Korean banks ordered to open up payment systems to fintech firms

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"Under the FSC's plans, established banks must open their payment network to all fintech payment service providers as well as other banks. That would enable customers to use a single application to access their accounts at different banks and make payments. Fees charged on fintech firms for using the network will be lowered to one tenth of the current level to ensure fair competition.

Alongside this, amendments to the coutnry's Electronic Financial Transaction Act will mandate all banks to offer payment service providers with standardised APIs for money transfer. It will also prohibit banks from any discriminatory action against payment service providers using their payment system in processing money transfer and charging fees.

In the medium to long term, the FSC says it will consider allowing qualified fintech payment service providers direct access to the payment system without relying on banks’ services."

From "Korean banks ordered to open up payment systems to fintech firms".

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