Few may have anticipated the tremendous impacts of smartphones and mobile applications on conventional businesses from taxi operators to brick-and-mortar retailers when the market began adopting smartphones in earnest less than a decade ago.

Now few can dismiss the striking tech development under which previously dominant business sectors, including financial services, are going through disruptive changes caused mainly by the versatile telecommunications devices.

The mobile payment market, in particular, has recently received the limelight as companies from a variety of industry sectors have been throwing their hat into the burgeoning business ring.

Spearheading the emerging mobile payment industry are smartphone powerhouses Samsung Electronics and Apple, which are pushing their own mobile payment services, Samsung Pay and Apple Pay, respectively.

In his keynote speech at the unveiling event of Samsung’s two new phablets -- the Galaxy Note 5 and Galaxy S6 Edge Plus -- and Samsung Pay this month, the firm’s mobile business unit head Shin Jong-kyun called the launch of the mobile payment system “a brave step forward” to enhance citizens’ mobile experience.

Since its launch in Seoul last Thursday, Samsung Pay has garnered favorable reviews from users and retailers alike.

The company also has been making great efforts to foster the ecosystem for the payment services, partnering up with banks and credit card companies in Seoul, including Samsung Card, Shinhan Card and KB Kookmin Card.

The tech giant is also beefing up its ties with global card firms and banks including American Express, Chase and Bank of America.

Pinning high hopes on collaboration with Samsung, Barry McCarthy, an executive vice president of payment technology solutions developer First Data, said working with Samsung for the payment services would “enable more powerful connections between merchants, issuers and consumers.”

Samsung Pay is often said to have competitive advantages over Apple Pay since it is compatible with existing magnetic stripe card readers as well as near field communication connectivity and does not require retailers to install other payment terminals. Apple Pay, however, is only compatible with NFC-based payment terminals, which are fitted at very few shops and stores, especially in Korea and other Asian nations.

However, Apple, which released its mobile payment service in July, has already taken the lead at least in the U.S. market and increase its presence in other areas including the U.K. market, where the Cupertino-based tech firm has loyal customers, in the coming months.

“The advantage of (Samsung Pay’s) magnetic secure transmission technology will gradually erode, and Samsung needs to offer better solutions to compete with all other payment services using NFC terminals,” said Siyun Zeng, an analyst from research firm IHS.

In order for the mobile payment industry to grow further, the analyst said, the services need to provide differentiated values for users to change their purchasing habits.

Even though the mobile payment business is in its early days and has some hurdles to overcome, other market analysts paint rosy pictures about it.

The global mobile payment transactions are expected to surge in the coming years from $235 billion in 2013 to $721 billion in 2017, according to research firm Gartner.

The Korean banking industry is also about to see tectonic changes in the coming years as it will have the first Internet-only banks as early as next year.

From this month, different consortiums consisting of different businesses, such as mobile carriers, banks and online shopping businesses, announced that they would participate in the bidding process for approval to set up the Internet-only bank from the state financial authorities.

Applications for the bidding will be accepted next month, and around one or two consortiums are expected to receive the government permission.

Daum Kakao started the race by forming a consortium with Korea Investment Holdings and KB Kookmin Bank.

Among those aiming to jump into the banking sector are consortiums led respectively by mobile messenger operator Daum Kakao, telecom firm KT, online shopping business Interpark and start-up alliance 500V.

“The competition to win the approval to build the first Internet-only bank would get further heated up down the road,” a market analyst said.

By Kim Young-won (wone0102@heraldcorp.com)