February 19, 2007

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  NEWS: Mobile Pay Launches in S. Korea, Thrives in Japan

  Earlier this month, the leading mobile company in South Korea, rolled out a phone-payments system targeted towards 30,000 consumers. Citing the massive success of a mobile purchase program in Japan, SK Telecom and Visa expressed confidence in the shared venture.

  
  The Japanese quickly picked up on mobile purchasing, and now, make hundreds of thousands transactions daily with their mobile handsets. The mobile technology is common in Japan, where most grocery stores and railway ticketing stations are equipped with the devices that make purchases possible. The program was initially considered a risky sell in Japan, where cash is king (due to the practically non-existant record of street crime in big cities), and consumers generally only hold one credit card. Until recently, Japanese consumers routinely paid their utility bills in person, in cash – but trends indicate that they like the ease and convenience of their keitai, as mobile phones are called. The phones are considered secure, as they can be locked remotely if lost or stolen.

  
  A company called Edy has established itself as the giant among mobile purchasing companies in Japan, many of which feature incompatible technology. Edy has contactless-payment machinery in some 43,000 stores, and runs on technology that is, in-part manufactured by Sony. Credits for the phones can be purchases at most participating ATMs, or at banks and/or online. Some employers are even jumping on the keitai bandwagon by equipping employees' mobiles to serve as ID badges and allow purchases at company cafeterias and other locations.

  
  Obviously, South Korea is looking to Japan as a beacon as it introduces its mobile technology
   

  
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