Baedal Minjok adopts Kakao Pay for Easier Payment Process


Baedal Minjok is a food delivery platform that provides information about the menu, prices, and ratings of restaurants based on user location, like Seamless in the US. When initially launched, the Baedal platform was limited to a search engine for restaurants, where users could only lookup numbers of restaurants to place the orders. Payment for delivery was done mostly by cash.

This past February, Baedal introduced Direct Pay (Baro Gyuljae) to enable call-free, in-app ordering for food delivery. The new feature however, had to work with online payment processes that in Korea are rather cumbersome to this date. Excessive security layers required by credit card companies have discouraged users from using Direct Pay. Rather than going through all the required software installations, users were seen going to the phone to directly call the restaurants.

Baedal now wants to fix the inconvenience by integrating Kakao Pay into its platform, starting this October. A new payment service similar to Paypal, Kakao Pay was released last August by Kakao Corp., and introduced payments without the need for Public Key Certificates, an identity verification tool that has been a major speed deterrence in mobile transactions.

Before Kakao Pay, Baedal Minjok offered three methods of payment in Direct Pay— credit cards, mobile phone billing, and mileage points. Payments via credit card requires the following steps: authenticating the mobile device, agreeing to the terms of service, typing in the card number, verifying personal identity with the Public Key Certificate, typing in the password dedicated to the Key Certificate, and then downloading the Certificate onto the phone. If the user doesn’t have the Certificate, it gets even worse. Issuing a new Certificate requires additional steps that can’t be done on mobile devices. And all this is done via a third party application called Mobile ISP Payment, which charges Baedal a monthly servicing fee.

With Kakao Pay, Baedal is now able to simplify its payment process into four initial setup steps: service agreement, user information, password, and credit card information.

Unlike Seamless, whose revenue consists of commission fees from the orders, Baedal depends heavily on advertising income. The addition of Kakao Pay to the Baedal platform comes as an effort to increase revenue from its mobile platform.


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