SEOUL, Sept. 20 (Korea Bizwire) – Kakao has announced that it has added QR code identification technology that will enable users to process payments with a simple snapshot to its Kakao Pay service.
The technology is currently available on Kakao’s Chinese counterparts Alipay and WeChat Pay. Users snap photos of QR cards in shops and restaurants and the app withdraws the billed amount from the buyer’s account and remits it to the seller’s.
A 1 million won daily limit will be placed on spending on Kakao Pay.
A Kakao insider, commenting on the new feature, said that the tech giant was expecting the new service to be used primarily at businesses like flea markets and for donations, because receipts cannot yet be generated, but added that the company was planning on releasing a QR code payment processing system with receipt generating capabilities by year’s end or early next year.
The QR payment system, if fully realized, would be a win for business owners, as they could replace cash registers with QR code stickers, leading to savings and improved convenience.
Tech experts see Kakao’s announcement as a big step forward towards enhancing the target pool of potential users. In the past, Kakao Pay could only be used for limited online exchanges like the Kakao Gift Shop, putting it at a serious disadvantage when compared to competitors with offline payment capabilities like Samsung Pay and Payco.
The company insider said that Kakao is currently in the process of speaking with brick and mortar businesses to ensure users have a greater diversity of options.