Even though South Korea as a whole is high on Near Field Communication contactless payments, the reality is that it is still very limited and deployment can be expensive. As an alternative, some telco service companies are planning barcode and phone number-based mobile payments.
From the Korea Herald:
Customers can make debit payments by downloading an app on their smartphones, typing in their account numbers to create a bar code and having a barcode reader at the counter scan it.
If a customer signs up at a website for ARS-based payment and enters his phone number, he will get a phone call before each payment. The money is transferred from his account once he enters his personal identification number through his cell phone.
These type of payments would be settled through debit transactions so merchants can expect lower fees than credit card transactions. Details have yet to be disclosed. South Korea’s Financial Services Commission believes tying the payments through debit transactions can help consumers rely less heavily on credit cards.
Click here to read more from the Korea Herald.
