Large-scale businesses such as KakaoPay, KT, and 11STREET have joined Zero Pay Project, which is a simple payment service for small businesses.
Although it had been criticized by media due to lack of franchise stores and lack of use by consumers, it is expected to make a turnaround and expand its infrastructures as these large-scale businesses have decided to join.
It is expected that synergy will be doubled as many VAN (Value Added Network) companies are already participating in Zero Pay Project on top of participation by KakaoPay and others.
According to industries, 15 businesses such as KakaoPay, KT, and 11STREET have registered themselves as participants of Zero Pay Project. 16 VAN companies such as Korea Smart Card and Koscom have also joined this project.
As a result, Zero Pay Project is now equipped with strong infrastructures as more than 30 large-scale businesses have decided to be a part of Zero Pay Project.
Seoul-si and Shinhan Bank have started developing relevant systems to launch ‘Corporate Zero Pay’ on the 15th of April.
By securing VAN companies and large-scale businesses as participants, there is a higher chance that Zero Pay will be a successful project.
It is expected that dynamics of markets will be different as well as KT, a major FinTech business called Finnq, 11STREET, and KakaoPay have become part of Zero Pay Project.
Many businesses that are participating in Zero Pay Project have huge influence on markets.
Payment providers that are participating are KakaoPay, KT, eBay Korea, 11STREET, Korea Digital Receipt Co., KG INICIS, Koscom, HANPASS, Finnq, EB Card, December & Company, T-Monet, Harex Infotech, KIS VAN, and KSNET.
VAN businesses that are participating are Paymint, Paycoq, KOSCOM, Kovan, Korea Financial Telecommunications & Clearings Institute, First Data Korea, KOCES, Korea Smart Card, Smartro, KICC, KSNET, DaouData, JTNET, NHN_KCP, NICE Information & Telecommunication, and KIS VAN.
“We were confirmed by Ministry of SMEs and Startups (MSS) that any business that agrees to four principles of Zero Pay can participate in Zero Pay Project and that MSS will not be involved with policies of individual business.” said a representative for KakaoPay. “As a result, we have decided to participate in Zero Pay Project.”
“We have decided to participate in Zero Pay Project to reduce settlement fees for small businesses.” said a representative for KT. “We are currently discussing about how we are going to commercialize our QR settlement system.”
Small Business Simple Settlement Promotion Business Group, which is under MSS, is going to evaluate qualifications of participants sometime next month. MSS is going to start connecting POS devices from franchise stores to Zero Pay and finish developing Zero Pay settlement service and system between end of April and early May.
Although there are still problems such as firm banking fee and others, Zero Pay Project may be able to get rid of negative image through participation of large-scale businesses and VAN businesses. It is heard that some participants are discussing with banks about linking a service with credit offering function to Zero Pay in order to enhance services provided by Zero Pay.
Staff Reporter Gil, Jaeshik | osolgil@etnews.com