Naver Financial Expands Quick Settlement Service to External Merchants.
Why it matters: Naver Financial is expanding its quick settlement service, Naver Pay Quick Settlement, to external merchants.
This is a significant development, as it's the first time an industry player has offered such a service to businesses not on its platform at no additional cost.
The Key Points
- The decision to expand the service is aimed at helping online merchants who are experiencing cash flow issues. The fast settlement allows businesses to receive the proceeds from sales as early as the day after transactions are processed.
- For the fast settlement service, Naver Pay is open to applications from on-demand merchants - external online marketplaces that have integrated Naver Pay's order management service.
- Approximately 14,000 merchants meet the qualification criteria, which include processing at least 20 monthly transactions and maintaining a return rate of less than 20% for the previous three consecutive months.
- The "Naver Pay Quick Settlement" service has been operational since December 2020 and has supported approximately 100,000 smart store operators.
- About 91% of them are small and medium-sized businesses with small sales. To date, KRW 24.7 trillion ( $18.4 billion) of smart store transactions have been disbursed through the Quick Settlement service.
The Big Picture: Naver Financial is utilizing the delivery information provided by the Naver Pay order management service and an advanced fraud detection system (FDS) model to offer a quick settlement for orders transacted in an off-site shopping mall.
This move is an essential step toward integrating advanced fintech solutions to help small online businesses improve their cash flow.