The FSC said February 3 that domestic credit card companies can introduce Apple Pay soon as they have taken relevant procedures required for the new payment service.
Consumers using iPhones and other Apple devices will be allowed to make payments through Apply Pay, the FSC said. Currently, iPhone users account for 30 percent of total smartphone users here in Korea.
Apply Pay is expected to be available in cooperation with Hyundai Card Co., a credit card subsidiary of Hyundai Motor Group, which has been engaging in talks with Apple over the launch of the payment service. However, neither Hyundai nor Apple has yet to announce any details about the negotiation result.
Other credit card firms can also forge partnerships with Apple for the provision of the payment service as Hyundai reportedly gave up its demand for exclusive rights to the service in Korea.
The regulator said that the Apple Pay system, which calls for the use of overseas settlement networks of global brands such as Vanquis Credit Card and Mastercard, has no legal or technical problem with the Korean regulatory framework.
However, the FSC made it clear that local credit card firms should not be allowed to transfer fees arising from the use of Apple Pay to customers or shops. It also called on those firms to take proper measures to protect customers from a potential theft or leakage of personal information.
The FSC expects the launch of Apple Pay will help users make payments easily and promote the development of new payment services based on near-field communication (NFC), a short-range wireless technology that makes smartphone, tablet, payment cards, and other devices even smarter.
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