Hot Summer for Kakao Pay: Transaction Reached $71M in July

Kakao Pay, the FinTech affiliate of Korea’s IT pioneer Kakao Corp, announced that its service transaction amount for July 2017 surpassed ₩80 billion ($71 million) – more than a 60% increase from the previous month. Kakao Pay has been experiencing a steady growth in its service transaction of at least ₩10 billion ($8.9 million) every month since its incorporation this April.

Starting the very first mobile easy payment service in Korea in 2014, Kakao Pay has been leading the FinTech industry and accomplished noteworthy developments. The secret behind its success?

First and foremost is, of course, its convenient and practical utility. Today, you can do many things just with your smart phone, especially when it comes to money transfer. However, it is still not uncommon to see people use one app to manage one bank account and another app to manage another. Kakao Pay functions as a central control system, making it easier for the user to transfer money.

Kakao Pay has been ceaselessly putting efforts into reflecting changing customer needs in its service to enhance user experience, including the Transfer to Bank (계좌로) service and the Kakao Pay Authentication. Kakao Pay’s user experience is sensational in that it does not require any complex authentication and verification procedures you would otherwise go through for other apps.The service has partnerships with 16 domestic banks including major ones, such as KB and Shinhan, enabling free service.

Furthermore, Kakao Pay has invested a fortune in building its brand image – not only presenting issue makers like Sangmin Lee (이상민) and DEAN (딘) in various marketing activities, but also partnering with Show Me the Money 6, Korea’s biggest rapper survival audition show. The aim is to break the stodgy stereotype image of remittance and reinforce that there is an easy financial service solution for people of any age.

The recently established partnership with Ant Financial, the service provider of China’s Alipay, left many people curious about what is to come next. Kakao Pay aims at contributing to the social transition into a wallet-less society where one can enjoy economic activity anywhere at any time.

Max is an LL.M. Candidate at Georgetown University Law Center. He is interested in the social impacts made by startup companies, and longs to contribute to the betterment of emerging companies. Max can be reached at hankuhm.lee@techforkorea.com.

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