Visa, SK Telecom to launch mobile payments in Korea

Visa International Service Association and SK Telecom Inc. will introduce a mobile payment system using universal Subscriber Identification Module (USIM) cards for 3G (third-generation) mobile telephony networks, the companies said Thursday.

The service will launch in South Korea in April, initially for 30,000 SK Telecom 3G subscribers. Those wishing to use the system can install Visa's Wave contactless payment application directly to their USIM card. Once installed, users can move the card to other devices and still run the application.

The system uses a proximity reader to securely collect the customer's payment information the USIM, the companies said. The mobile device must pass within four centimeters of the reader, Visa said on its Asia Web site.

USIM cards differ from the SIM cards used in 2G (second-generation) mobile telephony in their ability to store and run a greater number of applications. The USIM cards used by SK Telecom for the mobile payment program are not proprietary, a spokeswoman for the company said by telephone.

The two companies will also look for opportunities to expand the payment system in other markets, they said.

The IDG News Service is a Network World affiliate.