Contactless Payment Markets in Japan and South Korea

Secure Payment Chips, Cards, Mobile Devices, and Readers



Vendors and consumers in Japan and South Korea lead the world in adopting contactless payment solutions. Both countries have implemented nationwide services on a commercial scale. In Japan, FeliCa has created innovative businesses such as Suica and Edy through which credit card and financial service, transportation and mobile service companies have aggressively adopted FeliCa-based mobile phone and smartcard payment solutions. With the contactless transit card called T-money, South Korean card issuers designed a contactless payment system that includes USIM mobile payment solutions. Visa Wave and MasterCard PayPass began implementing contactless payment services in the South Korean retail sector early in 2006.

This study assesses the Japanese and South Korean contactless payment market landscapes. It examines business models, tracks merchant uptakes, and gauges card issuers’ and consumers’ expectations in both markets. The report includes forecasts of shipments and revenues for chip, reader, and contactless payment solution-enabled devices to 2012.


What Does This Report Answer?
  • What market trends drive FeliCa adoption across Japanese contactless payment markets?
  • What do FeliCa-based services (including Suica and Edy) do, and how do they impact Japanese consumers?
  • What does Osaifu-Keitai do and how does it impact Japanese consumers?
  • What do contactless payment-based credit card services including iD, QuicPay, and SmartPlus do, and how do they impact existing credit card services?
  • What are the business drivers for adopting Suica and Edy services?
  • What merchants and companies are adopting FeliCa based services?
  • What examples of FeliCa based services exist, and how successful have they been?
  • What does USIM (Universal Subscriber Identity Module) do, and what impact does it have on Korean mobile payment solution services?
  • Why are Korean mobile operators and vendors aggressively pursuing network-linked RFID (Mobile RFID) and what are their business models?
  • How will Visa Wave and PayPass impact Korean contactless payment services?
  • How do Japanese and South Korean consumers feel about contactless payment services, and what are the advantages for merchants and operators?
  • What business models will be found in these markets?
  • What do Japanese and South Korean mobile operators, card issuers, consumers and merchants expect from contactless payment?
  • By 2012, how large will shipments, ASP and revenue be for readers, chips and enabled devices?
  • What will chip and reader shipments and revenue be by 2012?
Who Needs This Report?
  • Integrated circuit manufacturers
  • Contactless and smart card manufacturers
  • Reader and point of sale (POS) terminal manufacturers
  • Credit card associations, issuing banks, acquiring banks
  • Mobile operators
  • Cash-payment focused merchants
  • Contactless hardware, software and integration vendors
  • Micropayment companies
  • Investment banks and venture capital firms
  • Policy regulators


Scope of Study

Sources and Methodology

Notes

Section 1
Japanese Landscape
1.1 FeliCa’s Impact on the Japanese Market
1.2 Mobile FeliCa
1.3 FeliCa Card Physical Structure
1.4 Security
1.5 FeliCa Applications
1.5.1 Edy
1.5.2 ToRuCa
1.5.3 Suica
1.5.4 Other Transit Card Service
1.5.5 MoCoCa for Security Entrance
1.5.6 Resident Registration Card
1.6 Mobile Devices Driven Credit Card Service
1.6.1 NTT DoCoMo: iD and DCMX
1.6.2 UFJ NICOS: Smart Plus
1.6.3 JCB: QuicPay
1.6.4 Orico: PayPass by MasterCard
1.7 Mobile Device Types
1.8 Business Models

Section 2
South Korean Landscape
2.1 Mobile Finance Service in South Korea
2.2 USIM War
2.2.1 SK Telecom
2.2.2 KTF
2.3 Visa Wave and PayPass in South Korea
2.4 Mobile RFID
2.4.1 Market Drivers for Mobile RFID?
2.4.2 m-RFID Standard
2.4.3 Business Models for m-RFID

Section 3
Market Outlook and Discussion
3.1 Japanese Contactless Market Outlook
3.2 South Korean Contactless Market Outlook
3.3 Issuer Expectation
3.4 Merchant Uptake
3.5 User Expectations
3.6 Mobile Operator Expectations

Section 4
Company Profiles
4.1 BitWallet
4.2 Dai Nippon Printing (DNP)
4.3 Fujitsu
4.4 HiSmartech
4.5 Hitachi
4.6 JCB
4.7 KEB Technology
4.8 LG Card
4.9 NEC Tokin
4.10 NTT DoCoMo
4.11 3A Logics
4.12 Toppan
4.13 Samsung Card
4.14 Samsung Electronics
4.15 Sony
4.16 Visa Japan
4.17 Vodafone

Appendix A
Company Directory
BitWallet
Dai Nippon Printing
KT Freetel
Fujitsu
Hismartech
Hitachi Ltd
JCB International Company Ltd
KEB Technology
LG Card Company Ltd
NEC Tokin
NTT DoCoMo
Samsung Card
Samsung Electronics
SK Telecom
Sony Corporation
3A Logics
Toppan Printing Company Ltd
Vodafone Japan

Appendix B
Acronyms
Tables and Figures

  • FeliCa Physical Structure
  • FeliCa Service by Company and Category, Japan
  • FeliCa Service by Mobile Operators, Japan
  • Edy Service Records, Japan
  • Edy Adoption by Company and Category, Japan: March 2006
  • DCMX Credit Card Service Scheme by NTT DoCoMo
  • Smartcard Status, South Korea
  • FeliCa (ISO 14443C) Chip Shipments, Japan, Moderate and Aggressive Forecasts: 2006 to 2012
  • FeliCa (ISO 14443C) Chip Revenue, Japan, Moderate and Aggressive Forecasts: 2006 to 2012
  • FeliCa (ISO 14443C) Reader Shipments, Japan, Moderate and Aggressive Forecasts: 2006 to 2012
  • FeliCa (ISO 14443C) Reader Revenue, Japan, Moderate and Aggressive Forecasts: 2006 to 2012
  • FeliCa (ISO 14443C) enabled Device Shipments, Japan, Moderate and Aggressive Forecasts: 2006 to 2012
  • FeliCa (ISO 14443C) enabled Device Revenue, Japan, Moderate and Aggressive Forecasts: 2006 to 2012
  • FeliCa (ISO 14443C) Chip Shipments by Environment, Japan, Moderate and Aggressive Forecasts: 2006 to 2012
  • FeliCa (ISO 14443C) Chip Revenue by Environment, Japan, Moderate and Aggressive Forecasts: 2006 to 2012
  • FeliCa (ISO 14443C) Reader Shipments by Environment, Japan, Moderate and Aggressive Forecasts: 2006 to 2012
  • FeliCa (ISO 14443C) Reader Revenue by Environment, Japan, Moderate and Aggressive Forecasts: 2006 to 2012
  • Contactless Payment Chip Shipments, South Korea, Moderate and Aggressive Forecasts: 2006 to 2012
  • Contactless Payment Chip Revenue, South Korea, Moderate and Aggressive Forecasts: 2006 to 2012
  • Contactless Payment Reader Shipments, South Korea, Moderate and Aggressive Forecasts: 2006 to 2012
  • Contactless Payment Reader Revenue, South Korea, Moderate and Aggressive Forecasts: 2006 to 2012
  • Contactless Payment Chip Shipments by Environment, South Korea, Moderate and Aggressive Forecasts: 2006 to 2012
  • Contactless Payment Chip Revenue by Environment, South Korea, Moderate and Aggressive Forecasts: 2006 to 2012
  • Contactless Payment Reader Shipments by Environment, South Korea, Moderate and Aggressive Forecasts: 2006 to 2012
  • Contactless Payment Reader Revenue by Environment, South Korea, Moderate and Aggressive Forecasts: 2006 to 2012
  • m-RFID (900 MHz) Reader-Enabled Device Shipments, South Korea, Moderate and Aggressive Forecasts: 2006 to 2012
  • m-RFID (900 MHz) Reader-Enabled Device Revenue, South Korea, Moderate and Aggressive Forecasts: 2006 to 2012
  • User Response to Contactless Card’s Benefits
  • Dai Nippon Printing Card Product Portfolio
  • HiSmartech Reader Product Portfolio
  • NEC Tokin Card Product Portfolio
Report Code: RR-COJK

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Number of Pages: 41
Number of Tables, Charts and Figures: 30
Deliverable Formats:
Price: Login
Release Date: 2Q 2006


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