On March 21, 2023, Apple Pay will begin service in Korea. Find out about the available card services of partner card company Hyundai Card. We also look at the domestic penetration rate of contactless card terminals that can use Apple Pay.
index
Apple Pay’s cooperative card company, Hyundai Card
Apple Pay terminal type (NFC method) and domestic service coverage
Apple Pay terminal (NFC method) penetration rate is less than 10%
Preparing transportation card partnership
Types of Hyundai Cards that can be used with Apple Pay
Types of Hyundai Cards currently being prepared for use with Apple Pay
Domestic simple payment market analysis
How to Set Up Apple Pay in iPhone Wallet
Apple Pay How to make contactless payments with Apple Pay
Fix Apple Pay registration error
Hyundai Card logo and Apple Pay logo
Apple Pay’s cooperative card company, Hyundai Card
Users with iPhones and Hyundai Cards will be able to conveniently use mobile phones to pay without the physical card at stores with compatible terminals. It is expected that the number of Apple phone users who want to issue a Hyundai Card will increase more after the start of Apple Pay’s full-scale use.
Although the Financial Services Commission paved the way for Apple Pay to be introduced to all credit card companies, since it takes time for other card companies to actually contract with Apple Pay, Hyundai Card is expected to be able to exert a monopoly effect during that period.
Apple Pay terminal type (NFC method) and domestic service coverage
Hyundai Card users can proceed with the payment service using Apple Pay using iPhone and Apple Watch. We are installing terminals that can process Apple Pay at several Hyundai Card member stores. The type of terminal that can use Apple Pay is only available for NFC (contactless) payment terminals. Up to now, the installation rate is estimated to be approximately 5-10%. Most offline terminals in Korea are equipped with MST (Samsung Pay contact type) terminals.
Apple Pay terminal (NFC method, contactless) penetration rate is less than 10%
The penetration rate (about 5% to 10%) of Apple Pay’s NFC (Near Field Communication) terminal is very low. This reality could prevent Apple Pay from becoming as popular or expanding as expected. So far, Shinsegae Group affiliates (E-Mart, department stores, outlets, Starbucks, etc.) are not planning to accept Apple Pay right away.
Preparing transportation card partnership
Since the partnership with the prepaid transportation card company has not yet been established, the function as a transportation card cannot be used. It is known that KORAIL is checking whether Rail Plus (a prepaid transportation card of a Korail subsidiary) that can be used in subways and buses nationwide can be used with Apple Pay.
Types of Hyundai Cards that can be used with Apple Pay
This is a Hyundai Card that can be used in Apple Pay.
Only credit cards in your name (family card, corporate card) are accepted
Only check cards (Visa, MasterCard, domestic cards) are accepted
Hyundai Card currently being prepared for Apple Pay
This is a type of Hyundai card that has not yet been converted to Apple Pay.
Amex Century On Design Card
Amex, Diners, UnionPay cards
prepaid card
gift card
Corporate name corporate card
Domestic simple payment market analysis
For Pay, the effect of preoccupying the market is important, but there are also observations that Apple Pay will not pose a major threat to existing payment providers. In 2023, the market share of Samsung mobile phones accounts for 63% of the domestic market, accounting for about 24% of the entire pay market. Therefore, in order for Apple Pay to increase its market share, it is analyzed that the share of the domestic iPhone should first rise significantly. Currently, the market share of Apple mobile phones is approximately 30%.
Korea-Smartphone-Share-February 2022-February 2023
As of the first half of last year, the daily average amount of simple payment in Korea was about 720 billion won.
Samsung Pay (mobile phone manufacturer) accounted for 24%,
Financial companies (including card companies and banks) accounted for 26%,
Naver, Kakao, KG Inicis, etc. (electronic finance companies) occupy 50%.
Other countries, such as China and Japan, also have poor performance for Apple Pay. In the case of China, internet platform companies have already preoccupied the market, and in Japan, the credit card function was installed in Apple Pay after domestic operators had already preoccupied the market.
However, I think it will gradually expand due to the introduction of new technology and the use of iPhone by the MZ generation.
After registering the card on Apple Pay, you must receive a text message from Hyundai Card indicating that the card has been registered on Apple Pay.
If you do not immediately receive a text message from Hyundai Card that you have registered for Apple Pay, it is because there are too many registered users and it takes a long time to process. We’ll have to wait a bit longer.
How to Set Up Apple Pay in Wallet on iPhone
Adding a debit, credit, or prepaid card to your iPhone’s wallet: Currently only available with Hyundai Card
1. Tap the plus sign in Wallet: You may be asked to sign in with your Apple ID
2. Add a new card: Tap the debit or credit card –> tap Continue, then position the card so it fits in the frame or enter card details manually
3. Add a card from your bank or card issuer’s app
Your card issuer may determine if your card is eligible for Apple Pay and may ask you to provide additional information to complete the verification process.
Apple Pay How to make contactless payments with Apple Pay
If location service is turned on, the location of your iPhone is sent to Apple and the card issuer (Hyundai Card) at the time of payment to prevent fraud.
If you store credit and debit cards in the Wallet app on your iPhone
You can make secure contactless (NFC) payments with Apple Pay at many places (stores, marts, restaurants, etc.).
You can ask Siri something like “Show me a cafe that accepts Apple Pay.”
Alternatively, you can use it where there is a logo indicating that Apple Pay payment is available.
Pay with your default card on an iPhone with Face ID
1. Double-click the side button
2. When the default card appears on the screen, authenticate using Face ID or enter your password
3. Hold the top of the iPhone close to the card reader until Done or a check mark appears on the screen
Pay with your default card on a Touch ID-enabled iPhone
1. Place your finger on Touch ID
2. Hold the top of the iPhone close to the card reader until Done and a check mark appear on the screen
Fix Apple Pay registration error
There is an error that the card number is different, a card cannot be added, and this card is not supported.
[Apple Pay registration error] This card is not yet supported by the regional settings and card issuer of this device