Banks release new credit cards with OTP chips

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Banks release new credit cards with OTP chips

In line with the government’s policies to encourage new financial technology, domestic banks are rolling out new ways to make mobile and online banking more convenient.

On Tuesday, the Investment Bank of Korea (IBK) introduced the first-ever credit card embedded with a one-time password (OTP) chip, making it easier for customers to make transactions online or on their phones.

Users push a small button on the new credit card, and an OTP number appears on the card itself.

For security, Korea’s online banking system relies on users inputting an OTP every time they conduct certain transactions such as fund transfers.

Until now, users have only been able to generate the OTP using a small electronic device or separate card containing different pairs of numbers, which can be inconvenient to carry.

IBK partnered with Smart Innovation, an OTP maker, in order to produce the new card, overcoming technological barriers in doing so. It had previously been considered impossible to plant an OTP chip in 0.84-millimeter (0.03-inch) credit cards, which is the global standard for card thickness.

“We expect the new card will help customers make mobile transactions more conveniently,” a bank spokesman said.

According to data by the Bank of Korea on Monday, the total number of mobile banking users recorded 71.8 million as of September, a record high. About 60 million used smartphone banking.

Standard Chartered Korea also launched a similar OTP card on Monday, called the Sigma OTP Card.

The bank cooperated with Mirae Technology, a local payment technology leader, to produce the card.

Standard Chartered Korea said its OTP card can meet customers’ needs for convenience and security. The OTP number will disappear from the card surface 90 seconds after the button is pressed, allowing the card to have a long battery life, the bank explained.

In terms of durability, the OTP card is comparable to normal credit cards.

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