Mobile Banking is set to revolutionize the financial industry

Daum Kakao has finally launched its mobile money service, BankWalletKakao, a service allows users to spend up to $450 per day and transfer up to $90 per day. A number of other major players are likely to follow suit in the near future. It is suggested that these innovations, introduced by IT companies and not banks, could alter the shape of the financial industry in the future.

Samsung, who released their own Wallet last year plans to launch a mobile money transfer service, in collaboration with Yelopay. It also intends to link the mobile app cards of major credit card companies to Samsung Wallet. LG U+, Korea’s third mobile carrier, also plans to add money transfer to its suite of mobile payments service on Paynow.

Kakao is a first mover in mobile money transfer in Korea, and it is expected that future services will be even more advanced as the market matures. It is also expected that these tech companies will be able to solve more complex issues such as security, perhaps more effectively than the banks and credit card companies themselves. BankWalletKakao claims that user transaction data is encrypted along the entire payments process so even service operators cannot access the information.

It is reasonable to assume that once security concerns with mobile services are allayed that maximum spend amounts will increase. This will open other, larger opportunities for mobile banking, payments, and money transfer.

DaumKakao also claim that their service is very easy to use, which is vital for ensuring mass market uptake. A statement from the company said that the process is as easy as sending a message to a KakaoTalk friend—even without knowing the recipient’s bank account number.

A spokesperson for DaumKakao said: “BankWalletKakao is a next generation service that combines fund transfers, online payments and ATM cards, and users will be able to experience banking services in a whole new way. We hope BankWalletKakao’s security, convenience and wide availability can lay the foundation for greater innovations in the Korean mobile banking industry.”