Starting Wednesday, banking customers in South Korea can now deposit and withdraw money at automated teller machines (ATMs) using QR codes in their mobile cash cards and mobile banking applications, according to the financial digitization promotion body led by the Bank of Korea (BOK), the Korea Financial Telecommunications and Clearing Institute (KFTC), and banks on Tuesday.

The existing mobile cash card service was limited to Android phones at ATMs with Near Field Communication (NFC) recognition. But this new QR code service allows all banking customers to use ATM deposit and withdrawal services regardless of their smartphone operating system, as explained by the central bank. The new services are available at ATMs of 17 banks, including Shinhan Bank, KB Kookmin Bank, Hana Bank, Woori Bank, and NH Nonghyup Bank.

Customers who want to use this service will need to download the mobile cash card app in advance and link it to their bank account. The mobile cash card service allows users to have a virtual cash card on their smartphones without the need to carry a physical card.

BOK plans to expand the service to mobile banking apps, payment platform apps, microfinancing institutions, and ATM operators. “The financial digitization promotion body plans to continue efforts to guarantee diverse payment options for financial consumers, promote balanced development in the payment market, and expand financial inclusion,” a BOK official said.

The KFTC developed the required technologies to introduce this new service over a period of around nine months. After applying the technologies to individual participating bank ATMs, the QR code-based deposit and withdrawal functions were installed in around 49,000 ATMs nationwide as of the end of October 2023.

By Han Sang-heon and Chang Iou-chung

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]