[Exclusive] Baemin to Abolish 'Meet and Pay'... Accelerating Contactless Payment 강화

‘Mannaseo Payment’ Operates Until Next Month 29... Targets Baemin1 and BaeminRiders Stores
Surge in Contactless Payment Demand... “Many Riders Deliver Without Cash”
Reduces User Crime Exposure Risk... Impact on Yogiyo and Others ‘Noted’

[Image source=Yonhap News]

[Asia Economy Reporter Lee Junhyung] The delivery application (app) Baedal Minjok will terminate its direct payment method service, ‘Meet and Pay,’ next month. This is interpreted as a strategy to strengthen contactless payments amid the spread of COVID-19. The possibility of app users being exposed to crimes due to direct payments also appears to have influenced the decision. There are expectations that the discontinuation of direct payment services may spread to other delivery apps such as Yogiyo, starting with Baedal Minjok.

According to the delivery industry on the 25th, Woowa Brothers, the operator of Baedal Minjok, will operate the ‘Meet and Pay’ service for the single delivery service ‘Baemin1’ and Baemin Riders stores until the 29th of next month. ‘Meet and Pay’ is a payment method where the orderer meets the rider (delivery person) directly and pays by card or cash. From the end of this year, Baedal Minjok users will only be able to use the in-app payment method ‘Baro Payment’ service at Baemin1 and Baemin Riders stores. The ‘Meet and Pay’ service will continue to be provided in ‘Ultra Call,’ a fixed-rate advertising product costing 88,000 KRW per month where Baedal Minjok does not provide direct delivery service, and in ‘Open List,’ which charges a 6.8% commission on sales per transaction.

[Image source=Yonhap News]

The surge in demand for contactless payments triggered by COVID-19 is the background for the termination of the ‘Meet and Pay’ service. In fact, Woowa Brothers reportedly decided to discontinue the ‘Meet and Pay’ service to reduce the time customers and riders meet directly as the spread of COVID-19 did not subside. A Woowa Brothers official said, “Due to COVID-19, there have been many orders requesting to leave food at the door, so the usage proportion of the ‘Meet and Pay’ service is already not high,” adding, “The fact that many riders deliver without carrying cash is also related to this decision.”

Contactless payment services also have the effect of reducing the possibility of app users being exposed to crimes. Concerns about the potential for riders to commit crimes have been consistently raised. Riders can meet orderers face-to-face and easily obtain personal information such as addresses. In February, a rider belonging to Baemin Riders caused controversy by exposing himself to a female resident in an officetel elevator and fleeing. There are also concerns about card cloning. In September of this year, an incident occurred where a rider cloned an orderer’s card through the ‘Meet and Pay’ service and sold it on the internet.

There are also expectations that other delivery apps such as Yogiyo may follow suit and discontinue direct payment methods. As contactless payments have become the norm in various fields due to COVID-19, delivery apps are likely to reduce direct payment methods, according to industry explanations. A delivery industry official said, “The strategy of Baedal Minjok, the market leader, inevitably influences other delivery apps,” and added, “It is highly likely that other delivery apps are also considering various measures to strengthen contactless payment methods.”

There are also opinions that reducing payment options may cause consumer dissatisfaction. If the ‘Meet and Pay’ service disappears, it is pointed out that payment methods will be limited because local currency and corporate cards cannot be used. A Woowa Brothers official said, “Local currency and disaster relief funds have not been usable at Baemin1 and Baemin Riders stores for some time,” and added, “Corporate cards can also be used for payment if registered on a personal app.”