Samsung Pay will reportedly integrate Kakao Pay in South Korea. It’s likely because Apple Pay has got the green light to begin servicing in the Korean market.
According to Koreabizwire sources (via SammyFans), Samsung is in talks with Kakao Corp. to mutually integrate mobile payment services between Samsung Pay and Kakao Pay in Korea. This partnership could let Samsung Pay users make online payments and MST-based offline payments (magnetic secure transmission) via the Kakao Pay app.
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As a reminder, the South Korean tech giant signed a business agreement with Naver Financial Corp. last month. The agreement cleared the way for Samsung Pay to be used at over 550,000 Naver Pay-affiliated online stores.
Naver Pay and Kakao Pay are the top two mobile payment service providers in South Korea. With collaboration with both firms, Samsung is attempting to establish its mobile payment ecosystem by expanding the usability of Samsung Pay.
Apart from this, a partnership with Samsung Pay would benefit Naver and Kakao by overcoming the limit of using QR codes or barcodes for offline payment, as well as contributing to increasing the number of affiliated stores where their payment services can be used.
It’s worth mentioning that Apple is rapidly targeting Samsung in different fields in the industry. With Apple Pay’s debut in South Korea, Samsung may face tough competition, which has no challenging rival in the country at present.
