A model demonstrates Samsung Pay in this file photo released by Samsung Electronics.
SEOUL, July 4 (Korea Bizwire) — South Korean credit card companies are expressing concerns about the potential cost burden as Samsung Electronics Co. considers turning its mobile payment service into a paid offering and implementing commissions on them.
According to industry sources, Samsung is currently in talks with card issuers as its contracts with the credit card companies for Samsung Pay are set to expire in August.
Since its launch in 2015, Samsung Pay has not imposed commissions on credit card companies.
However, the situation changed after Apple Inc. introduced its Apple Pay service in South Korea in March and decided to receive commissions from Hyundai Card through an exclusive partnership.
Although the specific contract details have not been disclosed, it is believed that Hyundai Card bears a commission of 0.15 percent.
If Samsung Pay imposes a similar commission, it would result in an additional annual burden of at least 70 billion won (US$53.7 million) for credit card companies, according to market watchers.
J. S. Shin (js_shin@koreabizwire.com)
