Gyeongnam Public Zero Pay Plays a Role in Revitalizing Local Economy Amid COVID-19 Recession

Public Zero Pay Launched in February, Over 9,100 Transactions and 2.08 Billion KRW Used by End of August
Instant On-Site Payment Within 2-3 Days, No Merchant Fees, Great Support for Store Operations

Paying with Zero Pay at a store in Gyeongnam Province. (Photo by Gyeongnam Province)

[Asia Economy Yeongnam Reporting Headquarters Reporter Kang Sharon] As of the end of August, the usage of 'Gonggong Zero Pay,' which Gyeongsangnam-do introduced nationwide for the first time last February, reached about 9,100 transactions and 2.1 billion KRW, proving to be a great help in increasing sales for small business owners and revitalizing the local commercial district.

'Gonggong Zero Pay,' participated in by the province, cities and counties, and invested and funded institutions, is a method that changes payments such as business promotion expenses, office management expenses, and event reimbursement from the previously used bank credit cards to QR code mobile simple payment services.

When payments are made with 'Gonggong Zero Pay' at small business franchise stores with annual sales under 800 million KRW, the fee of less than 1% that small business owners bore with credit card payments disappears to 0%, and unlike the previous method where payments were deposited 2 to 3 days later, the payment is deposited directly to the franchise store on-site, greatly improving the difficulties faced by small business owners.

The number of Zero Pay franchise stores, which was 36,773 at the time of launch in February this year, expanded to 85,625 by the end of August. The usage amount was about 5,400 transactions and 1.3 billion KRW for the province, and since its introduction in April, about 3,700 transactions and 780 million KRW for cities and counties.

A restaurant owner near the provincial office said, "The amount used with Gonggong Zero Pay increased by more than 130% compared to the same month last year. Zero Pay brings money faster than credit card payments, and it seems that the monthly basic card franchise fee of 300,000 KRW is also saved," expressing that the expansion of public service support is helping with store operations. He added, "Since these are difficult times, I hope the role of the public sector will be further expanded."

Lee Sam-hee, Director of the Provincial Autonomous Administration Bureau, said, "With the social distancing level raised to level 2 due to the resurgence of COVID-19, small business owners are struggling. The province will do its best to overcome this difficult time together."