Kakao and electronic financial business operator LG CNS, bring you Kakao Pay, a breakthrough e-commerce payment option for KakaoTalk users in South Korea. With 93 percent of smartphone users in Korea currently using KakaoTalk, the new service is expected to provide a significant boost to Korea’s growing e-commerce industry.
LG CNS will serve as the back-end payment gateway to Kakao Pay, which limits the inconvenience found on conventional mobile payment systems available in Korea which are more restrictive. Adding to the convenience, Kakao Pay supports cards from nine major Korean financial institutes, and users with cards from multiple companies can use them all through Kakao Pay. Users can register up to 20 non-corporate credit and debit cards to their accounts via the Kakao Pay menu found within the Settings of their KakaoTalk app. Subsequent transactions require only a user-set password, instead of multiple verifications via SMS or authentication certificates.
In addition to the significantly streamlined payment process, Kakao Pay boasts the highest level of security among mobile payment services. It employs LG CNS’s MPay module, which was given a "Gagun" (A) rating by Korea’s Financial Security Service (FSS) on July 11, 2014. As such, Kakao Pay users will be able to make online purchases exceeding the previous KRW 300,000 (approx. USD 291) limit without such certificates starting the fourth quarter of 2014.
Additionally, Kakao Pay only accepts the registration of credit cards issued in the same name that the user’s smartphone is registered under and the service can only be accessed through a single device to deter any illegal or fraudulent activity. Kakao Pay’s user data management consists of combining the user’s card and transaction information then allocating the encrypted data in separate locations, a security procedure considerably advanced to those employed currently by major global payment services.
Following the initial launch, Android and iOS users in Korea can find Kakao Pay as one of the payment options in KakaoTalk’s in-app Gift Shop, a mobile marketplace of vouchers for or delivery of physical goods that can be bought and gifted. LG CNS is in the process of extending Kakao Pay to e-commerce sites and credit card affiliates.
LG CNS will serve as the back-end payment gateway to Kakao Pay, which limits the inconvenience found on conventional mobile payment systems available in Korea which are more restrictive. Adding to the convenience, Kakao Pay supports cards from nine major Korean financial institutes, and users with cards from multiple companies can use them all through Kakao Pay. Users can register up to 20 non-corporate credit and debit cards to their accounts via the Kakao Pay menu found within the Settings of their KakaoTalk app. Subsequent transactions require only a user-set password, instead of multiple verifications via SMS or authentication certificates.
In addition to the significantly streamlined payment process, Kakao Pay boasts the highest level of security among mobile payment services. It employs LG CNS’s MPay module, which was given a "Gagun" (A) rating by Korea’s Financial Security Service (FSS) on July 11, 2014. As such, Kakao Pay users will be able to make online purchases exceeding the previous KRW 300,000 (approx. USD 291) limit without such certificates starting the fourth quarter of 2014.
Additionally, Kakao Pay only accepts the registration of credit cards issued in the same name that the user’s smartphone is registered under and the service can only be accessed through a single device to deter any illegal or fraudulent activity. Kakao Pay’s user data management consists of combining the user’s card and transaction information then allocating the encrypted data in separate locations, a security procedure considerably advanced to those employed currently by major global payment services.
Following the initial launch, Android and iOS users in Korea can find Kakao Pay as one of the payment options in KakaoTalk’s in-app Gift Shop, a mobile marketplace of vouchers for or delivery of physical goods that can be bought and gifted. LG CNS is in the process of extending Kakao Pay to e-commerce sites and credit card affiliates.