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Korean companies seek alternatives to MasterCard, Visa

June 26, 2012

Many credit card companies in South Korea are hoping to sign business deals with firms other than MasterCard and Visa, both of which have a major foothold on the sector.

Many credit card companies in South Korea are hoping to sign business deals with firms other than MasterCard and Visa, both of which have a major foothold on the sector.

The Asia News Network reports that the two leading firms have a 92 percent market share and are able to impose fees with little competition from others in the industry. According to the Bank of Korea, consumers shelled out a total of $8.62 billion to Visa and MasterCard for the merchant services related activities. 

Those within the country say that many were looking for other firms that charged lower fees than the two industry giants.

“With credit card spending on a constant rise, local card companies are finding the fees to Visa and MasterCard increasingly burdensome,” an official at the Credit Finance Association told the source.

In one recent deal, South Korea-based Hana SK Card stated that it was partnering with IBM to enhance security for customers. The plan is to make operations more secure by using a database encryption, the credit card company stated in a release.

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