NHN KCP Enters Prepaid Business... Accelerates Long-term Business Development

Registration for Prepaid Electronic Payment Instrument Issuers
Allows Gift Certificate Issuance and Prepaid Pay Business

Payment service provider NHN KCP has obtained a prepaid business license and is expanding its points and gift certificate business.

NHN KCP announced on the 20th that it has completed the registration for the issuance of prepaid electronic payment instruments (prepaid business).

Prepaid electronic payment instruments are systems that allow payments at merchants using gift certificates or points issued by the company. Registering for the prepaid business enables the issuance of gift certificates and the operation of prepaid pay services.

In September, an amendment to the Electronic Financial Transactions Act was announced, which includes the registration of prepaid businesses and strengthened management and supervision. Companies issuing e-coupons must secure a prepaid business license or entrust agency services to licensed companies. To obtain the license, certain requirements such as capital scale, safety, and protection measures must be met. NHN KCP proactively prepared the necessary requirements and received final registration approval from the Financial Services Commission.

The average daily usage amount of prepaid electronic payment instrument services has been steadily increasing, from 801.7 billion KRW in the first half of 2022 to 1.152 trillion KRW in the first half of this year. As the transition to a wallet-less society accelerates worldwide, NHN KCP plans to expand business synergy with merchants through this prepaid business license registration.

An NHN KCP official stated, "Due to the amendment issue of the Electronic Financial Transactions Act, inquiries about prepaid fund management agency services have been continuously coming in even before obtaining the prepaid license," adding, "With the acquisition of the prepaid business license, we can now provide customers with safer and more reliable electronic financial services."