Mobile apps are beginning to embrace the concept of processing mobile payments
Mobile commerce is heating up throughout Asia. People are adopting smartphones and tablets at a rapid rate and they are beginning to demand more mobile-centric services from the companies that they support. These companies are answering this demand by introducing new features to their well used mobile applications. A growing number of mobile apps, that had once been little more than social media tools, are now becoming mobile commerce platforms.
KakaoTalk is planning to facilitate mobile payments beginning next month
KakaoTalk, the largest messenger application in South Korea, is planning to adopt a new feature next month that will allow it to handle mobile payments. Alipay, one of the most used payment applications in China, is also looking to break into the South Korean market. The application is currently trying to comply with the country’s financial laws so that it can serve as an effective payment service. Alipay may have trouble entering into the market, however, because many South Korean financial firms are scrambling to align themselves with KakaoTalk.
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Mobile commerce activity in South Korea is on the rise
In South Korea, the number of registered mobile banking users surpassed 40 million this year. Mobile devices currently account for 43% of all online banking in the country. Mobile payments in South Korea reached $3.1 billion this year as well, with 30% of these payments coming from the mobile shopping space. Kakao Talk will have to prove that it can facilitate these mobile payments effectively if it wants to find a place among those interested in mobile commerce.
Alipay may be able to find a foothold in South Korea with the help of Hana Bank
South Korea’s Hana Bank is one financial organization that is not partnering with KakaoTalk. Instead, the bank has been promoting its own digital wallet, which was launched in 2012. The bank has also partnered with Alipay in order to help bring the application to South Korea. Once Alipay manages to find a foothold in the South Korean market, the partnership with Hana Bank is likely to be expanded.