There are one after another reports that Apple Pay, Apple’s simple mobile payment service, is forthcoming in Korea. While it is an “old problem” that has surfaced from time to time after Apple Pay was launched in 2014, this time the specific situation has been captured and it is speculated that the introduction will become a reality within the year.
Really this time? ‘to the point’
According to the industry on the 15th, an image file of the Hyundai Card terms and conditions, stating that the Apple Pay service will be rolled out later this year, was leaked and is spreading to online communities.
The terms and conditions contained the contents of the “Apple Pay payment service provided by Hyundai Card Co., Ltd. to subscribers”. It was also explained as “a service that carries out payment approval procedures at offline and online merchants through a dedicated application (app) installed on their mobile device”.
The reason the public attention has been focused is because the specific terms and conditions have gone out until the effective date. According to leaked information, Apple Pay will take effect from next month, “November 30”. With this sentence, expectations are growing that Apple Pay will now be officially launched in Korea.
The authenticity of the terms and conditions is currently unknown. Both Apple and Hyundai Card, the service providers, are not confirming. As a result of the coverage, Apple did not take a particular stance and Hyundai Card officials only repeated the answer: “There is nothing we can confirm.”
The unusual influence of Apple’s “secretism”?
Apple’s “secretism” is ironic. Security is more important than any other company in the information technology (IT) industry. This can be seen by looking at recent examples. Rumors about the Apple Store branch Jamsil (the 4th branch), which opened on the 24th of last month, have already spread since August last year. At that time, rumors emerged along with the Hollister Lotte World Mall store recall and there was an observation that a new store would be opened in the Jamsil Lotte World Mall, which was competing with the Apple Store Yeouido branch (2nd shop). In February of this year, a job posting for local staff in “East Seoul” was posted on Apple’s website in February of this year, and then, in August, the internal materials engraved with the Apple logo are been captured in Jamsil’s Lotte World Mall.
However, on the 14th of last month, Apple kept quiet about the reporter’s question about whether or not the store would open until the day before the official announcement on its website.
Apple is known for adhering to an unusual secrecy strategy in line with the philosophy of the late Steve Jobs. According to the book “Inside Apple,” a book that interviewed former Apple employees, Apple sometimes hires new developers to develop “counterfeit products”. Until trust is built, a “real product” is something you can’t touch.
It is known to require vicious levels of non-disclosure agreements (NDAs) from suppliers and employees. That’s why Apple employees are obligated to make a commitment not to divulge their work to friends, colleagues, or even their spouses. Failure to do so will result in a huge penalty. In the case of “GT Advanced Technologies”, which was formerly Apple’s display partner, a clause requiring the payment of $ 50 million (approximately 55.9 billion won) for each breach of a confidentiality agreement has become a hot topic.
After the iPhone 13 details and meeting details leaked last year, CEO Tim Cook said in an email to the whole company: “We are doing everything possible to identify those who have leaked. . I’m not from Apple. “
In the past, if leaks of Apple products were discovered, they were fired or even arrested. The industry speculates that the leak of secrets is the most likely cause behind the Apple-Hyundai Motor Group’s “Apple Car collaboration rumors” that emerged early last year. At the time, CNBC reported that “Apple companies shouldn’t tell anyone. Hyundai must have learned a lesson from this incident.”
Even Apple employees are unaware of how the organization of the company is structured. An employee of an American IT company said, “Apple’s departments are divided as fragments as needed, and activities are also separated like pieces of a puzzle. The necessary staff are working on the necessary content in the form of ‘dots’.” The final aspect can only be seen by top management. Apple’s secrecy also had a marketing effect that increased consumers’ desire for information about new Apple products and a greater interest in Apple products.
“The situation is clear” … Expectations for internal landing
This means that it is not easy to confirm whether the rumors about the introduction of Apple Pay are true or not. So, is Apple Pay really coming to Korea this time? Apple Pay is currently available in 73 countries. In Asia it is already used in Japan, Taiwan, Hong Kong, Macau, Singapore, Malaysia and even China, but it is not only available in Korea.
One reason seems to be the lack of widespread use of Near Field Communication (NFC) terminals in Korea. In Korea, most restaurants and shops use IC terminals to pay by inserting a card directly into the terminal. NFC terminals, which allow you to pay for goods simply by touching your smartphone to the card terminal, can mainly be used at large retail outlets such as Starbucks, E-Mart and GS25. Most generic stores use cheaper IC terminals instead of expensive card terminals. An industry official explained: “There are 100,000 domestic merchants with NFC terminals and the penetration rate is less than 3%.”
Domestic card companies, which have felt the burden of infrastructure construction costs due to such low NFC terminal penetration and high fees from Apple, have been unable to successfully introduce Apple Pay. Rumors about the introduction of Apple Pay flared up again in August when rumors spread of an exclusive deal with Hyundai Card. Quite specific advances are also acquired. There are also rumors that six large van (VAN) companies and card terminal manufacturers have signed a contract and started production and development of the NFC terminal system for Apple Pay. However, officials from large domestic VAN companies have also given the same reaction as Apple and Hyundai Card. Neither the terminal under development nor the introduction of Apple Pay is said to be “unconfirmed”.
Apple, Hyundai Card and the Van Industry (VAN) firmly deny this, but users are raising expectations for the Apple Pay launch as specific circumstances have emerged, such as adding a “Start Apple Pay” menu to the iPhone wallet. service. After the iOS 16 update for the iPhone 12 operating system last month, the “Start Apple Pay” menu was added to the wallet service for the first time. Additionally, a new phrase was found in the Korean Media Service Terms and Conditions on Apple’s website: “You can use Apple Pay to charge a payment method to your Apple Wallet of your choice.” With these clues emerging, rumors about the introduction of Apple Pay are gaining weight.
Under the leaked Hyundai Card terms and conditions, if the Apple Pay service is indeed introduced on the 30th of next month, Apple’s official timing will likely be around a week after the service starts. Apple is famous for its “guerrilla marketing,” in which product information is completely hidden and the imminent disclosure of product information while adhering to secrecy. Meanwhile, Apple has officially unveiled the new release date for the store or product in Korea with a minimum of 10 days or up to two weeks in advance.
If real Apple Pay is introduced as specified in the terms and conditions, it is very likely that Apple’s official date will be later than the middle of next month. Most users familiar with Apple’s properties are replying, “Let’s wait until next month for now.” It means we will have to wait at least a month to officially confirm if Apple Pay has been introduced.
Journalist Jo Ara of Hankyung.com [email protected]
