Hyundai Card in talks with Apple to introduce Apple Pay in Korea

By Anna J. Park

Hyundai Card is currently known to be in talks with Apple to introduce Apply Pay exclusively to Korea as early as by the end of this year.

According to local credit market sources, Hyundai Card's talks with Apple are in its final phase to seal the deal of exclusively introducing the mobile payment services to Korean consumers. Hyundai Card is expected to sign a one-year exclusive contract to provide the U.S. tech-giant's mobile payment service, while some say the contract could be extended for up to three years.

Since early August, there have been numerous local media reports speculating about Hyundai Card's exclusive deal with Apple Pay. Yet, the credit card company has kept its lips sealed on the matter.

“There's nothing the company can confirm on the matter. That's all we can say,” an official from Hyundai Card told The Korea Times, Wednesday

However, the local credit card industry now regards the deal as a fait accompli, as the sources of the news came from the local payment network business industry during Hyundai Card's recent talks with them.

If the contract is finalized as expected, Hyundai Card is expected to introduce the Apple Pay service as early as December this year at major local shops, such as large retailers, coffee franchises or convenience stores, where near-field communication (NFC) readers are installed. NFC technology is a key component of Apple Pay, which allows the service to make contactless payments via smart mobile devices. Currently, about 70,000 shops in Korea are equipped with NFC readers.

Apple Pay was first introduced in the U.S. in 2014, and it's now available in more than 60 countries around the world. Neighboring countries like Japan and China started to offer the global tech giant's mobile payment service in 2016.

Since 2015, there had been attempts to offer the payment service to Korean consumers as well, but Apple and local credit card companies couldn't reach an agreement on key issues, including how to share the cost burden of distributing NFC readers nationwide.

Given that Samsung Pay, which relies on magnetic secure transmission (MST) technology for its mobile payment service, currently accounts for about 80 percent of contactless mobile payment in the Korean market, it will likely be the company that is the most affected by the introduction of Apple Pay.