South Korea: KakaoBank and Toss Bank Prepare Apple Pay, Ending Hyundai Card’s Exclusivity
iPhone users in South Korea may soon be able to use Apple Pay without holding a Hyundai Card. Two of the country’s biggest internet-only banks, KakaoBank and Toss Bank, are getting ready to add Apple Pay for their debit cards, Korean media reported on 8 and 9 November. That would end the exclusive position Hyundai Card has held since Apple Pay arrived in Korea in 2023.
Key facts
- KakaoBank and Toss Bank are preparing to let customers add their check (debit) cards to Apple Wallet and pay with an iPhone or Apple Watch, with no separate app or plastic card needed.
- Until now, Hyundai Card has been the only Korean card issuer offering Apple Pay, about three years after it launched the service in 2023.
- The Financial Supervisory Service (FSS), Korea’s financial watchdog, cleared Toss Bank’s Apple Pay terms early this year; KakaoBank’s review is reported to be nearly finished.
- Reports say KakaoBank could go live as early as this month, while Toss Bank is aiming for the end of 2026.
- Card issuers Shinhan Card, KB Kookmin Card and BC Card are also reported to be reviewing Apple Pay.
Why Korea has been a one-card market
South Korea is one of the world’s most cashless economies, but its phone payments have long been dominated by home-grown players such as Samsung Pay, Naver Pay, Kakao Pay and Toss. Apple Pay only arrived in 2023, and only through Hyundai Card. Other issuers held back for three main reasons.
First, Apple charges card issuers a fee on each Apple Pay transaction, while Samsung does not charge Korean issuers for Samsung Pay. Second, Apple Pay works only on contactless NFC (near-field communication) terminals, and many Korean shops still rely on older card readers, so joining means helping to pay for new hardware. Third, issuers fear that if Apple Pay spreads, Samsung could start charging fees too, raising costs across the industry.
The gap has drawn political attention. At a parliamentary audit in October, a lawmaker pointed out that more than 200 financial firms support Apple Pay in Japan and over 100 in China, against just one in Korea. Regulators said they were studying the fee issue but have limited power to step into business talks.
Why it matters
For KakaoBank and Toss Bank, Apple Pay is a customer-acquisition tool. Both banks are popular with younger, mobile-first users, the same group that tends to favour iPhones. Letting those users tap to pay with a debit card they already hold removes a reason to sign up for a Hyundai credit card and gives the digital banks a bigger share of everyday card spending.
For consumers, the move means more choice. iPhone owners who did not want a Hyundai Card have had no way to use Apple Pay in shops. If the two banks launch, a debit card from either one will be enough, and pressure will grow on the larger card companies to follow.
The bigger question is cost. Analysts quoted in Korean media warn that the fees issuers pay Apple, on top of what they pay to card networks such as Visa and Mastercard, could eventually be passed on to users through thinner rewards. Korean card companies already face shrinking margins after repeated cuts to the fees they can charge small merchants. If Samsung responds by charging for Samsung Pay, that pressure would rise further.
For the region, Korea is one of the last large Asian markets where Apple Pay has stayed so narrow. Wider support would bring it closer to Japan, where Apple Pay is widely accepted alongside local QR and e-money services.
What to watch
- Whether KakaoBank switches on Apple Pay in November as reported, and whether Toss Bank meets its year-end target.
- Whether Shinhan Card, KB Kookmin Card or BC Card follow, and whether the FSS finishes their reviews this year as planned.
- Any move by Samsung to start charging Korean card issuers for Samsung Pay.
Related on FinDeskAsia: South Korea: Naver Pay Wins Country’s First Global Biometric Data Certificate for Face Pay · South Korea to Scrap Bank ‘Network Separation’ Rule
Sources: KED Global (Nov 2026), The Korea Economic Daily / Hankyung (Nov 2026), Financial Post Korea (Nov 2026), The Korea Times (Oct 2026)
