Wednesday, July 13, 2011

Mobile Banking Development South Korea


SK Telecom is a mobile operator in South Korea with innovative mobile banking solutions

Facts from South Korea:
Mobile-based transactions cost 20% of what face-to-face transactions do
Advanced wireless infrastructure
Cell phones owners are greater than computers owners

2002: Largest two mobile operators SK & KTF each launched post-pay mobile infrared pay programs, Moneta & K-merce.
Problems were: Poor usability – POSs weren’t – mobile operators demanded high share of transaction card issuer’s revenue


2003: 3rd largest mobile operator LG partnered with largest SK bank (KBank) to launch BankOn, 1st IC ship-based mobile banking service. BankOn did not provide mobile payment services like Moneta or K-merce but instead enabled its customers to user their mobile phones as a substitute for ATM or transit card. BankOn increased market share dramatically.
2003: 280,000 people signed for BankOn during first 4 months.
APR 04: 700,000 customers use BankOn


SK: Collaborated with smaller banks to offer MBank using dual-chip; one for bank accounts [b-controlled] & one for Moneta.
2004: 200,000 m-Banking customers subscribed for Mbank
KTF: Launched m-Banking KBank, unlike MBank, it adopted single chip controlled by banks
2004: 70,000 m-Banking customers subscribed for Kbank
2004: 1m subscribers (tripled within past 15 months)
2004: 3.3m transactions in March
2004: 4m transactions in June done by 581,000 Koreans
2006: Contactless solutions from Visa (Wave) and MasterCard (PayPass) were operated. Special SIM-sized credit card certified by card organizations can be inserted into mobile.


2007: SK launched a new service enabling subscribers with certain device models to download credit card apps over air.
Customers can download m-Banking & transportation apps on chip. So, no need to swap chips with different bank apps.
MAR 10: SK launched T Smart Pay; contactless payment card able to receive discount coupons and membership points. Customers can store up to 8 credit cards on their mobile phones as well as up to 30 membership/point/mileage cards and 50 coupons. At POS, customers choose which credit card to pay with.


SK Telecom: “By offering the integrated payment and settlement service, T Smart Pay will allow customers to save purchasing cost by leading them to make wiser and more informed purchasing decisions.
In addition, affiliated stores are expected to enjoy increased sales as they enhance customer satisfaction through better customer relations management made possible via T Smart Pay. They will also benefit from reduced cost of issuing coupons and flyers. Furthermore, credit card companies are expected to benefit from lower plastic credit card issuance and replacement cost, and increased customer loyalty compared to competing credit card companies.
T Smart Pay will be offered first via Home Plus, a discount retailer with 113 branches”.
-Operators sell new equipped handsets
-Applied technology is '13.56MHz RF SIM'. "This method follows ISO7816 or 14443 standard for electronic identification cards including smart cards," the company told NFC World.

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