From Smoker to Smother
Once NFC-based mobile payment services like Samsung Pay, Android Pay, and Apple Pay take root in the market, it is predicted that the increased weight of mobile credit cards could change existing payment methods linked with actual credit cards.
However, experts are now saying that it will take a lot of time for NFC-based payment systems to be used as a common payment method. This is due to the fact that understanding technology, a shift in user attitudes toward a new payment system, and a change in payment habits and related systems are all required.
“For mobile payment services of Samsung, Apple, and Google to take root, it is necessary for those services to have a more convenient feature than the conventional method using credit cards,” said Kim Jong-hyun, researcher at Woori Finance Research Institute on March 15. He added, “Although the current mobile payment methods are technically sophisticated, it is essential to promote the service so that people can think the service is user-friendly.”
To properly use various types of payment methods using a magnetic secure transmission technology, an NFC-based mobile phone payments service, and app cards touted by Samsung Pay, not only users but also staff members at affiliated stores are required to have knowledge about mobile payment methods.
Even with enough understanding about different kinds of services, mobile payment service providers should make a significant investment to change user payment habits. In fact, Alipay injected around 600 million yuan (100 billion won, or US$96.2 million) to promote its new service Alipay Hongbao.
Lee Hyo-chan from Credit Finance Research Institute remarked, “Since a credit card-oriented payment system is already built in the nation, it will be difficult to see the emergence of fintech firms that provide alternative payment services anytime soon.”