Input 2021.02.22 06:00
The Financial Services Commission held a regular meeting on the 18th and designated Naver Financial’s small deferred payment as a new innovative financial service. This is the first case related to’allowing a small deferred payment service through a platform’ announced at the Digital Finance Council on the 9th.
Naver Financial will start the deferred payment service from April. If a consumer pays with Naver Pay points, even if the remaining balance is insufficient, it will be possible to pay in credit for up to 300,000 won per month. Naver Financial plans to set different payment limits for each user by using an alternative credit rating system (ACSS) that combines financial information and non-financial information held by Naver.
Other fintech companies are also expanding their services. Kakao Pay is known to be discussing a plan to apply deferred payment service to mobile transportation cards. An official at Kakao Pay said, “We are preparing to apply for innovative financial services,” and said, “Service within the first half is the goal.”
The financial authorities plan to actively support the small deferred payment service through the platform. Through this, it is expected that’new filers’ who lack financial history, such as newcomers and housewives, will benefit. The number of new filers in Korea is estimated to be about 13 million.
An official from the Financial Services Commission said, “Naver Financial is the first case, and several additional companies are preparing,” and said, “I have a lot of inquiries recently.”
“Will the deferred payment amount increase?” Card company
The card industry is wary of the expansion of fintech services. This is because it can threaten the business areas occupied by credit card companies. In addition, unlike card companies that are subject to various regulations, fintech companies are loosely regulated, resulting in increased complaints.
An official in the card industry said, “Because the market is limited, competition inevitably intensifies,” and said, “I am concerned that simple payment companies can manage risk well.
Industry attention is focused on payment limits. Currently, the limit for small deferred payment services is up to 300,000 won, but the financial authorities are open to the possibility of an increase. The fintech industry also insists that the limit should be raised to 1 million won, like the postpaid payment service of telecommunications companies. Accordingly, the card industry points out that soundness regulation is necessary.
Seong-won Jang, Secretary General of the Fintech Industry Association, said at a discussion meeting on the 18th, “In a situation where mobile phone payments are also allowed up to 1 million won, it is necessary to increase the limit for simple payment post-payment services. Rather, it should be applied according to user convenience.”
On the other hand, Jung Joong-ho, head of the Hana Financial Management Research Institute, said on the same day, “There is a high possibility that payment finance will grow rapidly and the amount of deferred payment will increase rapidly.” .
An official from the Financial Services Commission said, “The current limit is set at 300,000 won, but we will examine whether the amount is raised by looking at the trend in the future.”
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