Danal eyes global market

A small Korean venture which started off a dozen years ago selling ring tones to cell phone users is set to make a giant leap forward, taking its mobile payment solutions to the United States.

Danal Co., a leading provider of mobile payment services in Korea, will launch BilltoMobile in the United States in about three months, enabling Americans to charge online purchases to their mobile phone bills.

"The United States is finally opening to us," Park Sung-chan, CEO of Danal Co., said at his office in Bundang, south of Seoul.

His efforts for the past three years trying to let America know what this little-known Korean company has got to offer seems to be paying off now, he said.

Last week, Danal announced that it has sealed a contract with a U.S. mobile carrier to develop and provide mobile phone-based payment services. It did not disclose the name of the company, but indicated that it was a major company with a nationwide network and a significant subscriber base.

Park said he was confident of success in the United States, given that the state has plenty of paid digital content but no adequate online payment system in place.

At present, Americans use credit or pre-paid cards when they buy music and other items traded online.

"Our service cuts an edge with convenience, security and a low fee structure," Park said.

It is the norm in internet-savvy Korea, with 1.8 trillion won worth of purchases made through mobile phones a year.

People just put their mobile phone number, instead of inputting confidential credit card and other information, to buy goods online. Then, a six-number authentication code is sent instantly to their phone in the form of a short message. When customers key in the authentication code they received, the purchase is complete and charged to their next mobile phone bill.

Cyberspace trading means that mobile payments can be made internationally.

Park is pushing for the launch of a cross-border payment network, which would enable a person in Korea to buy music and other content offered by a U.S. website through his or her cell phone.

The International Payment Network will be rolled out in countries where Danal`s mobile payment services are available such as Korea, Taiwan, China, in concurrence with the U.S. launch.

"Danal has established itself in domestic mobile payment and digital content fields. It stands now at a crucial juncture toward becoming a global player serving global customers," the CEO said.

The opportunities are huge abroad. Looking just at the United States alone, there are 270 million mobile phone subscribers and 220 million internet users.

"I think the U.S. mobile payment market is easily 8 or 9 times that of Korea," he said.

Danal, with its U.S. subsidiary Danal Inc., aims to generate annual revenue of $300 million in the states in five years.

It plans to penetrate into other English-speaking countries soon, including Canada and the United Kingdom.

Looking further ahead, Park said his company is considering listing its shares on Nadsaq, although it is not a priority for the immediate future.

(milaya@heraldm.com)



By Lee Sun-young