Can Apple Pay Conquer Korea?

Apple’s mobile payment and digital wallet Apple Pay was launched in Korea last week and has already racked up over 1 million transactions here.

To respond to the threat, market leader Samsung Pay has accelerated its scheduled tie-up with Naver.

Apple Pay’s biggest merit is speed. It takes less than a minute to register a card on the iPhone, though users have to register the same card on their Apple Watch again if both devices are used. Transaction speed is also very fast, requiring only the press of a button and facial or fingerprint scan.

The difference is down to the technologies. Apple Pay uses Near Field Communication (NFC), while Samsung Pay is mainly configured for magnetic secure transmission (MST) although it can be used for both.

Another advantage of Apple Pay is its compatibility with the Apple Watch, while Samsung Pay cannot yet be used with a Galaxy Watch.

But so far not enough retailers have signed up for Apple Pay to make it worthwhile switching to an iPhone. Around 120 businesses here have adopted Apple Pay, but many more are biding their time.

Apple Pay also lacks Samsung Pay’s option to make cash withdrawals at ATMs.

Samsung is expanding its market presence to keep Apple Pay in check. It joined hands with KEB Hana Bank on Monday to add Samsung Pay for high school students so they can use it in cafeterias or libraries.