Fintech firms in South Korea file petition against Apple’s restriction for NFC policy

South Korean fintech companies have decided to file a petition against Apple for closure of near field communication (NFC) policy to external app developers.

According to reports by Pulsenews, the petition has been filed with the Korean Fair Trade Commission (KFTC) and the movement is led by Korea Fintech Industry Association (KORFIN). South Korean fintech companies argued that due to the closed policy, they are unable to offer various fintech services to local consumers by making use of NFC functions of iPhones.

“The companies have been in talks with consumer advocacy groups to overcome technical constraints in bringing the petition under the name of the association. Due to Apple’s closed policy, consumers should not be deprived of opportunities to enjoy various fintech services,” Lee Seung-gun, chairman of KORFIN said, as reported by Pulsenews.

Major Korean fintech companies including Hankook NFC Co., eB Card Co., Kona I Co., Interpay Co. and KTB Solution have jointly decided to file the petition by this month. The fintech firms argued saying that the policy by Apple to limit NFC function to its Apple Pay may be in violation on consumer protection.

Apple’s closed policy has forced fintech company eB Card that developed an NFC-based mobile transport card, to offer its services only to Android mobile users. Also another fintech firm Kona I developed a mobile payment platform based on NFC that does not work on iPhones.

“Consumers have rights to enjoy NFC-based services but Korean consumers cannot use the services even though they purchased the same type of iPhones as those in the U.S. and this is nonsense,” Hwan Seung-ik, CEO of Hankook NFC said.

Near-field communication is a set of communication protocols that enable two electronic devices, to establish communication by bringing them within about 4 cm (2 in) of each other. This function was exclusively used for Apple Pay. Korean customers` access to NFC services including mobile payment, mobile transport cards and identification of credit card users is denied by Apple’s API. Apart from Apple, Samsung Electronics Co. released its NFC function to external apps.