Accounting for 88% of electronic financial payments! Competition among Korean e-commerce platforms intensifies

It is reported that South Korea's large technology companies are accelerating their pace of entering the financial industry. As they quickly occupy the "payment" market, the existing financial sector's sense of crisis is also increasing.

Judging from various indicators , the "three- strong pattern " of Naver , Coupang and Kakao in the simple payment service market is being consolidated.

According to a survey , Naver Financial (Naver Pay) , Coupang Pay (Coupei) and Kakao Pay accounted for 88% of the approximately 75 trillion won in electronic financial settlements last year .

The payment amount of these three companies far exceeds the simple settlement amount of all financial companies . Around the core of finance, "settlement", the competition among major companies is becoming increasingly fierce.

According to data provided by the Financial Supervisory Service of South Korea on the 13th, Naver Financial settled 898 million cases last year, with a settlement amount (including prepaid electronic payment methods and account transfers) of 30.6017 trillion won , and the settlement amount in 2019 (November - December) was 3.5249 trillion won.

In November 2019 , Naver Financial quickly climbed to the top of various payment companies after it was spun off from Naver , with Coupang Pay ranking second.

Coupang Pay was estimated to have handled 6.2571 trillion won in payments in the fourth quarter of last year, and it is estimated that payments last year alone were around 25 trillion won.

According to analysis , the reason why Naver and Coupang succeeded is because there is a solid "shopping". Convenient payment methods allow consumers to find a platform, and the amount of payment increases with the increase in shopping . In addition, the activation of non-face-to-face transactions due to the epidemic also affects the increase in payment.

Although not as good as Naver and Coupang, Kakao Pay is also on the rise. Last year, Kakao Pay settled 594 million transactions with a settlement amount of 10.7475 trillion won , up 69% from the previous year . The total payment amount of the three companies was about 66 trillion won.

Payments by e-finance firms, including Viva Republica (Toss ) , eBay Korea (Smile Pay) , SSG.com (Seppay) and Lotte Member (Lpay), totaled 75.1178 trillion won last year, according to the Bank of Korea.

Competition for dominance in the convenience payment market is expected to intensify. Naver entered into an alliance with Shinsegae Group by exchanging shares last month , and the leader of the payment market may also change based on eBay Korea’s pre-order results.

South Korea

E-commerce

compete