Mobile Banking Competition
Daum Kakao has officially launched its mobile money transfer service Bank Wallet Kakao on Nov. 11, and large ICT companies like Samsung Electronics and LG U+ are also starting mobile banking businesses. These ICT firms are accelerating the launch of a new offensive to dominate the market by touting their technical strength in addressing security problems, which are the biggest concerns for consumers in mobile banking. Hence, there is increasing anticipation that the local finance and IT industries will start a boom.
According to industry sources on Nov. 12, Samsung is said to be debuting a mobile money transfer service within the year, following the release of the mobile payment service Samsung Wallet in September of last year. The company is working with Yelopay to roll out its mobile money transfer service. It is also proceeding with a plan to link the mobile app cards of major credit card companies to Samsung Wallet.
LG U+ is also reportedly working to add a money transfer feature to its mobile payment service Paynow. The company believes that it is too early to announce the details or the release date for the service, but its preparation for the mobile money transfer service has reportedly entered its final stretch.
The mobile payment services of Samsung and LG U+ are expected to be similar to Bank Wallet Kakao.
Bank Wallet Kakao enables users to charge up to 500,000 won (US$455) and transfer as much as 100,000 won (US$91) per day by entering a password on a mobile device. If large local firms like Samsung and LG U+ begin their mobile money transfer services, it is expected to change the dynamics of the financial market.
An industry source said, “Bank Wallet Kakao only provides existing banking services on the mobile messaging platform, but the mobile banking services of Samsung or LG U+ will probably be more advanced.”
The penetration of ICT enterprises into the mobile banking market is likely to have dramatic implications, as their services are expected to solve security and technical problems.
SKT, KT, and LG U+ are making an effort to enhance security technologies to prevent financial crimes in mobile baking. If these techniques are integrated into mobile payment and money transfer services, the maximum amount allowed for charging and sending money per day in mobile banking services provided by local mobile carriers will be greater than that of Bank Wallet Kakao. The three carriers are already competing with each other to dominate the market with more secure mobile payment services.