogged the terms of use for Apple Pay in South Korea, which included details of Apple Pay’s participation in the Hyundai Card. It also states that the terms will officially come into effect from November 30, 2022.

Hyundai Card, which has yet to release an official statement, has not commented on whether the leaked document is genuine.

Despite being home to some of the world’s largest Android device manufacturers, South Korea is still a strong market for Apple’s iPhones. As of October 22 iOS had 31% market share in the country. Enabling Apple Pay will give these and other Apple device users access to Apple Wallet to store and use payment methods to make purchases in person and online.

South Korea is one of the most digital markets in the world with high penetration and usage of broadband and mobile communications, as well as fintech in general and mobile payments in particular. Even before the pandemic and the global boom it gave to e-commerce around the world, cash accounted for just 17.4% of total transactions in 2019. in South Korea.

But while smartphone operating system giants Google (Android) and Apple (iOS) are synonymous with mobile payments and mobile wallets in some markets, they were absent in South Korea, where local mobile payment service providers such as Naver Pay, Kakao Pay and Samsung Pay is most widely used in the country.

It’s not because Western companies haven’t tried. Apple Pay and Google Pay have been reportedly trying to penetrate South Korea since 2020. 2017, respectively. Some say that one of the problems was the lack of NFC support in payment terminals: a near-field communication, low-power radio system that allows data to be transferred over short distances of about 3 inches or 10 centimeters between terminals required by retailers and devices is the basis of how Apple Pay works. and Google Pay.

In South Korea, only about 10% of the 2.9 million local retailers use NFC at their credit card terminals. Most Korean retailers use Magnetic Secure Transfer (MST), a mobile payment technology that allows smartphones to make wireless payments using traditional readers and credit card terminals. Once Apple Payments is introduced, most local retailers will need to install new NFC payment terminals for Apple Pay users. (Samsung Pay uses both MST and NFC.) Apple will allegedly require the card issuer to pay a fee of 0.1 or 0.15 percent of the transaction amount.

If (or when) Apple Pay goes live in South Korea, it will become the eleventh country in Asia Pacific to support the Apple Wallet and digital payment service. Company from Cupertino already running its payment services in Australia, China, Hong Kong, Macau, Taiwan, Japan, Singapore, Kazakhstan, Malaysia and New Zealand.

By Peter Kavinsky

Peter Kavinsky is the Executive Editor at cablefreetv.org