Every country has a tech giant that leads the tech revolution and Korea is no different. The tech giant leading Korea is Kakao corp.
Kakao is an internet company in South Korea and was established in 2010. Daum Communications and Kakao corp merged together in 2014 and this app was formed. The company rebranded twice and in 2015 it became to be known as Kakao.
Kakao talk commonly referred to as Katalk in South Korea is messaging app available on smart phones and desktop. Kakao talk is basically the Korean version of whatsapp. The Kakoa pay option was added in 2014 and was debuted as the country`s first online payment app on mobile.
As the world advances towards a more digitalized future, the use of bills and coins is reducing and the use of cards and virtual money is increasing day by day. Leading this trend of not carrying bills and coins is Kakao corp with its app Kakao pay. Kakao pay is moderately replacing conventional banking services.
What is Kakao Pay?
It is basically the paypal of South Korea. Kakao pay is a digital financial platform through which you can pay and transfer money as well as buy things online just by tapping on your mobile phones. The little signs of QR code at local cafés, restaurants, and retails-they indicate that payment through kakao pay is possible. However, kakao pay can be difficult and complicated to set up for foreigners as it is in Korean language. So, do not worry as I give you steps to help you understand kakao pay app set up in an easy way. Just follow the steps given below.
Things you need to setup Kakao Pay
The bank account and mobile phone number both must be registered under the same name as the one you used to create your Kakao talk account. This information will be used to verify your identity and link Kakao pay to your Kakao talk account. In order to start using Kakao pay you must have an active bank account or mobile phone number.
- Bank account
- Mobile phone number
Following are the steps to help you create your Kakao pay account, and a guide for easy set up of Kakao pay for foreigners.
Step 1 : Set up Kakao Pay
Firstly you need to open a Kakao pay account. After opening Kakao talk app, click on the “more tab” on the right corner. Then tap the grey-ish rectangular bar which is located just underneath your profile photothat says send money (돈을 보내다) and pay (지불).
Step 2 : Link Bank account to Kakao Pay
After successfully setting up your Kakao pay account, you will be taken to the Kakao pay screen. Here you will have to add and link your bank information to your Kakao pay account. Please do make sure that you link your active bank account as all the payment and transfer you do on Kakao pay will be withdrawn directly from the bank you linked.
Linking your bank account is pretty straightforward. Just click on the tab directly below the balance on your Kakao pay, which should show 0 won when you sign up for the first time. Just for your better understanding the left side of the tab says “there is no connected bank account” (연결된 은행 계좌가 없습니다) and on the right it says “add an account” (계정 추가).
If you would want to add more than one bank account you can add it once you have finished setting up Kakao pay. Then you will see a page where they will ask you to input your bank information. Then choose your bank from the list which includes both names and logos of the Korean banks. After selecting the bank, enter your bank account number. However, please do not confuse bank account number with card number.
If you are unsure about your bank account number then, you can find it in your passbook issued together with your bank card. You can also find it at a local ATM by using your bank card. When you finish entering your number, press “authentication request” (인증 요청) to confirm that the information is correct.
The Critical Part
After this comes the most confusing part. Once the authentication request goes through Kakao pay will deposit 1won to the bank account you just registered. This process ensures that the bank information you give is correct. If you use online banking service with your own bank, then you can check whether you have received the 1 won or not simply just by scrolling down your transaction history on your mobile phone or computer. If not, you will have to visit the nearest ATM or bank to find it. Please pay attention to the name of the person that deposited 1 won. This will look like a made-up a name consisting of 4 digit letters. Then memorize it or copy the 4 digit name and return to the Kakao pay and enter the 4 digit name.
Lastly, press confirm (확인) to complete the confirmation of your bank account. After this comes the final step which is to again confirm your account, so it adds another layer of security. Here you have to confirm your mobile phone number. Check the 2 huge digits and press “ARS”, Authorization phone call request (승인 전화 요청). After a few seconds you will receive an automated phone call in Korean so please do not hang-up or get nervous as all you have to do is enter the 2 digit number you just saw on your screen and then the call will then end on its own. After completing this would mean that you have completed all the process of becoming a Kakao pay user now you can do Kakao pay for foreigners.
Although it is very complicated to set-up a Kakao pay account but it is worth it, as it will make your stay in Korea a lot easier. The features of this app are designed to make payments easy via Kakao pay for foreigners.