Agreement Signed with 3 Major Simple Payment Companies and 9 Credit Card Firms
Payments Now Possible at 270,000 Small Business Stores in Seoul
Payment Fees Reduced from 1.8% to 1.0%
From now on, QR payments will be possible at Seoul Pay affiliated stores using not only Naver Pay and Kakao Pay but also all domestic credit card companies' applications (apps). This is expected to have an impact on revitalizing local commercial districts through the reduction of payment fees.
On the 26th, the Seoul Metropolitan Government announced that it will implement the "Seoul City Standard QR Domestic Payment Companies Opening" project starting in May to expand consumer benefits, increase sales for small business owners, and reduce the burden of payment fees. This service opens the Seoul City Standard QR code provided at Seoul Pay affiliated stores for use in domestic payment company apps and is part of the Small Business Support Project announced by Seoul City at the end of last year.
To this end, Seoul City signed a "Seoul City Standard QR Domestic Payment Companies Opening Business Agreement" on the same day with three domestic fintech (finance + technology) companies and nine domestic credit card companies. The agreement includes participation from leading domestic fintech companies such as Naver Pay, Kakao Pay, Viva Republica, and all nine domestic credit card companies: Lotte Card, BC Card, Samsung Card, Shinhan Card, Woori Card, Hana Card, Hyundai Card, KB Kookmin Card, and NH Nonghyup Card.
Benefits for small business owners are also notable. When paying using the Seoul City Standard QR code provided at small business affiliated stores through Naver Pay, Kakao Pay, or Toss apps, the payment fee will be reduced from the previous maximum of 1.8% to 1.0%. For example, if annual transactions worth 500 billion KRW occur at 270,000 small business affiliated stores located in Seoul, the payment fees will decrease from 9 billion KRW to 5 billion KRW, resulting in a savings of approximately 4 billion KRW.
Seoul City will support the overall administration, promotion, and expansion of affiliated stores for the standard QR opening project. Simple payment companies will reduce payment fees for affiliated stores and promote the service, while credit card companies will promote the activation of small business affiliated store usage. Seoul City plans to build a standard QR payment network with participating companies and will open the standard QR to overseas simple payment companies in the future.
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