Web-based Payment Solutions for Websites for Korean Customers웹사이트를 위한 웹 기반의 결제 솔루션




PayGate is a global electronic payment (e-Payement) service provider established in July 1998. The company first started off with a credit card payment system and expanded its business domain by adding other payment services such as bank-based account transfer system and mobile payment system.


To use PayGate services, one should be running a registered business, whether personal or corporate. If eligible, one should create a PayGate account, fill out the forms provided and conclude a contract with PayGate. After completing the requirements above, one needs to pay a set up fee of KRW 110,000 (VAT inclusive) and an annual fee of KRW 110,000 (VAT inclusive) to PayGate upon using its services.

In addition, one must make a payment of about KRW 3,000,000, if the business is domestic (Korea), or about KRW 10,000,000, if the business is international, to secure an warranty insurance from an insurance company in case of delivery accidents.

The API and accompanying manual for all PayGate services are provided by PayGate online[2].

1. Credit Card Payment Service

This service allows the vendor to receive credit card payments from customers. All domestic credit cards are supported including KB, BC, Samsung, Shinhan, Lotte, KEB and Hyundai card. To prevent fraud and to establish a secure payment system, the service offers three (3) security authorization options, namely: ISP (Internet Secure Payment), Visa 3D (Anshim Click) and AA (Amount Authentication).

When authorizing credit card payments using ISP and Visa 3D, a digital certificate installed on PC is used as the authorizing agent. This digital certificate is detected via an active X plug-in or a pop-up window.

Meanwhile, AA or Amount Authorization, developed by PayGate, is the first standard web-based e-payment authorization method approved by the Korea Financial Supervisory Service (KSS). Korea’s Telecommunications Technology Association (TTA) also has verified the safety of AA.[3]

AA was developed to be an alternative for the traditional way of authorizing payments like ISP and Visa 3D which require plug-ins and pop up windows which are vulnerable. AA is based on Web 2.0 technology and therefore does not require an active X plug-in to be installed or an additional pop up window.

Moreover, it supports all Internet browsers (Internet Explorer, Firefox, Chrome, Opera and Safari) and OSes (Linux, Windows and Mac). Furthermore, mobile devices (iOS and Andriod) are compatible with the service.

You can view the Korean version of the patent that PayGate acquired for AA here.

The fee rate for this service is 3.5% and the settlement is done 10 days after the date of transaction.

Authorization Options

Credit Cards


ISP KB and BC cards only. Digital certificate installed in PC is used to authorize payment
Visa 3D Samsung, Shinhan, Lotte, KEB and Hyundai cards only. Digital certificate installed in PC is used to authorize payment
AA All credit cards issued domestically All cards are supported by AA, the standard web-based authorization method developed by PayGate





Landline Payment

4% ~ 7%


Gift Certificate Payment

11% ~ 17%

T-money Payment

3% ~ 8.5%

Mobile Payment

4% ~ 7%

Credit Card Payment





(Minimum: KRW 200/case)

Bank Transfer

2.0% (Minimum: KRW 200/case)

Virtual Account

KRW 400/case

KRW 200/case

2. Real-time Bank Transfer

Through this service, the vendor can receive payments from customers via bank transfer. All domestic banks are supported by the service.

The customer orders his or her product from the website and enters the required payment information which will be received by PayGate. Then, PayGate uses this information to request a bank transfer from the customer’s bank. After this, the bank sends the result of the bank transfer to PayGate, and PayGate in turn sends the result to both the customer and the website’s owner. Finally, the vendor that received the result delivers the product to the customer.

Meanwhile, upon confirmation of bank transfer information, the customer’s bank transfers the payment to PayGate which will deduct applicable fees and transfer the remaining amount to the website’s owner. According to PayGate, digital certificate is not required for transactions less than KRW 100,000.

The transaction and settlement histories can be viewed in real-time on PayGate’s dashboard.

The fee charged by this service is 2.0% but the minimum fee is set at KRW 200. Just like the credit card payment service mentioned above, the settlement is done 10 days after the date of transaction.

3. Virtual Account Payment Service

This service allows the vendor to receive payments in the form of deposits made by customers to a randomly generated virtual account created by banks.

The account number of the virtual bank account is sent to the customer through SMS or e-mail. Upon receiving the information on the virtual account, the customer can make a payment by depositing his or her payment to the virtual account that was provided electronically.

All major banks are supported by this service, and the fee for each transaction is KRW 300. The settlement is done 10 days after the date of transaction. Similar virtual bank transfer services are also offered by Korean banks.

For instance, KEB (Korean Exchange Bank)’s virtual account payment service[4] is quite similar to what PayGate offers. It generates a random virtual account that a company can use to receive payments from customers. The customer deposits the amount that he or she intends to pay to the virtual account to make the payment. The bank processes the payment deposited in the virtual account and then transfers it to the company using the service.

There can be two scenarios for KEB’s virtual account payment service. One is establishing a direct virtual account payment network with KEB through an exclusive network line. In this case, the bank itself grants the user (company) virtual accounts that it can use to receive payments from customers.

Another scenario would be having a “mediator” in between the vendor and the bank. In this case, the bank issues virtual accounts to a mediator which will in turn assign specific bank accounts to the customer of the vendor (seller). This is the case for PayGate’s virtual account payment service – that is, PayGate acts as the mediator between the bank and the vendor in granting virtual accounts, and at the same time, it provides the payment processing infrastructure allowing the vendor to use virtual account and payment processing service at the same time.

The minimum fee for the service is KRW 100,000 per month with KRW 300 per case of deposit to one of the virtual accounts.


4. Mobile Micro Payment Service

With this service, the customer can make a payment on his or her mobile device by entering a pin number sent by his or her mobile operator.

This kind of service is especially beneficial for micro payment services in which making a payment using credit card is may not the best option. All web browsers are supported and active X plug-in is not required as this service is based on Web 2.0 technology.

The fee rate is set at 8.0% and the settlement is done 2 months after the date of transaction.


U+ Electronic Payment[5]

U+ Electronic Payment service is an ePayment service offered by the South Korean mobile operator LG U+. Its electronic payment solution line up is quite similar with PayGate’s in that it offers credit card, real-time bank transfer, virtual account and mobile payment services.

What distinguishes U+ from other ePayment services it its landline payment service, gift certificate payment service and T-money payment service.

1. Landline Payment Service

This service allows customers to make and verify payments using one’s telephone landline. The customer is billed through his or her telephone bill. Once the product is delivered to the customer, the vendor requests payment from U+. U+ in turn requests payment from the mobile operator KT which provisions the infrastructure that enable over-the-telephone payments. KT then bills the customer requesting for a payment for the product delivered. Once the customer makes the payment to KT, it is transferred to U+ and U+ then transfers it to the vendor after charging its service fees.

LG U+ is reportedly creating its own infrastructure for over-the-telephone payments to replace KT’s.

The monthly payment limit set for this service is KRW 300,000 effective July 2011.

2. Gift Certificate Payment Service

This service is as simple as allowing the customer to make a payment using the 4-digit pin code that can be revealed by scratching the amount section of a gift certificate that can be bought in selected stores. What the customer needs to do is just enter the pin code on the payment window.

This service is considered to be relatively safer than other payment services for the vendor because the customer already makes a payment when buying the gift certificate – that is, there is no concern for not being able to collect a payment from the customer because the payment has already been made and it just needs to be collected from the party whichever issued the certificate.

To briefly summarize the flow of payment for this service, the customer first purchases a gift certificate from the certificate-issuing agency. Then, the customer buy a product (makes a payment) using his or her certificate and the product is delivered to him or her. U+ requests payment from the certificate-issuing agency and the agency verifies the payment and pays the corresponding amount to U+. U+ then settles the payment and transfers it to the vendor.

3. T-money Payment Service

This service is basically a combination of ePayment and the famous T-money card. It allows domestic T-money card users, more than 7 million and counting, to make payments using their prepaid, reloadable T-money cards.

To learn more about the T-money card, click here.

The service currently has more than 2 million users. This service is considered to be quite convenient because T-money cards can be reloaded both offline (in designated local stores or kiosks) and online (via PC or smartphone), on the go. Below is a table outlining the costs of the three services introduced above, as well as other ePayment services, by subscription type.



Free 2,000 SMS

Contact LG U+

for details

Registration Fee

KRW 200,000

KRW 300,000

KRW 400,000

* U+ does not charge annual fees.


1.  [1] PayGate Website

2.  [2] PayGate API

3.  [3] PayGate’s AA, first standard web-payment authorization method

4.  PayGate Patent

5. [4] KEB Virtual Account Payment Service

6.  [5] U+ electronic Payment Website

7. About T-money

One thought on “Web-based Payment Solutions for Websites for Korean Customers웹사이트를 위한 웹 기반의 결제 솔루션

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