The transportation payment service Tmoney began offering Apple Pay features on the 22nd. In Korea, Hyundai Card collaborated with Tmoney to apply the world's first automatic recharge service and has taken support measures. This collaboration is also a major project by Jeong Tae-young, vice chairman of Hyundai Card, aimed at promoting the domestic spread of EMV contactless (international standard for contactless payments) through Apple Pay. In Japan, the introduction of Apple Pay transportation cards has rapidly expanded the proportion and infrastructure of contactless payments.
The Tmoney with the automatic recharge function significantly increases convenience for iPhone and Apple Watch users. Compared to touching (tagging) a physical card at public transportation boarding and alighting terminals, the payment speed was exceptionally faster, making it more convenient. At Tmoney affiliate stores, simply tagging a locked mobile phone to the terminal facilitated immediate payment. There is no hassle of needing to unlock the phone with 'Face ID' like with existing Apple Pay. Another advantage is that there are some affiliate stores where Tmoney can be used even if Apple Pay is not supported.
However, it was disappointing that online payments were not possible and that there were not many Tmoney affiliate stores, so the range of Apple Pay usage did not significantly expand from before. I tried making direct purchases with Apple Pay Tmoney for a day.
Apple Pay Tmoney can be used freely after simply linking it with Hyundai Card through Face ID. Users can recharge the prepaid transportation card Tmoney with amounts ranging from 10,000 to 50,000 won through Hyundai Card. When the amount runs out, it is automatically recharged, and the balance threshold for automatic recharge can be freely set between 5,000 to 10,000 won. The automatic recharge occurs immediately when the recharged amount is depleted, allowing it to be used essentially like a post-paid transportation card or credit card.
The speedy payment was the biggest advantage. Visa Korea analyzed that EMV contactless payments are 75% faster compared to the existing methods. In fact, when I tagged the top of an iPhone equipped with a near-field communication (NFC) chip at subway gates or bus boarding and alighting terminals, payment was processed instantly. There were frequent cases where physical cards were not quickly recognized when tagged or where payments did not go through correctly, but that problem never occurred while I was using it. Thanks to this, I was able to avoid the unfortunate incident of missing the subway on a hurried commute.
The advantages of using Apple Pay at Tmoney affiliate stores, including convenience stores, were also highlighted. Previously, when paying at a convenience store with Apple Pay, it was necessary to unlock the device using Face ID and then tag it to the terminal. However, with Tmoney, just placing the device on the terminal from the lock screen, like when using public transportation, allows for immediate payment. This saves time compared to when one has to use the Apple Pay credit card service or take out a card from their wallet.
It is also an advantage that Tmoney can be used at places where payment was previously not possible with Apple Pay. Waiting for the subway, I was thirsty and approached a beverage vending machine terminal inside the station with Apple Pay Tmoney, and the payment was processed normally. Although payment was not possible before with Apple Pay, it became usable since it is a Tmoney payment site. Additionally, there are some internet cafes, canteens, and student dining halls where Tmoney payments are possible but Apple Pay payment services are not supported.
There was an expectation that Apple Pay Tmoney could serve as a signal for the expansion of non-contact payments in Korea, but the limitation of still having a restricted payment scope was evident. Currently, there are no places available where online payments can be made through Apple Pay Tmoney, and services such as bus ticket reservations cannot be accessed through the Tmoney application (app).
The fact that the number of Tmoney affiliate stores is fewer than that of existing Apple Pay affiliate stores is also a downside. According to Tmoney's official website, there are only about 33 major franchise affiliate stores, while Hyundai Card Apple Pay is available at about 200 locations. Ultimately, aside from public transportation and some facilities at subway and train stations, it is hard to say that the range of Apple Pay usage has significantly expanded.