NAVER Financial’s Monthly Fast Payout Hits KRW 1 Trillion
NAVER Financial’s Monthly Fast Payout Hits KRW 1 Trillion
NAVER Financial’s Monthly Fast Payout Hits KRW 1 Trillion, Saving KRW 89.6 Billion in Financial Costs for SMEs Over 2 Years
- Cumulative fast payout to about 84,000 SMEs two years after the service was launched amounts to KRW 17.3 trillion
- Fast payout accounts for 41% of NAVER Smart Store gross merchandise volume (GMV), of which 62% is paid to SMEs, becoming an essential service for SME turnover
December 15, 2022
NAVER Financial Corporation (CEO Park Sang-jin) announced that a cumulative amount of KRW 17.3054 trillion was distributed to SMEs over the last two years since the launch of the NAVER Smart Store fast payout. This has resulted in savings of approximately KRW 89.6 billion on financial expenses. Notably, in November, the monthly fast payout amount reached KRW 1 trillion, marking a significant milestone in the history of NAVER's fast payout service.
The fast payout service, launched in December 2020, provides 100% of the payout amount to sellers on the day after the orders are collected by a courier and three days after payment is made. NAVER Financial shortened the payout cycle, which normally takes about eight days, to three days using its in-house developed fraud detection system (FDS). Any Smart Store seller who meets specific requirements, such as having at least 20 monthly orders placed for three consecutive months, can use the service without collateral. This has made Smart Store fast payout the fastest and most easily accessible payout service.
The fast payout service accounts for approximately 41% of the total Smart Store GMV every month, and 62.3% of that amount is paid to small- and medium-sized enterprises(SMEs), making the fast payout service essential for Smart Store turnover. The actual financial support effect on SMEs is apparent as well. With the cumulative amount of KRW 17.3054 trillion through the fast payout service over the past two years, SMEs saved about KRW 89.6 billion in interest costs.
Especially, due to high-interest rates and high inflation, the perceived effect of fast payout on SMEs is expected to be further expanded as the monthly fast payout amount surpassed KRW 1 trillion in November.
Considering that it took four months to reach a cumulative amount of KRW 1 trillion when the fast payout service first launched, the monthly amount of KRW 1 trillion highlights the steady improvement of the service. This progress was made possible through continuous efforts to shorten the payout cycle and offer fast payout for shipping fees paid by buyers, which is a first in the industry. The shipping fees paid through the fast payout service in the two months since October amounted to KRW 66.5 billion.
According to NAVER Pay Executive Officer Lee Hyang-cheol, “The fast payout service has outperformed the market over the past two years, and it is considered the most advanced presettlement service in the industry. NAVER Financial plans to continue offering innovative services that leverage its strengths in data and technology to drive meaningful changes in the market.”
[Note] NAVER Financial has continuously improved its service with its self-developed FDS established through Smart Store transaction data since its launch in December 2020. The service is now considered the fastest payout service in the global e-commerce industry. The company has achieved this by (1) shortening the payment cycle to the day after shipment completion in February 2021, (2) increasing the fast payout amount to 100% in April 2021, (3) further shortening the payment cycle to the day after shipment collection by a courier in December 2021, and (4) expanding the fast payout service to shipping fees.