[Click eStock] "HectoFinancial, Beneficiary of Electronic Financial Transactions Act Amendment"

ResearchAlum analyzed on the 23rd that HectoFinancial is expected to benefit from the enforcement of the amended Electronic Financial Transactions Act.

Researcher Seunghwan Lee of ResearchAlum explained, "According to the strengthened regulations of the amended Electronic Financial Transactions Act, which is set to be enforced on September 15, companies providing prepaid charging methods (points, mobile coupons, etc.) such as franchises and distributors must register as prepaid businesses."

He continued, "Merchants offering simple payment services must register as electronic payment gateway (PG) operators," adding, "A significant number of existing prepaid businesses will become subject to supervision by the Financial Supervisory Service." Furthermore, he stated, "It is possible to outsource to fintech companies that already hold prepaid and electronic payment gateway licenses," emphasizing, "With less than three months remaining, most prepaid businesses are expected to utilize agency companies rather than securing their own requirements."

Researcher Lee said, "Electronic payment gateway operations, like prepaid businesses, will increase the demand for settlement PG agency services," and analyzed, "HectoFinancial is the only company in Korea that can meet the demand for both prepaid and PG agency services." He added, "It holds a PG license and has the capability to handle a large volume of account traffic," explaining, "It is expected to benefit because it can fundamentally provide various payment methods such as cash payments, credit cards, and mobile phone payments."