[팩플] The order of pig feet is also a green window? Naver’s ambition of’payment fee 0′

Open the app → enter’jokbal’ in the search box → select a store → choose a menu → pay in the app.
It seems that it will only be done in delivery apps such as People of Delivery and Coupangitsu, but it will also be done on Naver. Naver, the largest portal in Korea, is showing motivation in this market. It doesn’t mean that Naver will deliver. In order to introduce more local stores to Naver, the period of free payment fees has been extended.

· Naver until March 31st Non-face-to-face order service It was decided not to receive payment fees for’Smart Order’ from small and medium-sized merchants. It was free until the end of 2020, but it was extended by 3 months. Originally, the commission was in the range of 1.0 to 2.9% of the consumer payment amount. Smart order, which started in September last year, is a service that allows users to enter a’cafe’ or’jokbal’ in the green window of Naver, and then select an offline store to order and pay (Naver Pay), just like a regular search.
Naver decided not to receive fees for’Naver store payment’ used at beauty salons and nail shops until the end of March. Search for a beauty salon on Naver, make a reservation, and actually visit and receive treatment at the store. Payment with Naver PayIt is a service to do.

There are two main things Naver is aiming for.
· Effect of influx of small business owners: As Corona 19 made it burdensome to line up in front of ordering and checkout counters, mobile non-face-to-face orders increased at offline stores. For small business owners, contact points that can be ordered online have become more important than street signs. A platform that allows you to receive orders without burdening payment fees is attractive to small business owners.
· Consumer lock-in effect: What platform companies like Naver want is’do everything with Naver’. As more restaurants and cafes enter Naver Smart Order, consumers can use only Naver without turning on other apps. The’lock-in’ effect of holding the consumer to the app becomes stronger.

· The simple payment market is fiercely competitive. Delivery apps like Baemin and Yogiyo, payment apps like NHN Payco, and IT platform companies like Naver and Kakao all jumped in. When ordering and paying with the app, using the company’s’OO Pay’ is a preferential treatment.

Fintech sales, including Naver Pay, grew sharply even last year when Corona 19 swept away. In the third quarter, sales were 174 billion won, an increase of 68% compared to the same period last year.
· The entire Naver new business has also grown rapidly. In the third quarter of last year, sales of new businesses (shopping, finance, cloud, and content) reached 6507 billion won, up to 92% of sales of existing businesses (search and advertisement) (71 billion won). 48% of the total quarterly sales came from new businesses.

This means that the payment agency fee for the Naver Pay payment is free. The fees for search advertising products to appear at the top of Naver search remain the same.
· Large franchises such as Starbucks and Pascucci are also included in Smart Order, but are not eligible for this payment fee free. Naver explained, “It is the purpose of helping small and medium-sized merchants who are difficult with Corona 19.”

· Highly criticized for the monopoly of large platform companies worldwide. In the US House of Representatives last year, anti-monopoly hearings of Google, Facebook, Amazon and Apple were held. The Korean government has also stepped into legislation. The Fair Trade Commission created the’Online Platform Fairness Act’ last month, and is expected to be submitted to the National Assembly this month.
· Large platforms ‘We are small business partners’And emphasize the ecosystem. Facebook’s CEO Mark Zuckerberg, who stood in the antitrust controversy last year, argued that “regulating Facebook’s personalized advertising will hurt small businesses.”

Reporter Shim Seo-hyun [email protected]

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