ID :
195024
Thu, 07/14/2011 - 12:36
Auther :
Shortlink :
https://oananews.org//node/195024
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Mobile card market riding on smartphone boom
SEOUL, July 14 (Yonhap) -- South Korea's mobile card market is growing at a rapid clip as an increasing number of consumers are using their smartphones for making payments, industry data showed Thursday.
A mobile card refers to a credit card built into a mobile phone enabling the user to pay for goods and services. To use mobile cards, a special chip, dubbed near field communication (NFC), needs to be installed in a handset.
According to the data, Hana SK Card Co., the leader of the country's mobile card market, saw a surge in its issuance of mobile cards. Last month, the number exceeded the 100,000 mark, up from 60,000 in January and 80,000 in April.
Hana SK Card's revenue from handling mobile cards topped 900 million won (US$852,000) in June, up from 500 million won in the previous month.
The company is a joint venture between Hana Financial Group, the No. 4 financial holding company in South Korea and top mobile carrier SK Telecom Co.
Shinhan Card Co., the country's second-largest credit card company, also saw its issuance of mobile cards surpass 100,000 recently.
Market watchers said the mobile credit card market is expected to gain further ground down the road due to the surging popularity of smartphones and a rise in the number of smartphones that come with an NFC chip.
For the first time in the country, Samsung Electronics Co. put a smartphone model with a built-in NFC chip on the market in May, with other models to be unveiled in the future also having the feature. The government is stepping up efforts to expand the network of mobile card readers.
The number of smartphones with such a function is widely expected to top 5 million within this year, helping to expand the burgeoning mobile card market, the watchers said.
"Once the NFC chip-installed smartphones and readers are in wide use, other credit card companies will seek to tap into the market, helping mobile cards take hold," an industry official said.
South Korea has seen a smartphone boom since Apple's iPhone debuted in South Korea in late 2009. The number of smartphone users in the country topped the 15 million mark as of Monday.
A mobile card refers to a credit card built into a mobile phone enabling the user to pay for goods and services. To use mobile cards, a special chip, dubbed near field communication (NFC), needs to be installed in a handset.
According to the data, Hana SK Card Co., the leader of the country's mobile card market, saw a surge in its issuance of mobile cards. Last month, the number exceeded the 100,000 mark, up from 60,000 in January and 80,000 in April.
Hana SK Card's revenue from handling mobile cards topped 900 million won (US$852,000) in June, up from 500 million won in the previous month.
The company is a joint venture between Hana Financial Group, the No. 4 financial holding company in South Korea and top mobile carrier SK Telecom Co.
Shinhan Card Co., the country's second-largest credit card company, also saw its issuance of mobile cards surpass 100,000 recently.
Market watchers said the mobile credit card market is expected to gain further ground down the road due to the surging popularity of smartphones and a rise in the number of smartphones that come with an NFC chip.
For the first time in the country, Samsung Electronics Co. put a smartphone model with a built-in NFC chip on the market in May, with other models to be unveiled in the future also having the feature. The government is stepping up efforts to expand the network of mobile card readers.
The number of smartphones with such a function is widely expected to top 5 million within this year, helping to expand the burgeoning mobile card market, the watchers said.
"Once the NFC chip-installed smartphones and readers are in wide use, other credit card companies will seek to tap into the market, helping mobile cards take hold," an industry official said.
South Korea has seen a smartphone boom since Apple's iPhone debuted in South Korea in late 2009. The number of smartphone users in the country topped the 15 million mark as of Monday.
