A new QR payment service will be released to make it easier for customers to pay, affiliated stores to lower commissions, and the card industry to avoid duplicate investments.

With this QR payment, 28 million BC Card credit / check customers can conveniently make payments on their smartphones as well as enjoy the card benefits. Moreover, merchants will enjoy benefits such as additional reduction of merchant fees, making this seem to a key payment method in the digital financial era.

BC Card (Mun-whan Lee, President and CEO, www.bccard.com) launched 'QR Scan Payment' service, which allows customers to scan QR codes, prepared by merchants, directly on their smartphones to make payments.

The advantage of this method is that QR payments can be used in a wide range of areas, proven by places where they have become common such as China, and BC Card is planning to start the service on July 7 and recruit merchants.

Since the 'QR Scan Payment' simplifies the settlement process between merchants and card companies, the merchant fees will be reduced to maximum of 0.14% for transactions made with the service.

As a method where customers can scan the printed QR code attached by merchants with their smartphones, it can be used in places with poor payment environment such as food trucks, which can greatly benefit small and medium businesses.

BC Card predicts that as people with credit card be able to make QR payments at merchants, the financial burden of merchants will be reduced since they do not have to install payment terminals which cost more.

As for customers, they will be able to pay more conveniently due to the omission of the process of having to wait for approval in front of a card payment terminal.

For example, after dining at a restaurant with a QR code attached to the table, the QR code can be scanned from the seat and the payment can be completed.

The merchant-based QR Scan payment provides integrated payment service within the scope of the QR Code payment standard proposed by the Financial Services Commission. If Lotte Card, Shinhan Card, and other domestic card companies release services at the same time in compliance of the relevant standards, then they will all be compatible with one another.¹

As the payment method becomes compatible, it is expected to not only reduce the social expenses such as unnecessary redundant investment of domestic companies but will establish itself as an effective payment method.

Notably, BC Card’s QR specification follows global standard, so that existing BC card customers can use the cards that they issued at home to make QR payment in overseas. In addition, foreigners using foreign cards such as China’s UnionPay can use 'QR scan payment' in Korea.

QR Pay Kit, which includes QR payment code (sticker type, stand type) and invitation card, is also provided free of charge for new merchants who would like to use the 'QR Scan Payment' such as food trucks. Application for QR payment merchant registration and 'universal QR pay kit' receipt request can be made through the apps of BC, Lotte, Shinhan and other card companies (methods and time periods differ by each company; refer to the common announcements).

There will also be an event offering discounts of up to 500 won per transaction per day and a maximum of 1,500 won to all customers who pay by 'BC Card QR' by the end of February, and various events are planned to be added to activate the QR payment. (If you pay more than 500 won per transaction, providing up to maximum of three transactions per day)

Kang-hyeok Lee, Vice-president of BC Card Business Infrastructure Division, said, "We are preparing various ways to co-exist with our merchants, such as setting up an environment to further reduce merchant fees by introducing QR Scan payment. We will do our best for our customers to make more convenient payments as well as creating mutual benefits with our merchants through the provision of various payment methods such as QR."

¹QR Scan Payment Application (card company): paybooc (BC card), Lotte Card Life (Lotte Card), Shinhan payFAN (Shinhan Card)