No Card, No Problem: Korea to Enable QR Code Payments and Overseas ATM Withdrawals (Image supported by ChatGPT)
MILAN, May 8 (Korea Bizwire) — South Korea is preparing to roll out a new cross-border payment system that will allow travelers to make purchases abroad by simply scanning a QR code with a mobile app — no credit or debit card required. A companion feature will also enable cash withdrawals from overseas ATMs, aimed at locations that only accept cash.
The initiative, introduced by Korea Financial Telecommunications and Clearings Institute (KFTC) President Park Jong-seok during the Asian Development Bank (ADB) annual meeting in Milan on May 6, seeks to modernize low-value international transactions for both Korean outbound travelers and foreign visitors to Korea.
To make the system work, domestic financial firms and fintech platforms must integrate with payment infrastructure and ATM networks in partner countries. Park noted that this level of interconnectivity requires broad collaboration with central banks and payment agencies across the region.
“We are working to build a hub system that links cross-border micropayment services, in partnership with Asian payment organizations and central banks,” said Park.
The first pilot service is slated to launch in Indonesia by the end of 2025. From there, the system will expand through cooperation with member states of the Asian Payment Network (APN), which includes 12 countries: South Korea, Japan, China, Indonesia, Malaysia, Thailand, Vietnam, the Philippines, Singapore, Myanmar, Sri Lanka, and Nepal.
Park Jong-seok, President of the Korea Financial Telecommunications and Clearings Institute, speaks with reporters on the afternoon of May 6 (local time) in Milan, Italy, explaining the hub system aimed at linking cross-border micropayment services. (Image provided by KFTC)
Park added that the shared infrastructure would lower costs for financial institutions and fintech providers, enhancing service competitiveness while opening access to a broader range of licensed participants. “We expect this system to reduce entry barriers and boost competition by making the infrastructure openly available,” he said.
Separately, KFTC is developing a security-focused service called “Trust One,” which links physical credit or debit cards to smartphones only when needed for financial authentication.
Park emphasized its superior protection compared to other mobile-based authentication tools, stating, “Once launched, this service will help safeguard customers from electronic fraud and cyberattacks.”
As Korea pushes for more inclusive and frictionless financial innovation, the hub system marks a step toward reshaping how payments and identity verification work for millions of travelers in Asia.
Lina Jang (linajang@koreabizwire.com)
