Kakao de­buts its pay­ment plat­form

App linked with bank ac­count can be used for trans­fers, pur­chases

JoongAng Daily - - Business - BY KIM JUNG-YOON kjy@joongang.co.kr

Daum Kakao, the Korea Fi­nan­cial Telecom­mu­ni­ca­tions and Clear­ings In­sti­tute (KFTC) and 13 Korean banks yes­ter­day launched BankWal­letKakao, a mo­bile ser­vice for trans­fer­ring money via KakaoTalk.

Users of KakaoTalk, the na­tion’s lead­ing mo­bile mes­sen­ger, can link their BankWal­letKakao ac­count with up to 25 cards and one “Bank Money” ac­count to man­age trans­fers, on and off­line pay­ments, and to make with­drawals from ATMs.

The ser­vice will be avail­able for An­droid and iOS, and the 13 banks and KFTC will over­see the trans­ac­tions.

BankWal­letKakao’s main pur­pose is to trans­fer “Bank Money” from a vir­tual Kakao-linked ac­count that the app user links to their own bank ac­count. Users can also with­draw money from an ATM with what Daum Kakao calls a “Mo­bile Bank Card” and can make pay­ments at stores that ac­cept the ser­vice.

Pay­ments can be made with Bank Money by click­ing the “charge” but­ton after a bank ac­count is linked with the Kakao ser­vice.

Users can choose be­tween two Bank Money op­tions. They can reg­is­ter their bank ac­count and PIN num­ber after com­plet­ing an au­then­ti­ca­tion process or reg­is­ter on the BankWal­let site first.

The app can also be used to trans­fer money to KakaoTalk friends by click­ing the “send” but­ton. Un­der the “my ac­count” sec­tion, users can send the Bank Money funds stored in their Kakao ac­count back to their orig­i­nal bank ac­count. Com­mis­sion fees on trans­ac­tions dif­fer by bank.

Daum Kakao said that trans­fers through Bank Money are more con­ve­nient than reg­u­lar mo­bile bank­ing.

Ac­cord­ing to Kakao, BankWal­let users can send up to 100,000 won ($91) the same way they would send a mes­sage to a KakaoTalk friend, even with­out know­ing the re­cip­i­ent’s bank ac­count num­ber. “This ease of use and con­ve­nience is ex­pected to help the ser­vice at­tract wide pop­u­lar­ity among users for send­ing and re­ceiv­ing cash gifts and split­ting bills,” said a Daum Kakao spokesman.

Ini­tially, up to 500,000 won can be de­posited into a BankWal­let ac­count, and a per­son can­not send or re­ceive more than 500,000 won per day.

Based on de­mand, the fund limit could be ad­justed in the fu­ture, the company said.

BankWal­let users can also make on and off­line pur­chases us­ing their Bank Money and Mo­bile Bank Card.

Cur­rently, users can make on­line pur­chases us­ing Bank Money at KakaoTalk’s Gift Shop, Aladdin and Hanssem Mall, and ma­jor off­line re­tail­ers in­clud­ing CU, E-Mart, 7-Eleven and Shin­segae and AK Plaza depart­ment stores.

Mo­bile Bank Card can be used at over 75,000 ATMs that have BankWal­let or UbiTouch stick­ers.

Daum Kakao said BankWal­let is very se­cure be­cause trans­ac­tion data is en­crypted for all pay­ments and trans- fers and all bank­ing is con­ducted through the es­tab­lished se­cu­rity sys­tems of fi­nan­cial in­sti­tutes.

In or­der to pro­tect against SMS phish­ing and re­lated fraud, trans­fer no­ti­fi­ca­tion mes­sages are sent through KakaoTalk and must be au­then­ti­cated by the re­ceiver.

“BankWal­letKakao is a next-gen­er­a­tion ser­vice that com­bines fund trans­fers, on­line pay­ments and ATM cards, and users will be able to ex­pe­ri­ence bank­ing ser­vices in a whole new way,” said a spokesper­son for Daum Kakao and the KFTC.

“We hope BankWal­letKakao’s se­cu­rity, con­ve­nience and avail­abil­ity can lay the foun­da­tion for greater in­no­va­tion in the Korean mo­bile bank­ing in­dus­try.”

KakaoTalk has 37 mil­lion users in Korea and BankWal­letKakao is open to users aged 14 or older who have an In­ter­net bank ac­count and a smart­phone regis­tered in their own name.

Au­then­ti­ca­tion is re­quired, so the app does not work with de­vices regis­tered to cor­po­rate ac­counts or with some MVNO phones.

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