Facial recognition technology is expanding into South Korea’s payment sector, with companies racing to establish a foothold.

Shinhan Card was an early adopter, launching a pilot in 2019 and later expanding to select convenience stores and supermarkets.

However, in-person face registration and public skepticism hindered the rollout. The service remains limited in availability.

The sector gained momentum with the entry of fintech firms Naver Pay and Toss.

Naver Pay introduced facial payment on university campuses and plans to launch its own terminal this year.

Toss began in February, distributing terminals and offering subsidies. Around 20,000 stores in Seoul now support Toss’s facial payment feature.

Lotte Card also received approval and will begin with airports.

Despite growing adoption, challenges persist. Financial institutions cannot share facial data, causing compatibility issues.

Experts foresee a “winner-takes-all” outcome, as merchants may avoid installing multiple terminals. Data security and liability concerns also hinder broader rollout.