Credit card in mobile, a new trend in finance

Posted on:  koreaninsight

On March 26th, HanaSK Card, the JV of Hana Card and SKT, launched its first service called Touch 7. Touch 7 is a mobile credit card consisting of a mobile card loaded on a 3G USIM. It also has its plastic card version. After downloading the HanaSK VM through SMS, users can pay by a simple touch of their mobile phones at Touch 7’s member retailers. At non-member retailers, they can still pay by swiping the plastic card.

HanaSK Mobile Credit Card

SKT is Korea’s leading MNO with over 50% of the market share. Hana Card is a subsidiary of Hana Financial Group which is Korea’s 4th ranking financial holding company by total asset as of 2009. Hana Card itself was amongst the lowest ranking credit card issuers in Korea with only 4% of the total market share. These two companies joined hands to create HanaSK Card last year and to provide mobile integrated payment services.

In early 2000, SKT launched a mobile finance service called Moneta, but it ended in failure. One of the reasons included difficulties in cooperating with credit cards companies. They felt threatened by SKT’s entry into the credit card market.

In 2009, SKT began its negotiation with Hana Financial Group in regard to acquiring or investing in Hana Card. The negotiation had been delayed for seven months until reaching an agreement at the end of 2009. In early 2010, HanaSK Card was established and it launched its first service in March.

 

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