Mobile payment and digital gift card platform Kona Money announced

Print

Email

Kona Money, a mobile payment and digital gift card platform has been announced by South Korean smart card provider Kona. The platform is currently in beta phase available with some banks and retailers. One of the fundamental services provided by Kona Money will be buying and selling of merchant gift cards. The mobile app can be topped up with bank account or credit card and transactions can be made through prepaid balance. Several payment cards can be linked to one prepaid card and payments can be made online or offline. Offline payments are facilitated by NFC, QR code or barcode scanning supporting POS terminal payment facility.

Mobile payment segment has grown significantly in South Korea over past four years owing to advanced mobile internet infrastructure. Consumers prefer mobile commerce due to its convenient and quick service. Every 1 in 6 consumer uses mobile payment service in South Korea. Around 23% consumers use mobile payments once a month and another 23% do so once or twice a week. Near Field Communication (NFC) technology is most popular in this segment. Secure and reliable mobile payment services are in high demand in South Korea which opens up opportunities for financial institutions for gaining market share in this segment and a steady source of revenue generation. Kona Money taps into this opportunity effectively with its service line.

Transaction fees on Kona Money is one-fourth compared to conventional credit card fees, hence it is likely to attract higher consumer usage. Moreover, gift card selling facility provided to merchants will attract significant customer base. Reaching out to retailers in addition to retail consumers is expected to increase profit margins for Kona Money. Due to be launched among masses later this year, it is predicted to gain significant position in the market in mobile payment segment.

To know more and gain deeper understanding of mobile payment industry in South Korea, click here.