Transaction Volume in the Past Year Grows 1000% Compared to Launch Year
[Asia Economy Reporter Kim Cheol-hyun] Bungaejangter (CEO Lee Jae-hoo) announced on the 12th that its proprietary secure payment service, 'BungaePay,' has surpassed a cumulative transaction amount of approximately 900 billion KRW four years after its launch.
According to Bungaejangter, the transaction volume of BungaePay over the past year grew 1000% compared to its first year of launch. The annual transaction volume has more than doubled every year since the service was launched in April 2018, with last year's transaction volume reaching 300 billion KRW. The transaction volume in the first quarter of this year also continued its growth trend, recording approximately 93 billion KRW, a 72% increase compared to the same period last year.
BungaePay is a secure payment service where the amount paid by the buyer is held by Bungaejangter and then settled to the seller once the buyer confirms the purchase. This method allows transactions to be conducted safely and conveniently without concerns about non-shipment or exposure of bank account numbers, effectively preventing various disputes that may arise in peer-to-peer transactions. In addition to credit and debit cards, simple payment methods such as KakaoPay and Toss have been introduced to diversify payment options. As a result, last year, 5 out of 10 buyers on Bungaejangter had experience using BungaePay, and the reuse rate reached 60%.
Looking at the usage rate of BungaePay by product price range, the use of BungaePay increased as the amount grew. While the usage rate of BungaePay was below 10% for transactions under 10,000 KRW, it reached approximately 76% for transactions in the 1 million to 3 million KRW range.
The category with the highest volume of BungaePay transactions was the digital and electronics category, accounting for 25% of the total last year, followed by ▲clothing ▲sports and leisure ▲footwear in order of high transaction volume. It is analyzed that as the secondhand market grows and transactions of high-priced brand products increase, the secure payment service BungaePay is also growing alongside.
Gong Yu-hyun, Head of Platform Business at Bungaejangter, said, "Through continuous advancement of the BungaePay service over the past four years, we have created a safe transaction environment and worked hard for industry innovation, resulting in BungaePay's cumulative transaction amount approaching 1 trillion KRW." He added, "As the secondhand market grows and evolves into preference-based trading, it is expected that creating a highly trustworthy transaction environment will become even more important."
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