Users of 'Danggeun Market' Increased Sixfold Without Cash

Carrot Market Simple Payment Shows High Growth
Payment Feature Also Available at Local Stores... Expected to Strengthen Profitability

Carrot Market's simple payment service, 'Carrot Pay,' is experiencing rapid growth. Instead of the hassle of carrying cash separately or transferring money to accounts on the spot during secondhand transactions through Carrot Market, more people are using Carrot Pay. Carrot Pay can be used not only for remittances but also for payments at local stores, which is expected to contribute to strengthening Carrot Market's profitability in the future. Additionally, with Carrot Market's cumulative number of users reaching 30 million, it is anticipated that Carrot Pay will have a significant impact on the simple payment market once it is firmly established.

According to Carrot Market on the 27th, the number of Carrot Pay subscribers increased sixfold compared to the end of February, when the service was first launched. The number of remittance transactions also increased 17 times. These figures compare data from February 28, two weeks after the nationwide service launch, and June 30 of last month. Considering that users surged due to aggressive marketing in the first one to two weeks of the nationwide service launch, Carrot Market explains that this represents meaningful growth. Given that Carrot Market has 18 million monthly users and that over 10% of secondhand transactions during the three-month pilot service before the official launch of Carrot Pay were conducted using Carrot Pay, it is estimated that the number of Carrot Pay users already exceeds 2 million.

Carrot Pay is a region-based simple payment service that has been available nationwide since mid-February. It has two main functions: remittance and payment, with users currently mainly using the remittance function in secondhand transaction situations. This is because real-time remittance is possible within Carrot Market's chat window without the need to use separate banking or remittance apps. Sellers can also immediately confirm whether the payment has been received on the same screen. This means that during secondhand transactions through Carrot Market, users no longer need to prepare cash or exchange personal information such as account numbers or account holder names on the street between transaction parties. Carrot Market implements a 100% free remittance fee policy for secondhand transaction remittances and plans to maintain this policy going forward.

As the number of Carrot Pay users increases, Carrot Market is also placing expectations on the payment function. They have enabled payments at local stores and lifestyle-related services through Carrot Pay and are currently focusing on expanding the places where it can be used and its range of applications. Since fees and commissions occur through the payment function, the industry expects that its activation will contribute to improving Carrot Market's profitability. This service is one of the keys to Carrot Market's business model, which had been running at a loss due to the lack of significant revenue models other than online advertising.

The increase in Carrot Pay users could also affect the landscape of the domestic simple payment market. According to Hana Financial Management Research Institute, the size of the domestic simple payment market has grown at an average annual rate of 57% since 2016, reaching 221 trillion won last year, accounting for more than 20% of the domestic private payment market. Among these, big tech companies such as Kakao and Naver hold nearly half of the market share based on their massive user bases. It is analyzed that if Carrot Market's simple payment service, which has a considerable number of users, establishes itself, it could emerge as a major player in the market. A Carrot Market official said, "Carrot Pay is expected to play a significant role as an essential financial service for revitalizing the local economy by enhancing user convenience and connecting neighbors more closely."