Smart payment service

KT President Pyo Hyun-myung, right, poses with CEOs of companies that have joined the KT-led MoCa alliance in an event to mark the opening of their strategic partnership in downtown Seoul, Wednesday. From left are Caffe Bene CEO Kim Seon-kwon, UNICEF executive Ryu Jong-soo, BC Card Vice President Won Hyo-sung, Harex Infotec CEO Park Kyong-yang and KT CEO Pyo Hyun-myung. / Courtesy of KT

KT develops MoCa to beat Google in mobile payment

KT introduced a new service called MoCa Wednesday in a bid to beat Google in the smart mobile payment service market.

The new service comes as KT, Korea’s No. 2 mobile carrier after SK Telecom and leading broadband operator, has made huge investments to bolster its presence in non-telecom sectors.

The company is now trying to find its next cash generators amid saturation in the local telecommunications market.

MoCa is a mobile payment system that allows smartphone users to use various coupons, membership cards, store debit cards, credit cards and gift cards among others, as well as redeeming sales promotions via their mobile phone, said company spokeswoman Kim Yoon-jeong.

The application is already available from AppStore, Google Play Market and Olleh Market regardless of carrier.

“You don’t have to worry about the possibility of personal data leaks as MoCa users should approve transaction requests by card companies before actual payment,’’ said the spokeswoman.

“It’s mandatory to register a six-digit PIN to use MoCa. Therefore, chances are very low that the system will suffer any monetary damages even if handsets are lost,’’ she said. The system uses near field communication (NFC) to “make sure payments are fast and convenient.’’

In a news conference on the new system, KT President Pyo Hyun-myung was upbeat on eventually beating Google Wallet, though he declined to elaborate further.

“You can see mobile payment systems provided by Google Wallet and ISIS in the United States. But the number of registered outlets and credit card companies using those systems are limited. Google Wallet has some security problems. But I can say KT’s MoCa is far better than in terms of security as we have proven patents,’’ he said at the press conference. Pyo is considered as one of the top confidants of KT Chairman and CEO Lee Suk-chae.

The KT president also stressed plans to collaborate with interested parties overseas to lift the new business in the shortest time.

“KT has finished registering MoCa patents in various foreign countries, though I can’t mention their name for the time being,’’ the told reporters.

On a question of possible feuds over commission fees with card companies as the system favors with consumers, Pyo said; “We don’t want to push local outlets and card companies to join what we call a MoCa alliance. Without hurting the business models of each company, we will expand the market. This is not a zero-sum game. We have no interest to earn additional profit with the introduction of a payment system,’’ he stressed.

The alliance includes 44 local banks, department stores, book shop chains, non-profit organizations and online commerce sites such as Kookmin Bank, NH Bank, Standard Chartered Bank, Shinhan Card, BC Card, Kookmin Card, Shinsegae Department Store, E-Bay, Caffe Bene, Home plus, Aladdin, Kyobo Bookstore and UNICEF, KT said in a statement.

The security problems with mobile wallets are thorny and complex.

Any misstep, however, temporary, could erode the delicate trust between banks and others. Experts recently discovered the Google Wallet PIN, required for users to confirm purchases made with their phones, can be cracked via an exhaustive numerical search.

Being able to access the PIN would allow criminals to use a Google Wallet-enabled phone to make purchases, according to experts. <The Korea Times/Kim Yoo-chul>