Shinhan Card vows ‘smart’ reform

Card issuers need new DNA to do business in an era of mobile payments, Shinhan Card president Wi Sung-ho said Saturday.

“A sea change that could rattle the whole card industry is underway,” Wi said during a debate session with Shinhan employees. “Card firms should no longer limit themselves to issuing plastic but should pursue going smart.”

Underlining the need for the new attempts to change the paradigm, he urged high-ranking officials to gain hands-on experience in mobile payments via global e-commerce sites such as Amazon and eBay.

“We need to be keen about the fast-changing payment technology and environment so as not to get left behind,” the president added.

Local card issuers, including Shinhan Card, have been stepping up the transition to smart payment systems.

Last week, major card firms agreed to join popular mobile messenger KakaoTalk’s KakaoPay service, which will let users forgo cash or plastic and pay merchants with the tap of a smartphone.

The participating companies include Shinhan Card, KB Kookmin Card, Samsung Card, Hyundai Card, BC Card, Lotte Card and Hana SK Card.

According to KakaoTalk, more than 1.2 million people have signed up for the service since its launch on Sept. 5.

Over the past decade, domestic card firms have dabbled in mobile payment systems using near field communication technology, which enables devices like phones and receivers at cash registers to transmit information through a narrow radio frequency.

By Suk Gee-hyun (monicasuk@heraldcorp.com)