LG CNS, a South Korean system integrator, said Wednesday that it has developed a mobile payment system that enables users to easily settle their bills without downloading complex software and going through an identification certification process.
The company’s “MPay,” which will be integrated with Korea’s most-used mobile messenger Kakao Talk, allows users to just type in their passwords for financial transactions of over 300,000 won ($295).
An LG CNS employee introduces the MPay mobile payment solution embedded in smartphones. (LG CNS)
The process is simple, but security is ensured, the company said, as its advanced One Time Password algorithm will use the encrypted information to match the users’ identities only once after they log in to make payments.
MPay, which has received the highest grade in terms of security by the Financial Supervisory Service, also does not allow identification matching with any information stored either inside users’ smartphones or at the database center.
It will delete personal information after people type in the wrong passwords five times as part of security protection, the company said.
Customers’ personal information such as credit card numbers and date of birth will be stored separately on their smartphones and LG CNS’ database center.
LG CNS said it hoped to provide the mobile payment system as an alternative to foreign solutions by PayPal or Alipay.
The company and Kakao are in talks with local credit card companies to integrate MPay into their financial transaction systems.
Both companies said they aimed to launch the mobile payment solution via Kakao Talk by the end of the third quarter.
By Park Hyong-ki (hkp@heraldcorp.com)
