The launch of a P2P mobile money service by popular messaging app Kakao fell between financial regulators and, as a result, is unlikely to launch until September, said Business Korea.
Speaking during last month’s Mobile Asia Expo, co-CEO Sirgoo Lee revealed the Korean firm has been working with the country’s banks for a year, and hoped to launch its service in July, as reported by Mobile World Live.
The money service falls under the remit of Korea’s Financial Supervisory Service (FSS) but reaching that decision took some time, according to an official from one of the authorities involved.
“It took a long time to decide on who will be in charge of the case, since it is the first time to launch a mobile money transfer and payment service in partnership with banks, the Korea Financial Telecommunications & Clearings Institute (KFTC), and a mobile messenger service provider,” noted the report.
In the end, the FSS got the nod but will take one to two months to scrutinise Kakao’s money service, making a September launch most likely.
However, some in the money industry think the FSS might take longer to make a decision because it’s the first time it has had to approve a money transfer service via a mobile messaging app.
The possibility that such a popular app as Kakao could be a target for online banking fraudsters adds to the pressure on the regulator, and could further delay it.