Collaboration with LinkAsia
Payroll Settlement Cycle Advanced by up to 56 Days
Card Use and Salary Withdrawal Possible the Day After Work
[Asia Economy Reporter Ki Ha-young] Shinhan Card is launching inclusive financial support for platform workers such as food delivery riders and Uber drivers. The core idea is to advance the wage settlement cycle so that income can be used immediately.
Shinhan Card announced on the 20th that it is promoting the development of a "card-based income advance settlement service" that advances the wage settlement cycle for platform workers and applied for a patent for this service in August.
The income advance settlement service advances the wage settlement cycle, which platform workers used to receive up to 56 days after providing labor, to a weekly or daily basis. Income can be settled as early as the next day, and the settled income can be used immediately with the card at all affiliated merchants like national disaster relief funds, and the balance can also be withdrawn to a bank account. Shinhan Card expects to reduce the time required for income settlement by up to about 80% compared to the existing process.
To provide this service, Shinhan Card decided to collaborate with Link Asia Management, a platform company that connects advertisers and individual platform workers, and held a strategic partnership agreement ceremony. The ceremony, held at Shinhan Card headquarters in Euljiro, Seoul, was attended by Moon Dong-kwon, Head of Shinhan Card’s Management Planning Group, and Jo Yoon-ho, CEO of Link Asia, among other officials.
Link Asia is a startup with an ad tech (technology-based advertising) platform that achieved annual sales of 2 billion KRW within two years of its founding, based on robotic process automation (RPA) technology that optimizes the activities and performance of platform workers.
The income advance settlement service is being led by Paydays, an in-house venture of Shinhan Card. Platform workers using the Link Asia platform will be able to apply for the income advance settlement service on the Link Asia website and accumulate income, which was previously settled monthly, as weekly credit card usable amounts.
In the future, the two companies plan to help platform workers receive additional benefits in credit card issuance or loan limits and interest rates through the accumulated income information from the income advance settlement service and Shinhan Card’s personal business credit evaluation (CB) service. Platform workers have faced difficulties in issuing credit cards and obtaining loans due to challenges in proving income.
Moon Dong-kwon, Head of Shinhan Card’s Management Planning Group, said, "The financial service platform for platform workers can promote business not only in financial inclusion supporting the gig economy but also in various innovative financial fields such as MyData and personal business credit evaluation. We will continuously strive to strengthen Shinhan Card’s competitiveness in connection with Shinhan Financial Group’s Neo Project and contribute to revitalizing the government’s New Deal policy."
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