© Archyde.com. Apple Pay’s domestic expansion rumors ‘Solsol’… Who is the biggest beneficiary?
Apple is introducing Apple Pay. (Photo = Archyde.com = Yonhap News) As expectations for Apple Pay’s domestic service are rising, attention is focused on the beneficiaries of Apple Pay. Analysts from securities analysts say that when building Apple Pay infrastructure, it is essential to replace the device with a device equipped with a near-field communication (NFC) payment function, so companies should pay attention.
According to related industry sources on the 8th, Apple recently added contents related to ‘Apple Pay’ to the domestic terms of use. As a result, the prospect that Apple Pay will be introduced in Korea as early as this year is weighing on the prospects.
Apple Pay was launched in the United States in 2014, but in Korea, its introduction has been delayed due to problems such as high commission burden and NFC terminal dissemination problems.
Apple is extremely reluctant to say whether or not Apple Pay will be introduced in Korea, but this update of terms and conditions is interpreted as a sign that Apple Pay service is imminent in Korea.
In particular, the report of Hyundai Card’s exclusive Apple Pay contract is quite specific. According to the report, Hyundai Card signed a one-year exclusive contract with Apple to introduce Apple Pay at the end of the year, and during this period, with the goal of selling 125,000 cards, annual fee cashback, Apple’s latest device lottery payment and purchase subsidy support, Apple Care insurance We are preparing promotions such as payment.
Hyundai Card plans to start selling related cards through advance reservations from November, and to introduce Apple Pay, it has signed contracts with six van (VAN) companies and card terminal manufacturers to begin manufacturing and system development of NFC terminals. A photo detailing the Apple Pay service. / Photo = The reason the online community market is paying attention to Apple Pay is because of its performance in the global market. As of September 2020, Apple Pay exceeded 500 million users. As of 2021, in terms of global payment volume, it surpassed Alipay and Mastercard to rank second. As Apple Pay enters the domestic market, expectations that the market structure may change are also increasing.
Kim Jae-woo, a researcher at Samsung Securities, said, “In the early days, the mobile phone makers represented by Samsung Pay took the lead in the simple payment service market, but they are rapidly shifting to electronic finance companies represented by Kakao Pay and Naver Pay after the COVID-19 outbreak.” As reported in the press, if Apple Pay enters the domestic market through collaboration with Hyundai Card, it can seek to expand its market share in an unconventional way, which is why the market is paying attention to the fact that it can bring about a change in the market structure so far.” explained.
Although it has not yet been decided whether Apple Pay will enter the country, various stocks are being mentioned as beneficiaries of Apple Pay. Related equipment companies and payment companies are representative. Among them, a large ban company is mentioned as a representative example that is attracting market attention as a beneficiary within the payment industry.
In fact, listed companies such as KG Inisys, Nice Information and Communication, and Korea Information and Communication have shown differentiated stock returns despite recent stock market corrections.
In the five trading days from the 7th to the 15th of last month, when the Apple Pay-related report was published, the stock prices of KG Inesis, Nice Information and Communication, and Korea Information and Communication soared 7.33%, 7.00%, and 12.72%, respectively. Compared to the 1.72% rise of the KOSDAQ during the same period, the stock price rose sharply.
The primary key for Apple Pay to settle in the domestic market is expected to be the expansion of payment infrastructure. This is because the replacement demand for devices equipped with NFC payment functions may increase, which may lead to sales of related companies.
This is why interest in not only upgrading the NFC function of POS devices, but also adding the NFC function to kiosks that are rapidly spreading recently, and the bansa in charge of dissemination and management of these devices is growing.
But the key is speed. If infrastructure construction is slower than the market’s expectations, the performance of related companies may show a slower-than-expected improvement.
In the future, the pace of improvement in Apple Pay-related fundamentals in these companies’ investments is expected to primarily depend on what strategies the adopters of Apple Pay can use to increase the use of Apple Pay in the short term, thereby increasing the voluntary device replacement demand of franchisees.
Some observers point out that it is realistically difficult to select Apple Pay-related beneficiaries at this point and derive the potential for fundamental improvement. This is because it is not easy to infer related strategies, domestic investment scale, and related companies, as it has not been confirmed whether Apple Pay will enter the domestic market.
If Apple Pay is introduced, the industry is expected to change faster. Due to the recent increase in interest burden due to high inflation and rising interest rates, the performance of financial platform companies, including Fintech and Big Tech, is somewhat stagnant.
An industry insider said, “If Apple Pay is introduced in Korea under this circumstance, it will inevitably intensify competition and make additional efforts to survive.” It is necessary to pay more attention to such changes in the industrial structure as it can continue,” he said.
Reporter Eunji Cha, Hankyung.com [email protected]
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