Tech in Fintech
IT enterprises are reportedly leading patent applications related to mobile payments, one of the major elements in financial technology (fintech).
The number of patents filed by banks and credit card companies for mobile payments is smaller than that of IT companies like SK Telecom and LG Electronics. Hence, IT firms are likely to lead the fintech market.
According to a report on current trends in patent applications for the fintech industry released by the Korea Intellectual Property Office on Mar. 4, banks and credit card companies each represent 4 percent (189 cases) and 1 percent (63 cases) of 4314 patent applications related to mobile payments by November 2014.
In contrast, IT service providers comprised the largest proportion of the total, with 1,411 cases (33 percent). The number of patents filed by individuals was 910 cases (21 percent), online payment service providers 680 cases (16 percent), handset makers 500 cases (12 percent), and mobile carriers 355 cases (8 percent).
In comparison, financial companies show mediocre performance in patent applications. Shinhan Bank applied the largest number of patents for mobile payments, which amounted to 89 cases. Woori Bank and Industrial Bank of Korea filed 22 patent applications each, and BC Card at 22 cases. The number of patents filed by banks and credit card companies is similar or rather smaller than the figure for SKT, LG, and Samsung Electronics combined. It indicates that it is possible for IT companies to lead the fintech market.