SEOUL, Dec. 29 (Korea Bizwire) — A simple, non-Active X online payment service will soon be available in Korea from major credit card companies. Starting December 29, customers will be able to make credit card payments for their online transactions by providing their ID number and a password.
Major Korean credit card companies such as Shinhan Card, Samsung Card, Hyundai Card will launch the new ‘One Click’ service gradually from December 29.
The Korean government announced in July 2014 that it would simplify online payment services to facilitate the use of Korean e-commerce systems for Koreans and international customers. The existing authentication system for online payments of more than 300,000 won (US$ 271) in Korea requires users to be issued with public key certificates, which are not available to foreign customers. Public key certificates are used to produce digital signatures for online transactions in Korea.
The existing system also requires users to install Active X, a software framework created by Microsoft in 1996. Korean online payment systems have been criticized for being complex and outdated since Koreans have had difficulty in dealing with installing Active X on certain operating systems, and foreigners purchasing products through Korean online shopping malls are not qualified to be issued of Korean public key certificates.
In March 2014, President Park Geun-hye demanded that Korean financial authorities lift existing regulations and establish an alternative system that would be more competitive with simpler online payment services abroad.
In May, the financial authorities lifted the requirement of public key certificates with credit or debit cards for online payments under 300,000 won. However, the newly introduced ‘One Click’ payment system will seemingly resolve all of the current issues, as it eliminates the use of Active X and public key certificates.
Shinhan card users will be able to use the new service on all Korean shopping sites from December 29, while Samsung and Hyundai card users will have to wait until December 30. KB Kookmin Card will start the service on December 30 but only on limited sites. Hana Card will launch the service on December 31.
BC Card and Lotte Card have already implemented a simpler online payment service. BC card offers a service that only requires a credit card password after logging in. Lotte Card users can make payments just by logging in.
By J. W. Choi (email@example.com)