KakaoTalk to launch mobile cash transfer service

KakaoTalk, the leading South Korean messenger app, is introducing a mobile money transfer service on Nov. 11, local banks said Tuesday.

Bank Wallet Kakao, which is connected to its namesake messaging app with 35 million users, will allow users to transfer up to 100,000 won ($93) per transaction to friends and store up to 500,000 won in the account. 

The new cash service is jointly offered by the nation’s 16 major banks, including KB Kookmin, Shinhan, Hana, Woori, NongHyup, Industrial Bank of Korea, Korea Exchange Bank and Standard Chartered Bank.

“KakaoTalk will serve as a platform connecting users to the money transfer services offered at local banks,” said Lim Sun-young, a Kakao representative.

The Korea Financial Telecommunications and Clearings Institute said the app can be used to withdraw money from ATMs and pay at partnered stores.

In September, KakaoTalk launched KakaoPay, which lets users forgo cash and plastic and pay merchants with the tap of a smartphone, vowing to become an e-trading heavyweight.

Analysts said local banks appeared to be leveraging Kakao’s popularity and the persistent user loyalty.

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