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Press Release
In affiliation with LG Card, SK Telecom introduced a WCDMA USIM card installed in mobile phones, which functions as a credit card.
The credit card-function offers USIM card enhanced security, user convenience and economic feasibility.
The card offers users a maximum of KRW15,000 through discount benefits on mobile phone service rates each month in accordance with the users’ card use amounts.
Salesman “K” who is frequently on outside duty carries a very thick wallet that is full of personal financial cards such as a transportation pass, credit cards, cash and membership cards. If he loses the wallet, he has to apply for re-issuance of those cards by their issuing entities, and physically visit the entities to gain them, or receive them through a delivery service. Busy people like Mr. K know that it will be very convenient if a mobile phone offers various financial transaction services, without the use of personal financial cards. It means he doesn’t have to carry such a thick wallet whenever he goes out. Now, his wish is turned into reality. SK Telecom’s WCDMA mobile phone subscribers are able to conduct transportation pass, credit card, and membership card functions wirelessly via a mobile phone, as well as make a broad range of financial transactions with the mobile phone.
The USIM card installed in third generation WCDMA mobile phones serves as a key to the management and authentication of subscriber actions. It will be widely used in a variety of areas in people’s everyday lives as the mobile phones’ storage capacity increases, and convergence technologies are combined.
To use this financial transaction service via a mobile phone, existing CDMA subscribers have to use a financial service-enabled handset, and get a chip that will authenticate each financial transaction individually. In the case of WCDMA subscribers, they just download traffic pass, credit card, and membership card functions wirelessly onto a single USIM card.
In order to use the USIM-based credit card service, subscribers will have to apply for the issuance of a credit card from each credit card firm. The firm will transmit a short text message to the subscriber’s mobile phone after evaluating the subscriber’s credit status in accordance with existing credit card issuance procedures. Upon receipt of the message, they accept the message and download Virtual Machine (VM). Afterwards, subscribers should activate the VM, and input their identification numbers and set passwords. Then, a credit card function can be downloaded on the USIM wirelessly.
SK Telecom’s USIM-based credit card service is affiliated with an LG Style T-card. The card offers users a maximum of KRW15,000 discount benefit on mobile phone service rates each month in accordance with the user’s card use amounts. This service is available through LG SH-110 and LG SH-130 handsets, and will be available through Samsung’s SCH-W240 and SCH-W290 handsets which will be released in the near future. SK Telecom plans to increase the line of USIM-based credit card service-enabled handsets.
This credit card can be used in every member store nationwide that has contactless credit card reading devices. These include such stores as E-Mart, Family Mart, Shinsegye Department Store, Crown Bakery, Kyobo Book Centre and TGIF. Currently a total of 80,000 reading devices are installed in member stores, and more than 150,000 reading devices will be installed in member stores by the end of this year. In addition to domestic member stores, SK Telecom will be able to let subscribers make payments on a credit card through a WCDMA handset while overseas at Visa card member stores which have contactless reading devices. To this end, the USIM-based LG credit card is affiliated with Visa International.