With Toss Bank joining Shinhan Card and KB Kookmin Card in postponing the launch of Apple Pay, the expansion of the service in the domestic market has hit a snag. Card companies will renew their Samsung Pay contracts with Samsung Electronics in July–August, and some have reportedly already received draft agreements indicating a possible fee increase. As the Samsung Pay fee issue emerges as a key variable blocking the spread of Apple Pay, tension in the industry is rising.
According to the financial sector on the 27th, Toss Bank recently delayed the introduction of Apple Pay based on a decision by its management. Toss Bank received approval for its terms review to introduce Apple Pay in January this year. However, with the service launch delayed, user expectations have somewhat cooled.
Card companies that had pushed to introduce Apple Pay ahead of Toss Bank are also postponing their launch timelines one after another. Shinhan Card finished its terms review in Dec. 2024 and completed technology development and internal testing, but it has delayed the rollout several times. A March launch this year was initially considered likely, but there has been no news so far. KB Kookmin Card has also reportedly completed the terms review related to Apple Pay recently, but no launch schedule has been set.
The Samsung Pay fee issue is cited as the backdrop for financial firms delaying the adoption of Apple Pay. Since the launch of Samsung Pay in 2015, Samsung Electronics has not charged separate fees to card companies. In contrast, Apple Pay, a latecomer, is demanding a fee of about 0.15% per transaction. This reportedly raised fairness concerns within Samsung Electronics, which has delivered draft contracts to some card companies indicating a possible fee increase. Samsung Electronics renews its Samsung Pay contracts with the card industry every July–August.
If Samsung Pay raises its fees, the burden on card companies will inevitably increase. According to the Bank of Korea and Samsung Electronics, the annual transaction value of the simple payment market in 2024 is about 350 trillion won, of which about 25% (about 88 trillion won) is conducted through Samsung Pay. If Samsung Electronics sets fees similar to Apple Pay, card companies would have to pay around 130 billion won in fees annually. In this market structure, if fee imposition becomes a reality, card companies facing greater expense burdens would inevitably become more cautious about introducing Apple Pay, analysts say.
An industry official said, "From the card companies' perspective, it is not easy to adopt Apple Pay while shouldering the Samsung Pay fees, which account for a much larger share of payments," adding, "The Samsung Pay fee policy is acting as the key variable determining the spread of Apple Pay." Another industry official also said, "It seems card companies are watching Samsung Electronics closely and weighing the timing of adoption."
However, it is unclear whether this move to increase fees will actually proceed. The Financial Supervisory Service is monitoring the situation in the industry out of concern for increased consumer burdens. Financial Supervisory Service Governor Lee Chan-jin recently raised the issue of Samsung Pay fees at a press briefing, saying, "If new fees related to card companies are imposed, they will inevitably be passed on to consumers."
Regarding this, a Samsung Electronics official said, "Nothing has been decided regarding whether to raise Samsung Pay fees," adding, "We understand that reviews are being conducted in multiple directions."