Daum Kakao Rolls out Mobile Payment Service in Korea

November 13, 2014         By: Melanie Macinas

South Korea’s Daum Kakao has launched its second mobile payment service, the BankWalletKakao—in an attempt of the Internet giant to go beyond its core businesses.

Established in October by the merger of Kakao, maker of popular messaging app KakaoTalk, and Daum, one of the biggest Internet portals and search engines in South Korea, BankWalletKakao allows users to connect with their ATM cards, make online payments and facilitate bank transfers.

Daum Kakao has made this possible through a partnership with 16 Korean banks and the non-profit Korea Financial Telecommunications and Clearings Institute (KFTC), which manages interbank payment systems.

To use the service, users just have to link their account to an online bank account or Bank Money account—a chargeable virtual account by the KFTC and 13 local banks.

Currently available on iOS and Android in Korea, Kakao can also be used at various offline retailers in Korea including 7-Eleven, and department stores Shinsegae and AK.

Daum Kakao says that BankWalletKakao is easier to use than similar products such as PayPal, Alipay and Apple Pay, thus potentially attracting more users.

It can be recalled that Daum Kakao earlier unveiled KakaoPay, allowing KakaoTalk users to pay for eCommerce products and services through the messaging app. Since its launch in September, KakaoPay has had 1.2 million user sign-ups.