Shinhan launches all-around mobile payment solution

(Shinhan Financial Group)

South Korea’s Shinhan Financial Group on Tuesday launched a mobile payment solution, as traditional banking groups seek to bolster their digital capabilities in competition against rising fintech firms.

The payment solution, Shinhan Pay, provides Shinhan Card subscribers with easy-to-use payment services and money transfers at several offline stores.

For Shinhan Bank users, Shinhan Pay allows them to easily subscribe and activate mobile debit cards linked to their bank accounts.

Shinhan said it plans to expand its services to users with accounts through its other businesses, such as Jeju Bank, Shinhan Savings Bank and brokerage unit Shinhan Investment.

Shinhan’s foray into the mobile payment market comes as traditional banking groups struggle to keep pace with tech-savvy services provided by fintech firms. KB Financial Group launched a similar payment service last year, while Hana Financial Group, according to an exclusive report from The Korea Herald last week, applied for trademark rights to the name “Hana Payments” last month.

Kakao Pay, a mobile payment service provider operated by Kakao Corp., is currently the nation’s leading mobile payment service with 35 million users. The service was launched in 2014, and last year payments through Kakao Pay reached 67 trillion won ($62 billion).

By Jung Min-kyung (mkjung@heraldcorp.com)

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