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KakaoPay Q3 2023 Financials: TPV and Revenue Surge

Source: Kakaopay

Pangyo, South Korea - KakaoPay (KRX: 377300) reported its third-quarter financial results, which showed increased revenues and payment volumes compared to last year.

Why It Matters: 

Kakao, with KakaoTalk users equivalent to the population of South Korea, and its subsidiary's payments and fintech businesses are a barometer for understanding South Korea's fintech industry. 

It is also worth noting that the Yoon Seok-yeol administration recently took a swipe at Kakao.

The Key Points

  • KakaoPay's total payment volume (TPV) grew 18% year-on-year to KRW 36.2 trillion in Q3. Revenue reached KRW 158.9 billion, an increase of 12%.
  • TPV from revenue-generating services exceeded KRW 10 trillion for the first time, an increase of 15% year-on-year.
  • Payment TPV increased by 16% year-on-year due to growth in online, offline, and cross-border transactions. Financial services TPV increased by 13% due to new credit options.
  • On a standalone basis, KakaoPay revenue grew nearly 16% year-on-year. Operating income reached KRW 12 billion, a margin of 8.5%.
  • Consolidated revenue grew 12.4% year-on-year, driven by a 17%+ increase in payment services revenue. Financial services revenue increased 1%.
  • Operating and net losses narrowed for the third consecutive quarter as KakaoPay and the units generated profits.

What they're saying: 

"KakaoPay will continue to expand its payment, securities, and insurance services to enhance convenience and value for users,"

said CEO Shin Won-geun.

What Comes Next?

Analysts will be watching to see if KakaoPay can maintain momentum in its core payments market and replicate growth in emerging segments such as securities and insurance. 

With solid Q3 results, KakaoPay appears poised for continued expansion.