Korean banks ramp up QR payment push in Southeast Asia
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Korean banks are actively expanding their QR code payment services, allowing customers to pay by scanning QR codes with their smartphones, industry officials said Tuesday.
In particular, they view the Southeast Asian market as a promising new source of revenue, given that QR payments have become common there amid relatively low credit card usage.
By targeting not only Korean tourists visiting Southeast Asia but also the region’s 700 million local users, the lenders aim to secure an early lead in the market and capture transaction fee revenues.
Hana Bank’s fintech subsidiary GLN International, which spun off in 2021 to develop a global payment and settlement network, recorded QR payment transactions worth 31.8 billion won ($23 million) in the first half of this year, about 10 times the 3.2 billion won posted in the same period of 2022.
GLN’s QR payment services mainly focus on Southeast Asia, with Thailand accounting for more than 60 percent of the total transaction volume. Other key markets include Laos, which accounts for 24.1 percent of transactions, Japan with 11.6 percent and Vietnam with 2 percent.
Since July, GLN has expanded its QR payment support to the Philippines and is set to introduce services in China, Hong Kong and Macau this October.
In 2024, KB Kookmin Bank signed an agreement with the National Bank of Cambodia to develop and operate a cross-border QR payment system. The initiative is now in its testing phase, with the goal of allowing users of Star Banking — the Korean bank’s app — to pay at Cambodian merchants by the end of the year.
The bank is also working to complete a system that would enable Cambodian customers to make transactions at its affiliated merchants in Korea.
Woori Bank, through its local branch in Vietnam, has partnered with the country’s state-run payment gateway operator to launch QR payment services in Thailand. The integrated payment networks between Vietnam and Thailand enable transactions in Vietnamese dong at Thai merchants without the need for currency exchange.
Shinhan Card has teamed up with UnionPay to provide QR payment services integrated with WeChat Pay as part of its push into the greater China market.
“Southeast Asia is a market with tremendous growth potential for Korean financial institutions, as QR payments have already become part of everyday life there,” an official in the banking industry said. “By securing a foothold in the payment infrastructure, banks can generate stable fee-based revenue, which is why they are actively pursuing expansion strategies.”