KakaoTalk In The Works of Release A Money Transfer System In June.
Korea’s most popular mobile messaging applications, Kakaotalk, will soon allow users to be able to send money to their friends through the use of the messenger sometime during the month of June.
The operator of the applications, Kakao stated that its currently in its final stages of preparations for the the small amount money transfer service up to 100,000 won, in cooperation with banks.
“We are aiming to launch the service in June,” Lee Sir-goo, co-CEO of Kakao, said.
The company will be teaming up with over 15 banks and the Korea Financial Telecommunications & Clearing institute for the Service tentatively dubbed “Bank Wall Kakao.” But it has as of yet to have Hana Bank join in on the partnership.
The service is a KakaoTalked-linked version of Bank Wallet, a mobile money transfer system which the institute developed jointly with a total of 16 local banks.
“If a Bank Wallet user sends money to another user, it is charged on the receiver’s mobile card. The receiver then can use the money for online money transactions or at offline shops having near-field communication (NFC) payment systems,” an official of the KFTC said.
“While a sender currently uses the phone number of the receiver when sending money, with KakaoTalk, the sender will select the receiver from his or her list of KakaoTalk friends,” he said.
The charged money can also be used to purchase items from KajaoTalk or the operator’s other services such as Kakao Style or Kakao Music. To put it simple, its basically for transaction of small amounts of cash, Kakao and the participating banks plan to limit the amount down to 100,000 won.
The KFTC Offical stated that the original date for the launching of this service may have been delayed from March, due to them wishing to further increase the strength behind the cyber security.
“Security and customer information protection has become tighter especially after credit card companies and banks experienced data theft between December and January. We and the banks are double-checking the issue to prevent any possible data breach,” he said.
He stated that each bank is at a different stage in developed the related computer systems, so some of them may not be ready to start during the time of the launching for the service, unfortunately. While regarding the security, the Financial Service Commission and the Financial Supervisory Service are looking into whether the service has enough data protection measures.
The official said the service requires approval from both of the authorities, including the launching for the service be delayed if the they need even more time to finalize confirmation on the security issue.
“The previous mobile payment system has not been widely used. But we expect this service to spread rapidly and bring a new era of financial transaction as almost all smartphone users in the country use KakaoTalk,” he said.