Kakao Pay to Launch Mobile Postpaid Transportation Card Within the Year Possible

Financial Services Commission Designates KakaoPay's Mobile Postpaid Transportation Card Service as an Innovative Financial Service

[Asia Economy Reporter Park Sun-mi] Kakao Pay will be able to launch a mobile postpaid transportation card service within this year.

On the 26th, the Financial Services Commission designated Kakao Pay's mobile postpaid transportation card service as an innovative financial service at its regular meeting. This postpaid transportation card can be used when boarding buses and subways, and provides postpaid payment within a maximum monthly limit of 150,000 KRW after alternative credit evaluation if the prepaid balance (prepaid electronic payment means) is insufficient.

The consumer's postpaid payment limit is calculated using an Alternative Credit Scoring System (ACSS) that combines financial information and non-financial information (such as information held by Kakao Pay). Kakao Pay plans to launch the mobile postpaid transportation card service in the fourth quarter.

Prepaid electronic payment instrument issuers and managers (hereinafter referred to as prepaid operators) ▲ cannot perform postpaid payment services where payment is received later, ▲ it is unclear whether they can process resident registration numbers to perform postpaid payment services, and ▲ it is also unclear whether postpaid payment services based on prepaid electronic payment instruments without issuing credit cards fall under credit card business.

However, through this designation as an innovative financial service, the Financial Services Commission granted an exception allowing prepaid operators to provide postpaid payment services within a maximum monthly limit of 150,000 KRW per individual, process resident registration numbers during the service provision process, and operate postpaid payment services without obtaining credit card business licenses under the Credit Finance Act.

A Financial Services Commission official stated, "Even those with insufficient financial history can use postpaid payments, and user convenience is expected to improve with the mobile form of the postpaid transportation card."

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