Banks and credit card issuers fight back against onslaught of tech giants

This archive photo shows ATMs at major South Korean banks. (Yonhap)

SEOUL, June 7 (Korea Bizwire)In response to the challenge posed by tech giants breaking into banking, traditional financial services companies such as banks and credit card issuers are launching a counterattack.

Credit card companies are gearing up to launch an “open pay” service that allows customers to register and use competing cards on their simple settlement platforms.

In April, the country’s nine major credit card companies struck a deal to pave the way for more cards to be used on their platforms in mutually beneficial ways.

The new simple settlement service, led by Naver Corp. and Kakao Corp., South Korea’s two leading technology companies, allows users to register their credit cards or bank accounts through smartphone apps and easily make payments through Near Field Communication (NFC) or a barcode. recognition.

Banks are also busy devising countermeasures. Shinhan Bank, for example, is said to have invested more than 10 billion won ($ 9 million) to enter the delivery application market.

KEB Hana Bank divested its overseas blockchain-based payment settlement business as a subsidiary late last month as part of efforts to strengthen its presence in the payment settlement services market.

To tackle the challenge posed by Kakao Bank and K-Bank, the country’s two internet-only banks, the country’s leading financial firms, including KB Financial Group Inc., have teamed up to create a joint internet bank.

Ashley Song ([email protected])

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