Can PayTM work in Korean Market?
Domestic Competitors
In order to find out the answer to this question, first we should identify the competitors in South Korean market. Korea is considered one of the developed countries in the world and obviously the market in Korea is very strong and subsequently the competitors are also strong too. Of course before entering foreign market the first thing is finding competitors and learn and analyze the gained information. So there are two main competitors in Korean market Paytm can face with. They are KakaoPay and Samsung Pay. Now let’s analyze all these three services.
Paytm is offering following services: online use-cases like mobile recharges, utility bill payments, add money,
pay or send, payment bank, passbook, Paytm KYC, hotels, flights, digital gift cards,
wallet insurance, Paytm postpaid, travel, movies, and events bookings as well as in-store payments at grocery stores, fruits and vegetable shops, restaurants, parking, tolls, pharmacies and education institutions with the Paytm QR code.
KakaoPay is offering following services:
credit card payments, mobile payments, cash payments, wire transfers, password authentication,
identity verification, bills management, barcode scanning and other services.
And the last payment service provider is Samsung Pay is offering: credit & debit card transactions, gift & membership card transactions, in-store payments,
in-app purchases, online payments, visa checkout, fingerprint authentication, pin number authentication,
iris scan authentication, tokenization, nearby deals viewer, anti-theft protection and so on.
You can tell that Paytm is having apparent advantage in providing service, simply looking at the list of services which it is providing. But there are key factors in identifying the key features in this service sector.
Here is the main question: are they offering free service and to what extend the service that they are offering is safe and they are easy to use in other words convenient?
Now users of Paytm will be asked to do the following tasks to guarantee the security. First you should to reconfirm your Phone’s pin and password then pattern and fingerprint security.
Let’s take as an example only Samsung Pay from two competitors since it is having more advanced features in Korean market. In Samsung Pay everything is different. Samsung Pay has two layers of security on top of what your card already has.
First, the transmitted card number is not going to be your real card number. Because when you add a card, there will be a virtual card number which is linked to your real card which is created by your bank. This virtual card will be known only to your mobile phone and the real card number will not be saved excluding last 4 for reference where the virtual card has a link. And your phone will not have any information about or in other words it will know about it.
The second layer is that when you do transaction each time there will be one time token into the header information of the card. It can be used in NFC and MST transactions. The best thing about these tokens is that if you do not use after a particular period of time these tokens expire and they are to be replaced regularly. About them Samsung does not know because your bank is generating them and send directly to your phone. These tokens are stored in a system which change electronic information
or signals into a secret code, and only Samsung Pay has an access to it. The transaction fails when you use the card without valid token. From this point we can conclude that even if your virtual card number is skimmed it is useless since anyway it is not going to work.
PayTM Samsung Pay
Password then Fingerprint security
Pattern Created virtual number
Fingerprint security One time token
Here we can see that Samsung Pay is using Fingerprint security which is the highest security for its competitor as the simplest layer of security in its security mechanism. In Samsung Pay the security is provided the highest security among its competitors making security system highly reliable. But there is one disadvantage for users: Samsung Pay is working only in Samsung phones. It is problem as someone wants to use it with other phone for example iPhone. Of course it is one of the strategies of Samsung to promote and increase the sale of Samsung phone in the market, especially in its own market.
