APPLE PAY LAUNCHES IN S. KOREA

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To the anticipation of many iPhone users, domestic iPhone users can now also use Apple Pay. Significant changes are expected in the domestic mobile payment market, which has thus far been dominated by Samsung Pay.

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Apple's mobile payment service, Apple Pay. Apple Pay launched in 2014 and was only available overseas, but it has landed in South Korea starting Tuesday. Transactions can be made using Apple smartphones and tablet PCs, but the service is currently only available when linked with a Hyundai credit card. Consumers expect Apple Pay will boost market competition and lead to more consumer friendly options in the smart payment market.

[Soundbite] No Ga-hee(Seoul resident) : "I used to get an earful from others about using Apple. Now I’m so happy the service is launched."

However, many pundits forecast the impact to be limited for the time being. A special terminal is required to use Apple Pay but only about 10% of businesses nationwide have installed the device. Also, Apple Pay can't be used to pay for public transport, such as subway and bus fares.

[Soundbite] Ryu Chang-won(Hana Institute of Finance) : "The distribution rate is very low. Large scale installations are expensive so progress is slow mainly led by big establishments."

Credit card companies must also pay a 0.15% commission to Apple for every transaction, which is considered a disadvantage as rival Samsung Pay doesn't require such a fee.