Tech firms can now offer overseas payments

The Cabinet on Tuesday approved a revised ordinance that will allow non-financial firms, such as financial technology firms, to provide mobile payment services overseas.

Under the revision set to take effect from next Tuesday, Korean people can buy items with mobile payment apps, such as KakaoPay and Naver Pay, at partner stores overseas, according to the Ministry of Economy and Finance.

The move comes as mobile payment apps such as Naver Pay and KakaoPay have been gaining ground in recent years in Korea.

The ministry said the move could reduce transaction fees and strengthen the competitiveness of South Korea’s fintech services.

Korea’s credit card issuers pay global credit card giants - Visa and MasterCard - about 1 percent of overseas transactions in return for using their networks.

Yonhap