Central Bank of Korea removes coins converting them into top-up for pre-paid cards

10 January 2017

Central Bank of Korea after many talks over the coinless transactions is finally starting the pilot of the service to provide consumers with the possibility to receive changes usually given in coins to their pre-paid cards. According to the statement made by the central bank the project objective is to eliminate the inconveniences related to using coins and taking them in the pocket thus cutting the costs resulting from their circulation and administration.

Statistical data in the survey of the 2,5 thousand consumers held by the central bank policy group shows that 63 percent of the respondents carry coins with them but half of the polled acknowledged that they did not use the coins even when they take them at the checkout as a change.

Originally the project will be piloted among the convenience stores across the nation processing large volumes of small cash payments. Instead of providing small coins checkouts will top-up the customers pre-paid cards for the change amount.

Apart from the coinless transactions the country has other financial innovation plans to allow customers to make payments with the palm vein authentication at the checkout, thus, paying for their purchases and services without providing their payment cards. Major card companies will participate in the project to be known as BioPay.

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