Suwon-si will be the first local autonomous entity to introduce along with South Korean banks and FinTech startups a simple mobile payment system with no fees to traditional markets. It has opened up a generation of zero fee for franchises that even internet-only banks could not implement.
According to industries on the 9th, Suwon-si made an announcement that it is going to introduce along with HAREX INFOTECH and Industrial Bank of Korea ‘UB Pay simple mobile direct payment service’ to 3,300 stores located in 22 traditional markets in Suwon-si.
This service allows payments to be made by installing an application through a Smartphone and scanning a QR code that is located at a store. It allows mixed payments through amount of payments, passwords, and biometrics and immediately notifies an owner or a Smartphone or an employee about corresponding breakdown. Customers can automatically receive 40% reduction from their year-end tax adjustments for amount of money that was spent at traditional markets.
Through discussions between Suwon-si, Industrial Bank of Korea, and HAREX INFOTECH, UB Pay service does not take any fee. UB Pay service is a mobile payment platform that even internet-only banks could not implement.
Although there were many attempts in the past to reduce fees for small franchises including traditional markets, this is the first time where there is no fee.
It had been difficult in the past to reduce fees since it was difficult to do so within a structure that uses card terminals and must receive services from intermediaries such as VAN (Value Added Network) companies.
UB Pay is a payment service based on users that does not use terminals for payments and allows customers to directly requests payments from banks. Through cooperation from partnering banks, Suwon-si has come up with a direct payment service with no fees.
Starting with Suwon-si, HAREX INFOTECH is eventually going to expand this service towards traditional markets in metropolitan cities such as Seoul during the first half of 2018 and expand it towards countryside and agro-fishery markets during the second half. Besides Industrial Bank of Korea, it is also discussing with other banks that are showing interests towards this service regarding participation in this service.
“It is true that we had faced many difficulties such as installation of new terminals and financial burden from additional fees to introduce new payment services in the past.” said a representative for Suwon-si’s merchant union. “We welcome UB Pay service with open arms as it is able to attract young consumers and drastically reduce financial burden from fees for franchises.”
Staff Reporter Gil, Jaeshik | osolgil@etnews.com