"Get Card and Delivery Sales Paid the Next Day" EarlyPay Helps Small Business Owners with Advance Payments

Interview with Jang Hwansung, CEO of EarlyPay
Solving Cash Liquidity for Small Business Owners
Partnering with Gyeongnam Bank
Sales Settlement Amount Deposited the Next Day

EarlyPay participated in the '2022 Science Startup Show' held at the Daejeon Convention Center last September.

"It was difficult because cash couldn't circulate and the settlement process was complicated, but now I feel relieved. Regardless of holidays or public holidays, the sales amount is deposited the next day, which is convenient."

Mr. Lee, who runs a gopchang restaurant in Bucheon, Gyeonggi Province, greatly reduced his worries after using 'EarlyPay,' which shortened the sales settlement cycle to one day. Until then, he struggled with managing sales as various card sales and delivery application settlements were tangled. Especially during long holidays like traditional holidays, the delivery settlement amount was deposited up to two weeks later, causing cash flow issues. There were many expenses to pay, such as labor costs, utilities, ingredients, and rent, but the money was tied up, causing constant concern. Now, by paying only a 2,000 KRW daily usage fee, he solved his difficulties with EarlyPay’s advance settlement service, which deposits the previous day's card and delivery sales into the account the next day.

Jang Hwan-seong, CEO of EarlyPay (pictured), said in an interview with Asia Economy, "Most self-employed business owners don't even know if their card and delivery settlement amounts are properly deposited," adding, "Funds need to circulate, but because settlements are not immediate, there are times when funds are insufficient." Before starting his business, he worked at a P2P company specializing in self-employment and a tax and labor consulting firm, meeting self-employed people nationwide. "From the field, I saw that the owners were actually the 'subordinate.' They were pressured by customers, suppliers, and employees. I even saw owners suffering from heart disease due to the hard work."

He pondered how to improve the self-employment ecosystem by his own efforts. Observing self-employed people closely, he found that regardless of sales, industry, or region, the most important factor in business operation was 'cash flow.' Due to slow cash liquidity, some could not order ingredients even though they wanted to sell food, or had to take high-interest loans. He judged that properly solving this problem would receive great response.

He established a corporation in April last year and partnered with BNK Gyeongnam Bank, then launched the EarlyPay service in December of the same year. Word of mouth spread among franchise owners, steadily increasing users. A one-month free trial service is offered, with a conversion rate to official customers exceeding 95%. Partnering with Hanwha General Insurance, they created an exclusive insurance product for EarlyPay users to increase additional benefits. CEO Jang said, "So far, about 20 billion KRW in advance settlements have been executed without a single default," and added, "We expect to surpass 1,000 affiliated stores by the first half of next year."

The principle behind how the EarlyPay service works is as follows. First, user accounts that can view sales data from cards and deliveries are linked to collect and process data. This provides users with a report format that allows them to check sales details at a glance, and deposits the previous day's sales amount by 1 PM the next day. CEO Jang said, "At first, I thought the main customers were delivery app store owners, but I realized that anywhere with card terminals, such as academies, beauty salons, and car washes, needs EarlyPay." However, usage is restricted for businesses with high cash liquidity and high average spending per customer, such as entertainment bars, secondhand luxury shops, and gift certificate shops.

CEO Jang takes pride in EarlyPay as a service that helps, not burdens, small business owners. He said, "Some people question whether EarlyPay increases the fee burden on small business owners, but the owners who actually use it support us, saying 'Please keep the service going for a long time.'" He added, "Our ultimate goal is not just to be a financial company that gives money in advance, but to innovate supply chain finance centered on small business owners," and said, "We are steadily progressing plans to incorporate various services such as ingredient wholesale into the EarlyPay platform."