NFC payment platform will be introduced in Everland where 7 million people visit every year. Following Everland, Shilla duty free shop, Walkerhill, convenience stores, and large affiliates are planning to join NFC line.
Large affiliates that are at the top of consumption trend chose NFC to vitalize mobile payments. Korea’s mobile payment market which is divided into USIM and app-based mobile card, is facing a different situation as NFC is adopted.
If this trend continues on, there is a high possibility that distributor and large affiliates will form another mobile payment camp just like MCX. Shilla duty free shop and Walkerhill duty free shop are planning to expand NFC infrastructure following Everland. Although there is an intent that it will utilize NFC payments targeting foreigners like Chinese, non-contact type payment platforms will be majorities regarding immediacy and convenience.
It is estimated that mobile payment market will be worth about 657 billion dollars (730 trillion KRW) by 2017. While there is a competition on standardizing platform, it seems there will be a fierce neck-and-neck race as many affiliates are joining relevant markets.
Korea’s NFC-based payment are not seeing solid results as there is a mixed condition between barcodes and MST. It will be a lot of time-consuming process to expand to entire Korea s there are few places that use NFC-based payments, lack of supply of payment card readers, and affiliates’ inadequacy in information. Looking at the long term, many global businesses are choosing NFC as their mobile payment standards. Apple started NFC payments by securing 220,000 affiliates in America, and Google, Visa, and Mastercard joined its line. Paypay is also planning to release NFC-based platform by end of the year, and Alipay is also looking to join NFC camp by partnering with Apple Pay.
VAN business operators and prepaid card readers are gathering together to start establishing standardization of NFC distribution payment card readers. Korea once entered demo business single-handedly to secure NFC-based mobile card payments. But the business failed as it failed to secure affiliates and lack of users.
It seems that financial corporation will join the camp one by one as Everland introduces NFC payment system to every stores in it and Samsung Electronics and its affiliates equip themselves with NFC.
“It is true that NFC has high advantage regarding consumer’s payment immediacy. NFC is established in Korea’s mobile payment market due to supply of infrastructure and participation of large affiliates. Furthermore, it is important to make a catalyst to compete in global market.” A person related to credit card business said about how important NFC is.
Staff Reporter Gil, Jaeshik | osolgil@etnews.com