Value-added network, or VAN, operators are resisting Hyundai Card’s recent decision not to pay sales slip fees for payments made by Samsung Pay, the Korean tech giant’s new mobile wallet service.

VAN companies get paid for collecting credit card slips from merchants and inspecting illegal card use. They earn about 20 to 30 percent of the revenue from the process. 

But Hyundai Card, the nation’s second-biggest card issuer affiliated with Hyundai Motor Group, has recently decided to stop paying fees when it comes to purchases made by Samsung Pay, saying there is little possibility of abuse due to the service’s security system such as finger-print identification.

“We may be the first to do so. but believe other card firms share the same understanding,” said a Hyundai Card official in an interview.

VAN companies immediately objected. They are also considering charging Samsung for taking advantage of their network systems.

“We understand the payment market is fast changing. But there should be enough discussion with the stakeholders before there is any drastic change within the industry,” said an official from a VAN company.

Industry watchers predict the recent disputes will escalate as Samsung Pay, along with the soaring mobile payment market, is fast gaining traction.

Unlike Apple Pay and Google Wallet based on the Near-Field Communications technology, Samsung Pay, using the Magnetic Secure Transmission system, is compatible with existing credit card terminals.

Because stores do not need to install extra hardware, the payment service, coupled with Samsung’s latest smartphones, is securing a firm footing.

According to Samsung, more than 2,500 people register to use the service every day, with the accumulated transactions exceeding 35 billion won ($30 million) last month since its August debut.

The company started its U.S. service on Sept. 28 and more launches are set for other markets in phases. 

By Lee Ji-yoon (jylee@heraldcorp.com)