NAVER Financial Targeting USD 78B in Total Transaction by 2025
NAVER Financial Targeting USD 78B in Total Transaction by 2025
NAVER Financial Targeting USD 78B in Total Transaction by 2025
- Having delivered new values in finance, focusing on accelerating business growth both inside and outside the NAVER ecosystem
- Beyond being the No.1 service in Korea, Naver Pay plans to compete globally by of-fering more services covering everyday financial activities
- The company to make greater investments in innovative financial services, based on data intelligence
- The firm to expand support for SMEs with Return Safety Care Shipment Insurance
2022-06-14
NAVER Financial announced its vision to achieve KRW 100 trillion (approx. USD 78 billion) in annual NAVER Pay total payment volume (TPV) by 2025 to reaffirm its position as the leading simple payment service provider in Korea. The company also revealed a plan to leverage its advanced technology and unrivaled data as a future growth engine to ex-pand its innovative financial services business.
[Photo] NAVER Financial CEO Park Sang-jin
Offering more value through innovative financial services and speeding up business ex-pansion in and outside of the NAVER ecosystem
As the top simple payment service provider with unrivaled usability and user benefits, NAVER Pay’s SME transaction volume continues to increase, playing a significant role in the growth of NAVER’s ecosystem, according to NAVER Financial CEO Park Sang-jin.
“NAVER Financial is offering more value in the financial market by providing innovative services designed for the financially disadvantaged, such as online SMEs and thin-filers, to help them make better financial choices and improve their business competitiveness,” said CEO Park at NAVER Financial Media Day 2022.
“NAVER Financial will accelerate the connection and expansion of services inside and out-side NAVER’s ecosystem, proving its value as the most sought-after fintech platform for consumers and SMEs in all areas of financial contact,” Park said.
Consistent with this goal, the company plans to achieve KRW 100 trillion in annual TPV by 2025, positioning itself as the unrivaled top simple payment provider in Korea. It is also aiming to increase the number of SMEs using its innovative financial services based on data intelligence — technology that integrates non-financial information such as e-commerce data generated from Smart Stores, AI, algorithm analysis and machine learn-ing — by five-fold and increase the number of monthly active users (MAU) of MyData services to 10 million.
NAVER Pay to cover every day finance activities outside of the NAVER ecosystem and strengthen its global competitiveness
What’s more, NAVER Financial will expand the number of payment destinations that accept NAVER Pay, allowing more users to experience the benefits of the service in everyday life, positioning NAVER Pay as the best option in the global online payment market.
Top priorities include increasing online payments in categories, such as automatic bill payments for content subscription or insurance, daily payments for travel, entertainment, education and expanding online overseas business franchises. For offline payments, NAVER Financial is looking to grow the number of merchants in lifestyle-related categories, such as medical care, cultural activities and mobility. Leveraging Team NAVER’s global network, the company aims to expand linkages with overseas payments, starting by ena-bling payments via LINE Pay in Taiwan.
Ultimately, the goal is to increase the proportion of payments made outside of NAVER’s ecosystem. While the proportion of payments made through NAVER is still higher, the monthly payment volume in May exceeded KRW 4 trillion (approx. USD 31 billion) for the first time. At the same time, the number of merchants doubled, and the number of monthly active users increased by more than 50%, compared to the beginning of the NAVER Financial establishment. “We believe NAVER Pay has great potential to grow as there are still many merchants to secure,” said Park.
Expanding innovative financial services based on data intelligence to drive new business growth
NAVER Financial is accelerating innovation in sales channels, financial instruments allianc-es and MyData-based services using its data intelligence capability in the financial service sector. The company is also keen to expand its user target audience from online SMEs to offline SMEs inside NAVER’s ecosystem and to sellers outside the ecosystem, increasing the number of small business owners using the service from 100,000 to 500,000 by 2025. And, as part of its goal to make its innovative financial services a future growth engine for the long term, NAVER Financial has set a goal of 10 million monthly active users (MAU) for its MyData-based MY Asset service.
“The unique financial value that NAVER Financial provides starts with data intelligence and financial content traffic from NAVER Pay, securities and real estate services, based on our fintech capability,” said Park. “For users and SMEs, we will provide expanded affiliated financial products and services through NAVER Financial, helping financial service provid-ers to innovate and attract new customers.”
With Smart Place Business Loan scheduled to launch in June, NAVER Financial’s loan ser-vices will cover both online and offline SMEs in NAVER’s ecosystem. The company plans to create a loan program in collaboration with Woori Bank and Jeonbuk Bank for SMEs reg-istered on NAVER Smart Place. The platform allows businesses to upload their store in-formation on NAVER Search and Map and take advantage of various free business tools, such as NAVER Reservation (online booking service), NAVER Order (contact-free F&B or-der service) or Smart Call (virtual phone service to support customer inquiry of offline shops).
In the latter half of this year, NAVER Financial will be the first fintech company to provide a loan program comparison service for individual businesses. Loan products for all kinds of business in the market will be listed on the service and NAVER Financial will work with banks to create greater synergy by developing financial products to suit the needs of in-dividual businesses.
The company will also continue developing data intelligence-based financial services to enhance the competitiveness of users and SMEs. Return Safety Care Shipment Insurance, which helps SMEs increase sales by providing free exchange and return service to buyers, launched in May in partnership with Carrot Insurance. In only one month, more than 7,000 businesses signed on, recording 1.7 million transactions and 12%p higher sales compared to the average NAVER Smart Store.
The MyData-based My Asset service, where users can check comprehensive financial in-formation, will be improved by connecting user traffic data from NAVER Shopping and Pay with financial content. By the end of this year, most of the financial assets that can be linked will be completed and differentiated in terms of accuracy, speed, stability and ser-vice quality.
In June, NAVER Financial plans to launch Insurance Integrated Inquiry, a new service that will offer not only insurance coverage analysis but also product recommendations based on customers’ needs as well as advice and easy-to-understand content. In the third quar-ter, NAVER Financial will link to NAVER My Place’s Receipt Review service where users can link credit card details to easily authenticate visits and write reviews, allowing business owners registered on NAVER to see reviews from actual customers based on payment history.
Expanding mutual growth with SMEs by providing Return Safety Care Shipment Insurance for a year
Mutual growth with SMEs, which is at the foundation of NAVER Financial, will continue to expand with various financial services. The Fast Payout, Start Zero Commission Fee Pro-gram offered to early-stage SMEs, a one-year exemption on NAVER Pay commissions and Safety Care Shipment Insurance will continue to support small businesses. Business Fi-nance Center, a comprehensive financial information channel for SMEs, will further strengthen its SME-only content and services.
“I will leverage my experience as NAVER CFO to continue to discover and invest in startups with innovative fintech technology while seeking partnerships and investment opportuni-ties with fintech companies outside of Korea,” said Park. “NAVER Financial will also make every effort to protect and manage personal data by mobilizing all our technologies and refining our risk management system.”
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