KakaoPay Forms QR Ecosystem Alliance with VAN and POS Companies to Ease Burden on Small Businesses

Expanding QR Order Over Terminal Business
"Kakao and Affiliates Join the Initiative"

KakaoPay has formed an alliance with VAN (Value Added Network) and POS (Point of Sale) companies to expand the QR code-based table order (QR order) ecosystem and support small business owners. The company determined that supporting cost reduction for small businesses through the spread of QR order is more effective than running its own terminal business.

Executives from each company participating in the alliance agreement ceremony to support the expansion of small business franchise stores' 'QR code-based table order (QR order)' and marketing for securing regular customers, held on the 1st at the KakaoPay office in Pangyo, Gyeonggi-do, are taking a commemorative photo. From the left: Wongeun Shin, CEO of KakaoPay; Junyeon Hwang, Performance Leader of Kakao; Jinsun Park, Head of Korea Information and Communication Division; Seunghyun Kim, CEO of Nice Information and Communication; Yongsu Cho, CEO of KIS Information and Communication; Jeongyun Kim, CEO of OKPOS; Jongyun Kim, CEO of Beaverworks; Byungsam Na, CEO of UnionSoft. KakaoPay

KakaoPay announced on July 2 that it had signed an alliance agreement on July 1 at the KakaoPay office in Pangyo, Gyeonggi-do, together with KIS Information and Communication, Nice Information and Communication, Beaverworks, OKPOS, UnionSoft, Korea Information and Communication, and Kakao.

After the agreement, KakaoPay plans to work with these companies to promote the expansion of QR order at small business franchise stores and to support marketing activities for securing regular customers.

The signing ceremony was attended by Wongeun Shin, CEO of KakaoPay; Yongsu Cho, CEO of KIS Information and Communication; Seunghyun Kim, CEO of Nice Information and Communication; Jongyun Kim, CEO of Beaverworks; Jeongyun Kim, CEO of OKPOS; Byungsam Na, CEO of UnionSoft; Jinsun Park, Head of Korea Information and Communication Division; and Junyeon Hwang, Performance Leader of Kakao. Other Kakao group companies, such as Kakao Mobility and KakaoBank, have also agreed to join the alliance in the future.

KakaoPay plans to support VAN-based payment systems to reduce the cost burden on franchise stores. By applying the same commission rates as general offline store payments, the company will lower the cost burden for stores wishing to introduce table order systems.

As long as there is a sticker with a QR code and a customer’s smartphone, payment can be completed. For franchise stores, this eliminates the need to purchase or rent tablets to install on tables. KakaoPay explained that the usage fee for the QR order system is more than 50% lower than that of tablet order systems.

Franchise stores can choose the payment method that best suits their operations: either a prepaid option where both ordering and payment are completed at the table, or a postpaid option where payment is made at the counter after the meal.

KakaoPay will provide alliance partners with QR order stickers featuring the Kakao Friends character Chunsik, as well as in-store posters, free of charge. Thereafter, partner companies will apply their own solutions to QR order and provide maintenance support to ensure smooth ordering and payment in stores.

Consumers will be able to place orders and more using familiar screens set up on their smartphones. Payment can be made not only via KakaoPay but also with other methods, such as credit cards.

KakaoPay, together with Kakao, also plans to support marketing activities to help small businesses attract regular customers. Until the end of the year, Kakao will provide up to 250,000 KRW in message sending costs to stores that open a KakaoTalk channel through the KakaoPay business solution ‘Sajangnim Plus.’

KakaoPay will send messages to customers on behalf of franchise stores, considering that it takes time for stores to gather friends even after opening a KakaoTalk channel. In addition, coupons will be displayed on the ‘Local Store Benefits’ board within the KakaoPay payment tab to encourage users nearby to visit the store. Coupons can be created using the Sajangnim Plus app.

CEO Shin said, “Through the spread of QR order, we expect to improve the efficiency of the entire customer service process, from menu provision to order receipt and delivery, and payment, as well as to achieve cost reductions such as labor costs. Going forward, we will continue to work with all alliance partners to find various ways to support small businesses and build a mutually beneficial payment ecosystem for everyone.”