Danal Reports Q1 Sales of 56.6 Billion KRW and Operating Profit of 2.3 Billion KRW

Danal, a company specializing in integrated payment business, announced on May 15 that it recorded consolidated sales of 56.6 billion KRW and operating profit of 2.3 billion KRW in the first quarter of this year.

Due to the slowdown in the domestic economy, sales decreased compared to the same period last year. However, the reduction in bad debt expenses through its proprietary credit evaluation model 'NDS' and the strategic shift to focusing on high-profit merchants proved effective, resulting in increased sales and a return to operating profit compared to the previous quarter.

Danal has been steadily attracting large-scale merchants based on its stable financial structure and systematic risk management capabilities. The company expects that ongoing efforts to improve cost efficiency and revenue structure will enable mid- to long-term performance improvement.

The newly launched prepaid business is expected to become a key driver for strengthening performance. Danal recently introduced 'White Labeling,' a prepaid issuance and management support service, and has officially entered a market valued at an average of 1.2 trillion KRW per day. The company is currently developing dedicated solutions for partner companies and, by providing payment services utilizing the BC Card infrastructure, anticipates rapid market expansion.

The new business targeting foreigners is also expected to become a growth engine. Danal plans to launch a 'foreigner-specialized prepaid card' for the approximately 16 million annual foreign visitors to Korea and 2.6 million foreign residents. The company is establishing infrastructure to enable easy issuance at major commercial districts and educational facilities such as universities, and is preparing a payment environment that can be used nationwide.

In addition, the 'foreign student tuition payment' service, which is currently experiencing stable external growth, is expected to see a rapid increase in transaction volume and the number of partner universities, as its coverage expands to include Vietnamese students?the second largest group of international students in Korea after those from China, the United States, and Europe.

A Danal representative stated, "In addition to the stable growth of our existing payment services, we expect to see visible performance growth this year driven by new businesses that will be fully launched in the second half," and added, "We will continue to drive innovation and growth by introducing inclusive financial solutions for small business owners and thin filers, and by pursuing a license for the fourth internet-only bank."

Danal, as a leading company in the virtual asset payment sector, is rapidly expanding its service areas both domestically and internationally. The Paycoin app payment service, the only virtual asset real-world payment service in Korea, continues to see steady growth in transaction volume as the number of affiliated merchants increases. Based on its patents, Danal plans to actively collaborate with overseas stablecoin projects to expand its payment network. In the overseas market, its affiliate Payprotocol AG is leading the establishment of a global virtual asset payment ecosystem through the 'Paycoin Crypto Mastercard,' which can be used anywhere in the world.