KT, BC Card seek convergence to lead mobile payment market

Mobile payment services can be an answer to the current controversy over high commission fees for credit card payment, KT chairman Lee Suk-chae said Monday.

KT Corp., which became the largest shareholder of BC Card in February, announced in the day the company’s new vision to expand business into mobile payment services.

“We would not try to compete with other credit card or communications companies but will offer payment services for them to further grow,” Lee told reporters at KT’s headquarters in Gwanghwamun, central Seoul. 

Amid signs of a credit card bubble here, KT suggested the convergence of IT and finance industries help improve efficiency at credit card firms.

According to the company, communications technologies such as smartphones, tablet PCs and cloud computing would more increase the efficiency of mobile payment services.

KT estimated about 900 billion won could be saved every year under the mobile-based payment services of “cardless, boundless and receiptless.”

“We cannot say from when credit payment fees would decrease because it is a very complicated issue. But we will do our best to introduce diverse technologies and services that lower the fees,” Lee said.

KT and BC Card have also agreed to make efforts to support smaller vendors by offering exclusive mobile services and advertisement platforms.

In order to improve convenience of card payment at traditional markets, the two companies plan to add more infrastructure and efficiency system to better manage “micro payments.”

BC Card also expected the new partnership would help it enter global markets by joining KT’s projects such as the international mobile payment services that are currently developed jointly along with Chinese and Japanese operators.

Meanwhile, in a separate event on Monday, KT signed a memorandum of understanding with Yonsei University Health System to set up a joint venture for “smart healthcare” business early next year.

The joint company, KT said, aims to develop healthcare services based on information communications technology and export the total solution, called “smart hospital,” to other countries.

It also will create a new data-collecting system, through which hospitals and clinics can share patients’ medical information such as clinical data, changes in health conditions and genetic analysis.

By Lee Ji-yoon (jylee@heraldcorp.com)