Electronic payment services such as offline payments using QR codes are becoming increasingly popular among young North Koreans in major cities, Daily NK has learned.
Speaking on condition of anonymity, a source in North Korea told Daily NK on Tuesday that “many people are using a smartphone payment application made by Samhung IT Exchange Center,” usually “residents of Pyongyang, provincial capitals and other big cities who use smartphones.”
Samhung IT Exchange Center is one of North Korea’s few software developers. It develops multiple products under government contract. North Korean media recently reported that Samhung IT Exchange Center’s “Samhung Electronic Payment Service System” and “Samhung Electronic Wallet” are gaining popularity.
The simplified smartphone payment application mentioned by the source appears to be one of these two. However, Daily NK has yet to determine whether the two applications are actually the same.
“For payments, all you have to do is touch your personal visual code on a UV reader,” the source said. “In Pyongyang, they now say that anyone who opens a wallet instead of using a visual code is old-fashioned.”
North Koreans have little faith in banks. The country’s 2009 currency reform left the public deeply distrustful of the authorities and banks. Since then, North Korea has been trying to reduce public distrust and normalize banking operations.
Part of this effort appears to be reducing the public’s deep-rooted mistrust of banks by providing convenient, simplified payment applications. In fact, simplified payment applications are becoming increasingly popular among North Korea’s youth, the source said.
“Electronic payment systems are spreading rapidly, especially in Pyongyang, provincial capitals, downtown areas and central cities, as well as among the youth, and are gradually gaining public trust,” she said. “Even the elderly are having fun, learning how to use the apps from their children overnight and putting their money in the banks to make payments.”
“This payment service system is the most widely used in shops, banks, restaurants and elsewhere after Ullim,” she said. “In addition to Samhung IT Exchange Center, IT companies and exchange companies are also developing various electronic payment applications.”
This suggests that while the Ullim and Kangsong electronic payment apps are currently in use in North Korea, more are under development. North Korea appears to be developing and deploying various payment apps to absorb idle cash.
At the same time, North Korea is reportedly making efforts to improve the compatibility of electronic payment cards needed for simplified mobile payments.
“When the digital payment systems are created, they will be compatible with internal bank intranets, depending on whether you’re in the capital or the provinces, where you work, who you are, and which bank you’re dealing with,” she said. “You can use a wide range of cards, so the Chonsong card isn’t the only one that can make electronic payments.”
When North Korea first produced simplified payment applications, only the Chonsong electronic payment card issued by the country’s central bank could make electronic payments. However, the number of cards that can make electronic payments is growing, making such payments more accessible to the public.
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