As Viva Republica (Toss), which offers a simple payment service, and Naver Pay compete to roll out smart terminals, Hyundai Card is benefiting. Hyundai Card is the only domestic card company to introduce Apple Pay (a payment service provided by U.S. IT company Apple), but stores where it can be used are limited due to the issue of distributing terminals with near-field communication (NFC) functionality. Samsung Pay, provided by Samsung Electronics, can be used on existing payment devices without NFC.
Toss began distributing Toss Front, a smart terminal from its subsidiary Toss Place, in Mar. 2023. In addition to NFC and contactless payments, Toss Front also supports Face Pay, a facial recognition payment. A Toss official said, "Toss Front, which numbered 30,000 in Mar. 2024, had been distributed to 330,000 merchants as of Apr. this year."
Naver Pay began distributing its smart terminal, Npay Connect, in Nov. last year. A Naver Pay official said, "It is still in the early stage, but we are reaching our targets faster than expected. We are distributing Npay Connect not only to franchises but also to small business stores."
Hyundai Card is smiling as it watches the competition between the two corporations. Existing merchants have no incentive to replace their terminals by incurring an expense, but Toss and Naver Pay are effectively replacing the terminals for free.
A Hyundai Card official said, "Although contactless payment systems spread worldwide due to COVID-19, only Korea still relies on the older MST (Magnetic Secure Transmission) method," adding, "Korea already has a highly advanced card payment system, so it is only a matter of time before the gap between the global standard NFC and the domestic payment infrastructure is bridged."