Naver Pay that allows shopping payments and account wire transfer from Smartphones and PCs is finally released. 15 million users that have Naver IDs can use it right away on their Smartphones.
Naver (CEO Kim Sang Hun) announced that it is formally servicing ‘Naver Pay’ starting from the 25th that allows payments, charging, saving, and wire transfers through Naver ID.
Naver Pay is a simple payment that allows to shop without any joints from looking for products through search to payments. This is combined with previous Naver’s simple payment service. Not just credit cards, but it also has all the functions that are needed in e-commerce such as account simple payment, wire transfers between individuals, saving and charging points. One can freely use this service when he or she receives confirmation during the first payment for account information and cards that he or she frequently uses. It definitely can help with condition of shipment, return, and exchange processes as well as management of point combination such as saving and charging.
The reason why it unified account wire transfer is a part of it wanting to differentiate itself from Daum Kakao. In Daum Kakao, one needs to download Bank Wallet Kakao application for account wire transfer and transfer method besides Kakao Pay. Even without knowing other person’s account number, one can check through Naver ID, phone number or address, or history of past wire transfer. Fact that both companies allow wire transfer is a similar trait that both companies have.
There are 8 Naver Pay financial institutions that allow registration. Naver Pay started card simple payment with Samsung Card, Shinhan Card, and Hyundai Card and started account simple payment and wire transfer service with NH Nonghyup, IBK, Pusan, Shinhan, and Woori Bank. It’s going to apply Naver Pay on KB Card, NH Nonghyup Card, KN Bank, Lotte Card, BC Card, and Hana Card.
Number of affiliates of Naver Pay surpasses number of affiliates of Kakao Pay. Number of affiliates that allow payments through Naver Pay is 53,000 compared to that of 160 affiliates that allow Kakao Pay. Number of affiliates increased 4000 just in 3 months after introducing mobile simple payment Naver Check. It provides offline store product information from everywhere in Korea such as outlets, food producers, and department stores where one can buy clothes, fashion products, electronic devices, and O2O platform ‘Shop Window’. It is also linked to Naver digital contents such as music, movies, web toons, and games.
According to Naver, there are 24 million daily visitors to Naver Mobile, and 15 million (61%) of them log in automatically. Out of Kakao Talk users, 4.4 million people user Kakao Pay.
It is hard to see who is superior just by merely comparing quantitatively number of affiliates and users of Naver Pay and Kakao Pay. This is because while Naver Pay’s affiliates and users are based on PC online, Kakao Pay is based on mobile centered on recent e-commerce. Daum Kakao’s affiliates are using living contact-type service that connects offline and mobile such as large-sized shopping malls, delivery application, work rate and electric light rate of TOEIC, and payment of local tax. On the other hand, Naver connected previous PC-based small and medium-sized online affiliates to mobile.
Naver also focused on financial security that protects illegal dealing such as hacking and fishing.
Naver Pay beforehand blocks illegal dealing through pirates by choosing virtual card number method that is mapped with Naver IDs without saving card numbers. Fraud Detection System (FDS) based on Big Data prevents illegal dealing by detecting unusual and strange purchase pattern beforehand. Even after payment is completed, it is operating 24-hour payment pirate report center to monitor any unusual activities.
Introduction of variety of competitors such as Samsung Pay, Google Pay, and Apple Pay is something that needs to be looked at closely. As competitors with platform and equipments jump into the market, it is predicted that attacks from newcomers won’t be easy.
Director Han Sung Sook who is in charge of total Naver service said that Naver intensely focused on developing Naver Pay to solve uncomfortable experience that users feel when using Naver.
■Comparison of simple payments between Naver and Daum Kakao
▲Names of simple payments for Naver and Daum Kakao are Naver Pay and Kakao Pay and Bank Wallet Kakao respectively. Release dates for Naver Pay and Kakao Pay and Bank Wallet Kakao are June of 2015 and September of 2014 and November of 2014 respectively.
▲Naver Pay allows simple payment through credit cards or registration of bank account and saving and management of points. Kakao Pay allows simple payment through credit cards, and Bank Wallet Kakao allows wire transfer payment through cash cards.
▲Numbers of affiliates for Naver and Daum Kakao are 53,000 and 160 respectively. Naver’s major affiliates are people who are working in small and medium-sized commerces and industries and Naver shopping affiliates. Daum Kakao’s major affiliates are delivery application, home shopping, and major shopping malls.
▲Numbers of users for Naver and Daum Kakao are 16 million Naver Mobile users and 4.4 million Kakao Pay registers respectively.
▲Allied finance institutions for Naver are 3 credit card institutions and 5 banks (It is expected to expand in July). Allied finance institutions for Daum Kakao are financial corporations such as all card institutions in Korea and banks.
▲Security methods that Naver uses are FDS and virtual card number method that is mapped with Naver IDs. Security method that Daum Kakao uses is application of LG CNS MPay and it also encodes personal information and card information.
▲Event that Naver is holding for users is that it saves a dollar per credit card registration during first payment. Event that Daum Kakao is holding for users is that it compensates during user’s first registration.
Reference = each company
Senior Reporter Lee, Kyungmin | kmlee@etnews.com
