KB Card, Samsung Card, and Hyundai Card are expected to join ‘app to app comprehensive QR payment service’, which was launched by Lotte Card, Shinhan Card, and BC Card to compete with South Korean Government’s Zero Pay.
When these three credit card companies, which are competing for number two spot within credit card industry, join Lotte Card, Shinhan Card, and BC Card, it is expected that versatility of QR pay will be much better as a result. However, it is confirmed that KB Card, Samsung Card, and Hyundai Card designated a separate VAN (Value Added Network) company. They signed a contract with a different VAN company that is different from that of Lotte Card, Shinhan Card, and BC Card. As a result, there is a sign of disagreement between credit card companies.
According to industries, KB Card, Samsung Card, and Hyundai Card signed contracts with NICE Information & Telecommunication and are preparing to start QR pay service soon. On the other hand, Lotte Card, Shinhan Card, and BC Card established a hub system after signing a contract with SEEROO Information.
Having a same VAN company is a must for credit card companies that are working on joint QR pay. However, there are expected to be two different VAN companies within credit card companies that are part of joint QR pay service.
It is expected that they will have difficulties in securing franchise stores as a result.
For example, QR payments by Shinhan Card and BC Card must go through SEEROO Information’s process for them to take place at a Lotte Card’s franchise store. Shinhan Card and BC Card must signed a contract with SEEROO Information and unify every calculation process.
KB Card, Samsung Card, and Hyundai Card that signed a contract with NICE Information & Telecommunication must go through another complicated process. SEEROO Information and NICE Information & Telecommunication must share card information with each other. KB Card, Samsung Card, and Hyundai Card also need to establish additional infrastructures to unify franchise stores. Although they need to take care of these issues as soon as possible, it seems that power struggle amongst credit card companies is preventing them from coming to an agreement.

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“Purpose for participating in this joint QR pay service is different for each credit card company.” said a representative for a credit card company. “It seems that there will be power struggle amongst these 6 credit card companies.”
Some are saying that KB Card, Samsung Card, and Hyundai Card formed their own group to keep BC Card and Shinhan Card, which are purchasing proxy for UnionPay, in check.
These people believe that the real reason why Lotte Card, Shinhan Card, and BC Card formed a joint QR pay service is because they want to secure a right to purchasing proxy for UnionPay rather than expanding use of QR payment amongst South Korean consumers.
Shinhan Card and BC Card are the only purchasing proxies for UnionPay on Chinese tourists. UnionPay is drastically increasing use of QR payment and it started working on a project that will increase percentage of mobile payments by Chinese tourists in South Korea. Other credit card companies are also trying to become purchasing proxies like Shinhan Card and BC Card by setting up QR infrastructures beforehand. Actually, QR standards for Lotte Card, Shinhan Card, and BC Card are designed so that they are compatible with UnionPay.
It seems that these credit card companies lost focus of their QR payment project as they go with different VAN companies.
Staff Reporter Gil, Jaeshik | osolgil@etnews.com