Will Card Company Open Pay Become a Reality... App Card Compatibility Possible as Early as the First Half of the Year

Specification for Interoperability Developed Last November
Self-Help Measure to Enhance Platform Competitiveness Against Big Tech
Attention on Whether All Card Companies Will Participate

[Asia Economy Reporter Ki Ha-young] As early as the first half of this year, it will be possible to register and use credit and debit cards from multiple card companies within a single application (app). This is a self-help measure by card companies to respond to big tech companies (large information technology companies) that are expanding their influence in the simple payment market. However, since each card company has different interests, it is expected that it will take some time to see whether all companies will participate in the future.

According to the card industry on the 7th, commercialization of Open Pay, which allows registration and use of cards from multiple card companies within one app, is scheduled to be promoted with the goal of the first half of this year. Currently, Shinhan, KB Kookmin, Lotte, Hana, and BC Card are reportedly reviewing it positively.

Earlier, in November last year, card companies developed interconnection standards and standard APIs for mutual interoperability registration between card companies. The main point was to create standards that open each card company's pay app to other card companies, allowing multiple companies' cards to be registered and used within a single app. For example, a system was built that allows KB Kookmin Card to be registered and used for payment within the Shinhan Card app. From the customer's perspective, convenience is improved as they can pay with multiple cards using only one app without having to install individual card company apps one by one.

This decision aims to increase platform versatility and prevent losing leadership to big tech in the growing simple payment market. Naver, Kakao Pay, and others allow convenient payments not only through all card companies but also through various payment methods such as account linkage and charging. According to the Bank of Korea, as of the first half of last year, the average daily usage amount of simple payments by electronic financial operators such as Naver Pay and Kakao Pay was 276.2 billion KRW, a sharp increase of 57.3% compared to the previous year. Financial companies recorded 159.1 billion KRW, a 25% increase compared to the previous year, but it did not match the growth rate of electronic financial operators.

While there is consensus on the need to strengthen competitiveness of their own platforms to counter big tech, it remains to be seen whether all card companies will participate in the actual commercialization of Open Pay. If multiple card payments are possible within one app, competition among card companies to secure customers may intensify even before big tech. There are also concerns that once Open Pay is commercialized, customers may flock to large card companies.

An industry official said, "To compete against the rapidly growing big tech in the payment market, all card companies need to participate in the Open Pay platform to create synergy," but added, "Since there is no precedent and it is directly related to profits such as customer acquisition, each card company is carefully considering whether to participate."

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