Korean companies have launched a new mobile payment service

Two Korean companies KTF, telecom operator, with 13.3 million customers and 2.1 million member shops, and Shinhan Card, credit card processor, one of leading developers of mobile payment systems in Asia, have announced about their decision of establishing a joint venture to launch a mobile phone payment system in the second half of the year. Mobile Credit, exactly this way the new service will be named cost each of two companies 1 billion won. According to their agreement companies made a contract under which Shinhan owns 50 % plus one shares, and appoints the CEO. As for KTF, it pays the rest and appoints the chief financial officer.

Cooperation with Shinhan Card, the largest credit card company in Asia, is a convergence business that can offer what the customers need most,'' said Cho Young-chu, president and CEO of KTF. ``It is also an occasion that can change the financial lifestyle of customers.''

New service, Mobile Credit is based on credit card and a USIM (universal subscriber identify module) chip. Using this two small things one can make payment at shops and restaurants either with the credit card or with a USIM-inserted mobile phone. In this case the payment is deducted from the Shinhan credit card account.

``We will stop issuing the plastic card once the USIM readers are widespread,'' said Jung Woon-gyu, leader of the project.

Aynny, reporter of Ecommerce Journal