KONAI enables non-financial firms to issue prepaid cards

KONAI Co. Chairman Cho Chung-il [Photo by Han Joo-hyung]

KONAI Co., a leading smart card solution provider in South Korea, has developed a new payment platform called KONA PLATE that allows non-financial companies to issue and operate rechargeable prepaid cards and debit cards.

Through the platform, non-financial companies can design, issue, process payments, settle transactions, and even offer point support services for their own cards.

“Without initial investment costs, non-financial companies can integrate their own payment services within 90 days by utilizing the open application programming interface (API) developed by KONAI,” said the company’s Chairman Cho Chung-il in an interview with Maeil Business Newspaper on Wednesday.

If a food company partners with KONA PLATE, for example, it can introduce its own branded cards or online money services without being limited by market entry barriers such as merchant infrastructure, payment systems, and point alliances.

This is made possible because KONAI, which already holds an electronic financial business license, provides a financial company-level international standard platform. The issuance of credit cards, however, which requires a credit financial business license, is not available through KONA PLATE.

Cards affiliated with KONA PLATE can be used for payments anywhere there are payment terminals, including overseas transactions.

“Many companies, including large retailers and food companies, have shown interest and we are currently in negotiations for partnerships,” Cho said.

“In the future, cards will evolve to play a role beyond being just a payment method and replace traditional bank accounts.”

Cho founded KONAI in 1997. Starting as a smart card manufacturer, the company expanded its business into region-based digital payment operations.

Shortly after the global financial crisis in 2008, Cho visited U.S. credit card brand VISA, which sparked his interest in payment infrastructure platforms. KONAI has invested more than 100 billion won ($77 million) since 2016 to develop KONA PLATE.

“Based on our technology, we will enter payment markets in countries such as Japan, Vietnam, and Indonesia,” Cho said.

In commemoration of the company’s 25th anniversary this year, Cho highlighted the payment platform along with digital authentication, blockchain, and mobility as its future growth areas.

In the field of digital authentication, the company achieved a new milestone in March when it signed a 10 billion won supply contract with a Japanese company after seven years of effort. It is also considering establishing a local subsidiary in Japan this year.

In blockchain, the company has introduced a digital asset trading platform, enabling the digitization, issuance, and distribution of real assets, ranging from commodities to securities.

In mobility, KONAI launched “E-eum Taxi” in Incheon, leveraging its experience operating the “Dongbaek Taxi” service, which successfully competed with Kakao Corp. in Busan. The company plans to expand its taxi-hail service to other regions.