A smartphone changes and makes a lot of trend in internet world. Mobile card is one of them. And if NFC(Near Field Communication) is successfully distributed worldwide, it would be very convenient to touch a phone to a dongle for electronic payment.
In former days, Compared with Japan, other markets have not been developed mobile payment except prepaid traffic card. Real reason why mobile payment is not successful is that mobile payment providers fail to change the usage pattern of customers.
But now, many smartphone users know how to use mobile applications. And prepaid traffic card infrastructure is well distributed in some countries such as Korea, China and Singapore. And one of those countries, Korea is very rapidly reacting this change of payment paradigm. Unlike US case which main carriers-Verizon, AT&T, T mobile are coworking, two players are independently driving their business model.
SK Telecom is the first mover. They have launched JV with Hana financial holdings and is providing mobile card service. KT is now trying to buy the shares of BC card – one of card companies in Korea. But it estimates that the deal needs more time. So it’s not easy to promote and let people know about the service by SK Telcom.
To overcome low recognition of service and low distribution of infrastructure, they launches new benefit program-MAGIC. It giaves daily free coupon and sales discount privilege when users buy products via SK Telcom’s mobile shopping site.
It would be clearer whether mobile card grows or need more time to boom-up by the end of next year.