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A customer uses Samsung Pay to make a payment at a CU convenience store. (Photo courtesy of Yonhap News) |
[Alpha Biz= Paul Lee] Seoul, August 27, 2025 — Consumer frustration is mounting in South Korea as Samsung Pay experiences repeated service disruptions, prompting renewed calls for greater adoption of Apple Pay in the domestic payments market.
According to financial industry sources, Samsung Pay suffered a delay in processing Shinhan Card payments for about 50 minutes on August 24. Just two days earlier, on August 22, Hyundai Card transactions also faced technical issues due to network instability between Hyundai Card and the Mokdong data center. Including these two incidents, Samsung Pay has faced four disruptions so far this year.
The recurring glitches are fueling demand among consumers for wider availability of Apple Pay. However, since Hyundai Card introduced Apple Pay in March 2023, no new issuers have joined. Speculation last year suggested that Shinhan Card and KB Kookmin Card might adopt the service, but both companies have continued to deny confirmation.
Analysts warn that Apple Pay’s limited penetration risks leaving Korea’s payments market increasingly isolated. Despite early expectations of a “catfish effect” — spurring competition — Apple Pay remains restricted largely to major retail partners. While value-added network (VAN) operators have been working to expand NFC terminal deployment, progress has been slower than that of existing magnetic secure transmission (MST) terminals. Moreover, unlike Samsung Pay, which supports cards from all issuers, Apple Pay remains exclusive to Hyundai Card.
Profitability concerns also weigh heavily on issuers. Costs tied to Apple’s transaction fees and additional marketing expenses make adoption less appealing, particularly for large players such as Shinhan Card, which already has over 14 million members and may see limited gains in new customer acquisition.
Industry insiders are also watching closely for potential changes to Samsung’s fee structure. Since its launch in 2015, Samsung has not charged issuers separate fees, a strategy aimed at boosting Galaxy smartphone sales. But with Apple Pay gradually expanding, analysts suggest Samsung may seek to monetize Samsung Pay more directly to offset potential losses in market share.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
