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South Korea Kakao recently announced that it will expand its fast payment field. Launched in the second half of this year to support small businesses QR code (two-dimensional code) payment function. And pay to pay to support each other, its application not only in South Korea, Chinese tourists and Chinese online shopping consumers can also be easy to use.

Kakao since July 27 to set up the first month in August the cumulative transfer amount has reached 230 billion won (about 1 billion yuan), followed by the third quarter will launch two-dimensional code payment function. This will further expand its business in the field of payment. The amount paid by the two-dimensional code will enter into the other’s Kakao wallet account.
Kakao sweep Payment Gateway mainly for small business services. The previous Kakao transfer function is also limited to transfers between Kakao friends. Now you can imagine a simple transfer to a stranger (merchant). Two-dimensional code payment and transfer in China has been popular and generalized, but little known in South Korea. The

According to Kakao pay on behalf of Park Yongjun (transliteration) that “in the user point of view, transfer and payment is the same experience” “the use of two-dimensional code, etc., do not know each other’s merchant account,
Kakao pay is not just serving Korean people, and Chinese tourists can easily use when traveling in Korea.
Kakao pay since February last year with the payment of the parent company signed a cooperation agreement credit card payment. Accept 230 billion won investment, the service data and Alipay docking, to achieve interoperability.
At present, Alipay line under the sweep payment in Seoul, South Korea, Myanmar and other areas outside the almost no use, Kakao pay but also with Alipay exchange, Chinese tourists can Kakao pay franchise easy to use. Kakao pay Korean users reached 19 million people, Alipay users about 800 million people. On the Kakao pay franchise for the Chinese tourists can easily use, the publicity effect can not be discounted. Kakao pay is not just their own stores, even Alipay’s more than 3,300 stores will be swept together.

Liu representative stressed that “the line of payment is used in order to pay more exchanges with Alipay, which will share with China’s 800 million people use the payment service.” “Chinese tourists not only in the Myeong-dong area, anywhere in South Korea can easily pay On the franchise is not just means to pay, more importantly, to promote the effect of ”
In fact, Kakao ambitions in South Korea is very large, the current Korean mobile payment has not yet universal, bank card payment is the main means of payment, the payment of the industry chain is more traditional. (Credit card) or bank, third party payment (PG company), terminal equipment access (VAN company), and business is a long time very stable industrial chain and interest chain.
Kakao as a social platform, and not like China’s Alipay and WeChat as a third-party payers, but directly set up online banking. And launched Kakao bank cards, Kakao loans and other services. Is a genuine issuer and financial institutions. Kakao Pay claims that it does not require third-party payment and terminal access providers, and can complete the entire payment service. Of course, this and Kakao can do this, with the Korean system policy.

This is a good thing for Korean nationals, because the reduction of links, also reduced the middle of profit exploitation. South Korea’s current business card credit card fee of about 2% to 4%. The fee is 1.5% to 2.5%, 0.5% to 1.5% of PG and 0.3% to 1% of Van. In the last ten years or so the interests of the chain of deep roots, businesses complained about the high credit card fees growing.
If Kakao will save the middle of the cost, as a means to promote its offline payment, monopoly of small businesses and personal funds distribution channels. As well as the current lending business, if coupled with a similar balance of business. Its impact is enough to overwhelm the current payment industry chain in Korea. Most of the terminal equipment access will collapse, third-party payers to reduce, and even traditional banks will be unimaginable impact merchant credit card processing. And then to promote institutional reform, to pay for industrial restructuring, or re-shuffle is also possible.

South Korea’s focus on financial technology, as well as policy changes are deeply affected by China. In the 2014 Korean drama “from the stars of your” hit, the director group and investors are ingenuity, in each episode of the heroine thousand Chung Yi’s decorations are carefully prepared, and with appropriate publicity, “thousand Sung style “has become the popular vane of Chinese fans. A large number of Chinese fans to visit their Korean shop, big show their feet, ready to buy a lot enough, but in the Korean website consumption of more than 300,000 yuan (about 1,500 yuan) need e-Cert. This restriction will be the Chinese online shopping crowd shut out, this e-certificate only Korean or registered in South Korea to live in the foreigners can be certified, then the former president of South Korea Park Sister cursed the financial system in Korea and other events. Called for the abolition of e-Cert and Active-X and many other mandatory restrictions.

South Korea’s financial sector and the use of e-Cert and Active-X Korean nationals, but also a nightmare presence, and even the presidential election, there will be a Cui candidate will abolish the Active-X and e-certificate commitment as the election president’s Raiders!
If you want to use mobile phone transfer, first of all to their own network, open online bank account, download APP, landing APP after entering the Internet bank password 1, then Active-X prompts you do not install a certain anti-virus software, install and then e-Cert Installation, I certify, enter the bank account number (non-card number), enter 4 payment password 2, set 10 or more e-certificate password 3, but also enter the security card (60 different numbers corresponding to different numbers of paper) The amount of more than 3,000 yuan but also for ARS voice certification.

Many Koreans feel that financial already, I do not have to do it. But used to the domestic mobile payment of the author, or want to use mobile phone transfer and payment. But every time after this series of operations, have to curse in the heart several times the South Korean financial institutions, “This is not a human use,

South Korea’s financial sector do not want to reform for three reasons.

First of all, the traditional bank market share long-term stability, the user moves less, there is no competition, there is no need to please the user, to consider the user’s convenience.

Second, the South Korean public opinion is too open, coupled with the national small, little thing can be noisy nationwide know. Assuming that the user is convenient, remove some of the certification steps, happens to be fraud, or theft and other criminal cases. Through the hype of public opinion, the problem will continue to enlarge, even if the bank properly handle, but also to the national nation to bring “unsafe” impression, which is greater losses on the bank. Some Korean politicians have seen this and have also published articles in the South Korean financial community to evade responsibility for putting security responsibilities into users.

Third, banks have become accustomed to Active-x management models, infrastructure and databases are all built in this model. Forced the government to force the abolition of their own Active-X way, but they jointly set up a substitute EXE (ISP) way, through the joint formation of third-party security certification program to solve, the advantage is not too much investment, but the disadvantage is this Way to seriously block their own innovation. Another point of view is not willing to innovate in this area.

Kakao Pay as Fintech most representative products, and the Korean government and institutional support are inseparable.
Entrepreneur and innovator Jiang Yongcai (transliteration) on behalf of September 7 to the Central Daily reporter said that the current financial services issued by the world ICT (information and communication technology), large data, mobile payment of the typhoon, but the government five years plan There is no bank separation or online banking. Only after 2018 by changing the legal system to support large data, financial technology and other innovative financial services’ text “Ginger representatives said that” the current financial services, changing every day, until next year may miss the prime time, must be ahead of time. “At present, many financial and technological entrepreneurs, because the system can not carry out business, as soon as possible to remove those who do not meet the Internet banking and quick payment of mandatory requirements.

It seems that South Korea’s mobile payment and other financial technology to reach the level of China, even if the technology has reached a series of policies to follow up on a long way to go.