NAVER to Expedite Fast Payout Schedule for Sellers, Payment Released Within 3.3 Days of Order Placement
NAVER to Expedite Fast Payout Schedule for Sellers, Payment Released Within 3.3 Days of Order Placement
NAVER to Expedite Fast Payout Schedule for Sellers, Payment Released Within 3.3 Days of Order Placement
- NAVER’s Smart Store sellers to receive fast payouts only 3.3days after orders are placed, 6 days faster than the standard payout option
- Cumulative fast payout for Smart Store sellers projected to reach KRW 5 trillion, as seller satisfaction and business stability increases
- NAVER Financial will continue to focus on pioneering the data-driven financial market for SMEs through collaborations with data, technology, and finance companies.
2021-09-14
NAVER(035420) will expedite its fast payout schedule for sellers to the day after orders are collected by a courier. The cumulative payout amount for Smart Store sellers this month is projected to reach KRW 5 trillion, accelerating seller capital turnover and leading to greater business stability and satisfaction.
NAVER Financial announced it will bring its fast payout terms forward, from the day after delivery is completed to the day after orders are collected by courier, which will be implemented in December. The current average for NAVER’s fast payout option is 4.4 days after order placement and will be reduced further to 3.3 days. NAVER’s standard payout service—where payment is released to sellers the day after order verification by customers to confirm they have received their order—remains the fastest in the Korean e-commerce industry at an average of 9.4 days.
The fast payout service is considered one of the most satisfying services amongst NAVER’S various seller programs. Since fast payout was introduced by NAVER Financial in November last year, it has generated KRW 1 trillion in accumulated payments in March, and KRW 3 trillion in June, and is rapidly rising to reach an estimated KRW 5 trillion in September.
The "Order Collected by Courier” status indicates that the seller has handed the order over to the courier, which means it is being delivered. NAVER Financial is the world’s first company to provide an interest-free payout service based on collected orders, unlike early payout schemes which use the sellers’ trade receivables as collateral and accrues interest on a daily basis.
Conditions for sellers to be eligible for fast payout will also be eased, and more small and medium-sized enterprises (SME) are expected to take advantage of these benefits. NAVER Financial plans to allow more Smart Store sellers to use the fast payout service by changing seller performance requirements from a minimum of KRW 1 million in transactions to at least 20 transactions per month for three consecutive months. Previously, individual sellers were not entitled to fast payout services if they currently have or had overdue loans. However, if their Smart Store sales are consistent and they are able to maintain steady transaction records, they will be allowed to apply for fast payout from December onwards regardless of their financial records.
NAVER Financial has also established a system—modeled on Fraud Detection Systems (FDS) that detect fraudulent or abnormal transactions using big data—which executes payouts once orders are collected by courier, irrespective of whether the seller has no accounts receivable collateral or possesses any overdue loans. NAVER Financial is continuing to improve fast payouts through FDS advancements, such as reducing the payout time from two days after delivery to the day after delivery in January and expanding the application from 90% to 100% of the payout amount in April.
"Since the introduction of Project Flower*, Naver has been ramping up its technical and policy support for SMEs to become more competitive and accelerate the growth of their Smart Stores. NAVER Financial, a subsidiary of NAVER Corporation, will focus on pioneering the data finance market for SMEs based on collaborations with data, technology, and finance companies," said Seong-sook Han, CEO of NAVER.
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*Project Flower is NAVER’s long-term project that provides meaningful platform services, discovery and promotion for content creators and SMEs to foster the growth and success of their businesses. Find out more at: navercorp.com/en/value/projectFlower