South Korea’s financial regulators the Financial Services Commission (FSC) and the Financial Supervisory Service have approved local credit card firms to offer mobile-only credit cards to clients later this month.
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The move is part of as part of FSC’s efforts to enhance convenience and speed in electronic transactions.
The mobile cards will be offered within one or two days after application for customer’s smartphones as the public authentication program provided by financial institutions can be downloaded onto mobile devices.
FSC said that it has also tightened authentication procedures for issuing mobile-only credit cards to prevent fraudulent card use.
The new authentication procedures will include double ID check to minimize identity theft risks, sending text messages regarding money settlement details to users to prevent credit card fraud as well as issuing cards at least one day after the customer applies for them.
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By GlobalDataThe regulator added that the mobile credit card will not provide card loan services, according to Yonhap.
As part of the move, credit card companies will work with the Credit Finance Association to issue mobile cards and to build a system for it as well as set up detailed guidelines for the prevention of credit card fraud and misuse, reported Whowired Korea.
