Samsung Electronics recently notified domestic credit card companies that it would not extend existing contracts related to Samsung Pay.
Following Apple Pay, which landed in Korea earlier this year, there is a prospect that Samsung Pay may also go through the process of charging fees.
Reporter Eom Yoon-ju reports.
We asked citizens who use Samsung Pay why and when they use it.
[Jungbin Park / Jamsil-dong, Seoul: I don’t carry a separate wallet, and I use Samsung Pay for payments and T-money. Wherever I go, I always think it’s convenient when I pay because it’s an affiliate store.]
[Kim Cheol / Mokdong, Seoul: It’s annoying to take out (a wallet) and when I do, I usually carry my smartphone in my hand, so I think there are many cases where I turn it on and use it right away.]
It has been 8 years since it was introduced in Korea with accessibility and convenience as its strengths.
There are over 16 million users of Samsung Pay.
However, Samsung Electronics recently notified the domestic card company that it would not extend the existing contract that does not receive Samsung Pay usage fees.
What is the background for Samsung Electronics, which has been automatically renewing contracts without separate renegotiation, suddenly changed its stance?
The biggest reason is the analysis of the market that Apple Pay, which landed in Korea earlier this year, is the reason.
Currently, Hyundai Card pays Apple a 0.15% fee per transaction, while Samsung Electronics has not received a fee from the credit card company.
For this reason, there is a prospect that Samsung Pay is also going through a paid process.
First of all, Samsung Electronics did not say that nothing has been officially decided yet.
However, card companies are in an atmosphere of concentrating on preparing countermeasures in preparation for such a move.
[Card company A official: We are currently monitoring the situation because the credit card company does not have the initiative in the contract.]
[Card company B: A multilateral review will be conducted on ways to compensate for the loss of the card company… .]
The problem is that if Samsung Pay’s commission fee becomes a reality, the cost burden of card companies could be passed on to consumers.
This is because there are no options left for credit card companies, which are recording losses every day due to increased procurement costs due to rising interest rates and lowered merchant card commission rates.
[Kim Dae-Jong / Professor of Business Administration, Sejong University: Card companies are also very difficult and difficult. They are doing this, but if Samsung Pay goes to the structure where they receive card fees, the card companies will also have a considerable burden… . The conclusion may be borne by the consumer again.]
Even if Samsung Pay is charged, the financial 먹튀검증authorities are only repeating the position that the principle that card companies should not pass the burden on to consumers or merchants is the same.
In August, each card company will sign a new contract with Samsung Electronics over Samsung Pay, and attention is focused on how the fee issue will be discussed at the negotiating table.
This is YTN Eom Yun-ju.