“South Korean banks will be able to expand their channels towards simple payment field and secure current customers through Zero Pay project.”
Lee Geun-joo, who is the head of Zero Pay Promotion Group, met with The Electronic Times on the 20th and explained about many advantages Zero Pay will bring to FinTech companies and financial industries.
Ministry of SMEs and Startups (MSS) and Seoul-si formed a private preparatory committee, which will promote Zero Pay project, last month and appointed Director Lee Geun-joo of Korea Fintech Industry Association as the chairman as he has high knowledge and understanding of current financial industries including FinTech industry.
“Just by looking at Toss’ new bank account opening service, FinTech is able to expand banks’ customer channels.” said Lee Geun-joo. “Zero Pay will help banks and financial industries to continue to maintain their customers.”
He is predicting that Zero Pay will increase number of opportunities for partnerships between banks and FinTech companies as commercial banks are starting to open FinTech labs. Not only banks can connect their businesses with FinTech companies that are participating in Zero Pay project, but they can also secure direct payment market.

Photo Image
<Lee Geun-joo, who is the head of Zero Pay Promotion Group, is explaining about opportunities that Zero Pay will provide to banks and FinTech companies.>

He also added that Zero Pay will help commercial banks to secure data. Because percentage of card payments is almost 80%, data that occurs during a transaction process goes to credit card companies. “If percentage of direct payment increases due to Zero Pay, commercial banks will be able to collect data without having it go through credit card companies.” said Lee Geun-joo.
He is expecting that Zero Pay will bring benefits to many more FinTech companies as he compares Zero Pay to joint open platform of commercial banks by Korea Financial Telecommunications & Clearings Institute. “Process of FinTech companies bringing in 18 bank APIs to create fund transfer or fund inquiry services has been made much simpler due to joint open platform.” said Lee Geun-joo. “In the same manner, Zero Pay will provide joint franchise stores to FinTech companies that are having difficulties in securing franchise stores.”
He emphasized again that the fact that KakaoPay not participating in a pilot project of Pay does not mean that it will not be participating in the actual Zero Pay project. Previously, CEO Ryu Young-joon of KakaoPay also made it clear that although KakaoPay is not participating in a pilot project of Zero Pay, there is a possibility that it will be participating in the actual Zero Pay project.
“KakaoPay is not able to participate in a pilot project as it was deliberating what it would do with its QR codes that are already installed.” said Lee Geun-joo. “KakaoPay has always had intention to participate in Zero Pay project from the beginning.”
Staff Reporter Ham, Jihyun | goham@etnews.com