SEOUL, February 19 (AJP) - Samsung Electronics is moving to introduce fees for its Samsung Pay mobile payment service this year, following Apple Pay's growing presence in South Korea's digital payments market, according to financial industry sources Wednesday.
Samsung Electronics, which has not charged card companies any fees since launching Samsung Pay in 2015, recently met with lawmakers and card companies to discuss implementing service fees.
The discussions come as Apple Pay, which charges a 0.15 percent fee through Hyundai Card, expands its partnerships with major Korean card issuers including Shinhan and KB Kookmin.
Industry observers expect Samsung's decision on fees to be finalized around August when the company renews its service operations contracts with card companies.
A Samsung Electronics official said while "nothing has been confirmed," any fee revenue would be returned to customers and small business owners through marketing benefits.
Mobile device payments have surpassed physical card usage in South Korea, accounting for 52.1 percent of transactions in the first half of 2024, according to the Bank of Korea.
However, industry experts estimate that if Samsung Pay implements fees similar to Apple Pay's rate, it could add an annual burden of 70 billion won to card companies.
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