Korean consumers who sign up for a Hana SK Card credit account and pick up a new '13.56MHz RF SIM' via a retail partner will then be able to store multiple credit, loyalty and membership cards and discount coupons on their mobile phone.
Korean mobile network operator SK Telecom has launched T Smart Pay, a new mobile contactless service offered in cooperation with Hana SK Card, the card issuer in which it took a 49% stake in December.
T Smart Pay customers will be able to use the service to make payments at retailers equipped to accept Visa PayWave contactless card payments and will be able to receive both discount coupons and membership points.
Customers will be able to store up to eight credit cards in their mobile phones, as well as up to 30 membership/point/mileage cards and 50 coupons.
At the point of sale consumers will be able to choose which credit card they would like to pay with and, if they are a member of a loyalty programme, will automatically receive any special discounts or loyalty points on offer. They will also be able to get coupons by downloading them from mobile internet websites or from in-store kiosks, and will be able to take part in promotions and competitions organised by retailers to get special discount coupons and win promotional gifts.
Credit card information including transaction details, remaining credit limit and payment receipts will be accessible to T Smart Pay customers via their mobile phone. Membership card information such as totals for used, stored and remaining points will also be instantly available.
Consumers who sign up for the service download the T Smart Pay application, developed by SK Telecom, directly to their "financial services-enabled USIM card".
"T Smart Pay is expected to bring benefits to all stakeholders: Customers, affiliated stores and credit card companies," says SK Telecom:
By offering the integrated payment and settlement service, T Smart Pay will allow customers to save purchasing cost by leading them to make wiser and more informed purchasing decisions.
In addition, affiliated stores are expected to enjoy increased sales as they enhance customer satisfaction through better customer relations management made possible via T Smart Pay. They will also benefit from reduced cost of issuing coupons and flyers.
Furthermore, credit card companies are expected to benefit from lower plastic credit card issuance and replacement cost, and increased customer loyalty compared to competing credit card companies.
T Smart Pay will be offered first via Home Plus, a discount retailer with 113 branches which is jointly operated by Samsung and UK retailer Tesco. Home Plus will enable customers to sign up for a Hana SK Card plastic card and will also be responsible for delivering their new SIM card. "Then the company plans to introduce the service to other large-scale discount stores, department stores as well as franchise stores," the operator explains.
"SK Telecom expects T Smart Pay to help customers make the most economical purchasing decisions," says Sung-Cheol Hong, executive vice president and head of the service division at SK Telecom. "Further plans are underway to constantly upgrade this service based on SK Telecom's leading ICT and we will make proactive efforts to enter the overseas markets to become the global leader in the field of smart payment."
The service uses a technology which SK Telecom describes as '13.56MHz RF SIM'. "This method follows ISO7816 or 14443 standard for electronic identification cards including smart cards," the company told NFC World.