[Sponsored Report] KB Kookmin Card sets sights on mobile tech
The bank’s most recent release is the UnionPay Mobile Card, which enables mobile payments abroad using cards issued in Korea through smartphone USIM chips. This service will first go into effect at member stores in China.
A collaborative project between KB Kookmin Bank, UnionPay International and LG U+, the UnionPay Mobile Card allows consumers to use their foreign credit cards at member stores without using the actual plastic card.
This service is made possible by the smartphone USIM chip. Because UnionPay’s touch payment service will be made compatible with LG U+ USIM chips, customers do not need to purchase an additional chip in order to use the service.
The mobile cards will be accepted at nearly six million UnionPay member stores equipped with NPC readers in China, Hong Kong, Taiwan, Singapore and elsewhere. The card will be available to KB cardholders who possess Android smartphones that support NFC payment.
To apply for a card, go to KB Kookmin Card’s official homepage, contact the service center (1588-1688) or visit a KB Kookmin Bank branch. There is no additional fee to apply.
The UnionPay Mobile Card is compatible with 13 of KB Kookmin Bank’s credit cards, and the bank is planning to expand the range of compatible products to include check cards.
Following the release of the UnionPay Mobile Card, KB Kookmin Card is working on enabling payments using the company’s mobile app Kmotion at online merchandisers and in shops overseas. In the past, mobile payments at foreign member retailers were frequently blocked due to incompatible technologies.
KB Kookmin Card’s future plans in the global fintech sector also include strengthening collaboration with global partners so that KB clients can freely use the mobile payment service anywhere they want.
To fulfill this objective, KB signed a memorandum of understanding last April with MasterCard, promising cooperation in the fintech-based mobile payment sector. The ongoing effort includes establishing infrastructure for cloud-based payments that will enhance security and compatibility in the global mobile payment system.
KB has also made early moves to enter the payment gateway industry.
Last May, KB Kookmin Card’s mobile card members surpassed four million, and earlier this year, the company organized a fintech task force to take preemptive measures for the future payment market. The two key factors the company is focusing on are strengthening partnerships with relevant industries and developing differentiated mobile payment products such as the KB Kookmin Fintech Card.
The companies KB Kookmin Card is currently collaborating with in the PG sector include Samsung Pay (by Samsung Electronics), KakaoPay (by Kakao and LG CNS), Paynow (by LG U+) and Kpay (by KG Inicis).
In product development, the company intends to keep its strategies “fun” by developing new methods using non-financial platforms such as beacon technology and the Internet of Things. By doing so, KB Kookmin Card aims to diversify its access routes as a way to attract potential clients.
One example is the Appcard Order Service, an online-to-offline service launched last February. This service allows clients to pay with the Kmotion app - also called an appcard - at member retailers that operate exclusively online, such as taxi-hailing and delivery services.