Shinhan, KB, Toss hesitate to adopt Apple Pay
An Apple Pay sticker is displayed at the counter of a restaurant in Seoul, March 20, 2023. Yonhap
Regulators vow to explore ways to support wider rollout in Korea
Shinhan Card, KB Kookmin Card and other Korean financial firms remain hesitant to adopt Apple Pay, delaying the service’s expansion and fueling frustration among iPhone users.
Hyundai Card remains the only card issuer offering Apple Pay in Korea, and it is unclear when other providers will join, according to industry officials Tuesday.
Card issuers are concerned that fees paid to Apple and the cost of building payment infrastructure could undermine profitability. Questions about the fairness of fees charged for Apple Pay while Samsung Wallet, formerly Samsung Pay, remains free have added to their concerns.
Several financial firms have taken steps toward introducing Apple Pay since Hyundai Card launched it in 2023, but some have put their plans on hold despite completing a regulatory review of their terms and conditions.
Shinhan Card received approval from the Financial Supervisory Service (FSS) in December 2024. However, it has since continued to review the timing and profitability of a launch.
Expectations surrounding KB Kookmin Card grew in August 2024, when a recruitment website carried a job posting seeking experienced workers to build its Apple Pay service. The listing was later removed. Speculation resurfaced earlier this year after some of its Visa cards were registered with Apple Wallet, though the company has reportedly not decided when to introduce the service.
Toss Bank obtained approval for its Apple Pay terms and conditions in January, having applied for an FSS review in November 2025. It has since reportedly deferred the launch for business reasons.
Industry officials say the cost of providing near-field communication (NFC) terminals and paying Apple a share of transaction fees are among the biggest barriers to entry.
Hyundai Card helped deploy NFC terminals at major franchises and large merchants when it introduced Apple Pay. Potential entrants are reportedly being asked to build infrastructure on a comparable scale, adding to the investment required before they can launch.
Card issuers also worry that sharing merchant fees with Apple would leave them with a smaller portion of the revenue from each transaction. Samsung Electronics, meanwhile, has not charged card issuers for Samsung Wallet since the service was launched as Samsung Pay in 2015.
Some industry observers have raised concerns that Samsung could begin charging fees if more card issuers adopt Apple Pay.
“The Samsung Wallet issue is probably a significant reason financial firms have been reluctant to introduce Apple Pay,” an industry official said. “If they adopt Apple Pay and Samsung Wallet then decides to charge fees as well, they would face considerable pressure because of the impact on profitability.”
Financial Services Commission Chairman Lee Eog-weon, right, answers a lawmaker’s question during a parliamentary audit at the National Assembly in Seoul, Oct. 22. At left is Financial Supervisory Service Gov. Lee Chan-jin. Yonhap
The slow expansion of Apple Pay drew criticism during the National Assembly’s recent audit of financial authorities.
“More than 200 financial firms in Japan and over 100 in China offer Apple Pay, but Hyundai Card is the only one in Korea. The service remains limited here,” Rep. Kim Yong-man of the ruling Democratic Party of Korea said during the Oct. 22 audit.
Financial regulators said they would consider measures to ease the burden of fees and improve payment infrastructure. They also indicated that they would look at ways to support payment innovation and make transactions more convenient for foreign visitors, while respecting the principle that businesses should negotiate their own terms.
Financial Services Commission (FSC) Chairman Lee Eog-weon acknowledged that the authorities’ room to intervene in negotiations between businesses may be limited, but vowed to seek ways to improve payment convenience.
FSS Gov. Lee Chan-jin also said, “We are examining specific issues related to fees and will consult with the FSC once our review is complete.”