"Capture Mobile Natives"... KakaoBank Launches 'Mini' for Teenagers

Deposit and Transfer, Easy Transfer Between KakaoTalk Friends
ATM Withdrawal and Payment with 'Mini Card'

[Asia Economy Reporter Kim Hyo-jin] KakaoBank has launched a prepaid electronic payment service for teenagers. This is a 'youth-tailored' service that allows minors to use transfers and payments without opening an account, overcoming the limitation that minors cannot open internet bank accounts.

According to the banking sector on the 19th, KakaoBank released a mobile banking service called 'KakaoBank Mini' for teenagers aged 14 to 18 on the same day.

Mini can be used by completing only mobile phone identity verification, agreeing to terms, and creating a password within the mobile application (app). It supports general deposits and transfers as well as easy transfers between friends on the mobile messenger 'KakaoTalk.' Users can check their balance and transaction history in the app and monitor usage in real time through notifications.

It also provides online and offline payment methods. When opening Mini, users receive a 'Mini Card' featuring five types of Niniseu characters. This card allows fee-free deposits and withdrawals at all ATMs nationwide, just like KakaoBank's existing check cards. It can be used for payments like a check card at 'clean merchants,' excluding places where teenagers are not allowed, such as bars. It also includes a transportation card function exclusively for teenagers.

The maximum amount that can be stored in Mini is 500,000 KRW, with a daily usage limit of 300,000 KRW and a monthly usage limit of 2,000,000 KRW. Through the KakaoBank app, users can apply for income deduction to combine Mini card usage amounts with their parents' income deductions.

Under current regulations, to open a non-face-to-face account at an internet-only bank, one must possess a resident registration card or driver's license. Passports, another form of identity verification, are not accepted. Therefore, teenagers can only open accounts offline by visiting branches of traditional banks and cannot open accounts at internet-only banks like KakaoBank.

Focus on Providing Financial Experience for Teenagers
Also Seen as Preemptive Securing of Future Growth Drivers

A KakaoBank official said, "We utilized prepaid electronic payment methods to provide KakaoBank's unique customer experience to teenagers who find it difficult to open non-face-to-face accounts and to support the financial services they want," adding, "We focused on enabling mobile-native teenagers to conveniently experience finance on their own."

With K Bank accelerating its lending business based on capital expansion and Toss Bank preparing to launch in the second half of next year with a focus on mid-interest loans, competition in the internet-only banking market is expected to intensify further.

A financial industry official analyzed, "KakaoBank's launch of Mini is also a strategic move to expand touchpoints with potential customers, teenagers, in a fiercely competitive internet banking environment, thereby preemptively securing long-term growth momentum."

This content was produced with the assistance of AI translation services.