Apple would like to expand Apple Pay’s presence in Korea after offering multiple credit card providers the chance to support the company’s contactless payment service, reads a new report from Business Korea.
According to the report, Apple is in the process of discussing terms and conditions with three credit card issuers in South Korea – namely Shinhan Card, KB Card, and BC Card. Apple would like the institutions behind these credit cards to formally approve their plans to support Apple Pay by the end of December, after which usage and transaction fees will be negotiated before the official expansion sometime next year.
The transaction fee negotiation phase will be delicate since they are a major point of contention for these companies before they can support Apple Pay, the report adds. The credit card issuers have already signaled their intent to offer Apple Pay after submitting letters of intent back in June, and Apple now hopes to speed up its approval process after a period of stall.
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If approved, the expansion of new cards would be hugely beneficial for Apple Pay in Korea. The report indicates that Shinhan Card and KB Card are the two biggest credit cards in the country, jointly accounting for 40% of the Korean credit card market.
The inclusion of more issuers is crucial for Apple to expand and gain market share for its contactless payments service, which only launched in Korea earlier this year in March. At the moment, Apple Pay in Korea is only supported by Hyundai Card.
