Shinhan Card, Lotte Card, and BC Card to Launch Joint QR Pay

Dec 31, 2018

Three South Korean credit card companies are planning to commercialize a ‘joint QR pay’ that will be compatible at 8 million franchise stores in South Korea. This will be the second zero pay led by credit card companies.
As these credit card companies are set to commercialize QR pay, ‘Zero Pay’ led by South Korean Government is facing competitions against KakaoPay and credit card companies.
According to industries, Shinhan Card, Lotte Card, and BC Card are planning to launch ‘app-to-app comprehensive QR payment service on the 3rd of January.
This service is based on MPM method which reads a mobile app-to-app QR code through a Smartphone.
These credit card companies, which were excluded from South Korean Government’s Zero Pay project, are launching a joint QR pay to prepare against Zero Pay. It is expected that these credit card companies will compete against Zero Pay, which is having difficulties in securing initial franchise stores, on full-scale.
They finished developing joint QR standards and systems. Financial Supervisory Service (FSS) also approved relevant terms so that their joint QR pay can be commercialized.
Number of franchise stores and level of convenience is not even comparable to that of Zero Pay. First, number of franchise stores that can use joint QR pay is 100 times more than that of Zero Pay.
Shinhan Card and Lotte Card have 2.7 million franchise stores each and BC Card has 2.98 million franchise stores. Since their joint QR pay is compatible amongst all 3 franchise stores, it can be used at any franchise store. Other credit card companies are also planning to participate in this joint QR pay.

Shinhan Card, Lotte Card, and BC Card to Launch Joint QR Pay

Joint QR pay’s payment method is similar to that of Zero Pay. Businesses who are not members of these credit card companies can receive small business benefits when they apply for a separate franchise store application. Online payment businesses without physical stores can also use joint QR pay. All of these advantages are contrasted to Zero Pay which is only available offline.
Shinhan Card, Lotte Card, and BC Card are also planning to absorb mobile and small franchise stores where it is difficult to install payment readers.
This joint QR pay does not require a card reader but just installation of an application. These credit card companies are also planning to supply their joint QR pay to markets such as mobile retail stores and shoe repair services where it is difficult to install card readers.
It is heard that they are going to apply almost zero fee to franchise stores that adopt their QR pay system. They also set up a plan to return processing costs that are saved to their customers as benefits.
Customers can use QR pay with credit cards that they use often. They just have to scan QR codes of credit card companies that are placed at franchise stores through applications of credit card companies that they use often.
Financial authorities are also supporting joint QR pay.
“We recommended a comprehensive QR pay between credit card companies so that franchise stores and consumers can all use same convenient payment method.” said a representative for FSS. “We are currently discussing with every credit card companies about participating in this joint QR pay before this year is over.”
Staff Reporter Gil, Jaeshik | osolgil@etnews.com

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