‘Wearable Finance’ market that makes payments through Smart Watches is slowly becoming more active.
As Samsung Electronics and LG Electronics are commercializing development of equipment that uses NFC linkage, banks and card companies are also entering ‘Pay War’.
It seems that another generation of Fintech 408 simple payment will take place as development process of adding not just simple financial transactions but also transportation card transactions and general credit card functions is taking place.
According to financial world, work that links variety of payment functions to Samsung Electronics, LG Electronics, Apple Smart Watches is taking place.
It is predicted that corresponding service will be introduced through mobile application method at the same time when Samsung’s Gear S2 becomes commercialized.
When past wearable equipment’s payment methods were done by placing equipment onto barcode reader or passwords or fingerprint recognitions, BC Pay can be settled by touching NFC DONGLE terminal with wearable equipment.
After applying Token method that makes payments safely by virtual card numbers, it introduced for the first time eSE (Embedded Secure Element) payment method that makes transactions by saving card information into an internal security chip in Smart Watch.
It can make a payment without having Smartphones or being connected to mobile communication network.
It was able to resolve previous wearable payment service’s inconvenience of having Smartphones in possession all the time to make a payment.
After BC Pay service gets released, it will first be applied in Woori Card then members of other card companies such as Hana Card, City Card, and others will also be able to use it afterwards.
KB Kookmin Card also started contacting Samsung Electronics and LG Electronics behind the scenes to link its payment with their Smart Watches.
“We are currently looking for a way to cooperate with Samsung and LG to link card payments with wearable equipment.
After Samsung Pay, most of card companies will participate in linking card payments with Samsung’s wearable equipment.” said one person that is associated with Kookmin Card.
Prior to this, Shinhan Card also commercialized South Korea’s first application for Apple Watch. Banks are also in the midst of developing wearable equipment linkage.
Nonghyup Bank is pushing for co-development of NFC-based payment with BTworks to accelerate ‘NH Watch Banking’.
It will try to make even payment functions possible through NH Watch Banking in second half at the earliest.
Woori Bank and Shinhan Bank also started working on payment settlements and not just on simple transactions and ATM withdrawals and deposits.
According to research report from Tractica, which is U.S. IT research and consulting firm, expected payment amount based on wearable will increase from $3.1 billion in 2015 to $500 billion in 2020.
It predicted that wearable equipment payments especially will be regularized through NFC or RFID methods.
Staff Reporter Gil, Jaeshik | firstname.lastname@example.org