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Payco Mounts Serious Challenge to Samsung Pay by Merging with Tmoney
Fintech Mergers
Payco Mounts Serious Challenge to Samsung Pay by Merging with Tmoney
  • By Cho Jin-young
  • September 14, 2015, 01:15
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Payco, NHN Entertainment's simple payment service, is expanding its reach offline by merging with Tmoney, the most-used transportation payment card in the nation. Much attention is being paid to how Payco's move will affect the dynamics of the simple payment market.

Payco enables people to purchase goods by touching a smartphone screen. Competition in the market is intensifying, as NHN Entertainment rolled out its offline simple payment service, while Samsung Pay is enjoying tremendous popularity.

According to NHN Entertainment on Sept. 13, Payco Tmoney was introduced to the market. The service allows people to pay for transportation and make mobile payments at 100,000 affiliated stores nationwide with NFC-enabled terminals, using NFC-enabled Android phones.

To use Payco Tmoney, one must download the Payco app on Google Play, select a button to register Payco Tmoney for use as My Wallet in the app, enter user information, and register a preferred payment method.

There are methods available. One is a prepaid type in which users charge money as needed, and the other is a credit-based type. After registering a credit card, people can buy goods using the registered credit card, which will be charged each month.

More than 1 million out of 1.5 million Payco subscribers have already registered their preferred payment method by selecting a credit card or a bank account, and used the simple payment service online. Over 50 percent of them used Payco again for purchasing items.

Much attention is being paid to whether or not this level of usage rates will be possible offline as well. Experts are saying that the expansion of usage rates will be possible, since NHN Entertainment is planning to distribute a Payco dongle, which is a terminal for Payco, and low-priced NFC-based terminals made by Mcpay, an affiliate of Korea Cyber Payment.