The currency exchange service offered by Toss, a banking platform run by Viva Republica Inc. of South Korea, is in high demand; in the last three weeks, the amount of Japanese yen exchanged there was 2.3 times more than at the five major commercial banks. In January, the platform started providing lifetime free currency exchange services.
On Monday, financial industry sources revealed that during the three weeks starting on January 18, 454.7 billion won ($341.4 million) in total, or roughly 21.65 billion won every day, were converted into yen via the Toss platform.
The total amount of yen exchanged at the five main commercial banks—KB Kookmin Bank, Shinhan Bank, Woori Bank, Hana Bank, and NH Nonghyup Bank—was approximately 197.2 billion won during the same period.
Major commercial banks are thinking about providing free currency exchange services in an effort to retain and secure customers in response to the new Toss service’s popularity.
Wednesday will see the release of a new debit card from Shinhan Bank that provides free currency exchange for 30 different currencies.
Through the end of this year, Hana Financial Group will continue to provide a free currency exchange service for 26 different currencies that are available with its Travelogue debit card.
In February, Woori Bank will hold a free dollar exchange service event for accounts that are only used for overseas payments. In the first half of the year, the bank intends to introduce fee waiver products.
Free currency exchange services are also being considered by KB Kookmin Bank and NH Nonghyup Bank.
