NAVER Financial’s Cumulative Fast Payout Reaches USD 8 Billion
NAVER Financial’s Cumulative Fast Payout Reaches USD 8 Billion
NAVER Financial’s Cumulative Fast Payout Reaches USD 8 Billion
- NAVER Financial significantly shortens the payout cycle from the standard 10-60 days to 3-5 days after order placement
- Fast payout is an essential service for business growth with 77% of users being SMEs and 42% being early-stage businesses started after 2020
- NAVER Financial contributes to growth of fast payout service in the platform industry, and expects more business success stories as a result
2022-05-16
NAVER Financial, a subsidiary of NAVER Corp. (KRX: 035420), announced that the cumulative amount of fast payouts distributed to small-and medium-sized enterprises (SMEs) has exceeded KRW 10 trillion (USD 8 billion). For 16 months since the fast payout service launched, the funds have supported the growth of SMEs and primed the pump for business success.
The fast payout service offers support to businesses by shortening the payout cycle, which normally takes 10 to 60 days after orders are placed, to three to five days without collateral or fees. As NAVER Financial has repeatedly improved its fast payout service, the adoption of shorter payout cycles has been hailed as a mutual growth strategy in the platform industry. By making the payout cycle quicker twice last year, NAVER Financial became the world’s first company to offer Smart Store sellers a fast payout only three days after order placement, which is the day after orders are collected by a courier, since December 2021.
SMEs are using the fast payout service most frequently among Smart Store sellers, proving the service to be an essential support for business growth. According to NAVER Financial, of the accumulated KRW 10 trillion distributed through fast payout by April, KRW 7 trillion went to SMEs. As of April 2022, about 77% of sellers using the service were SMEs, and 50% of amount paid to SMEs is processed through the fast payout service.
Among the total users of the fast payout service, new businesses that started after 2020 account for 42%, due to the simple application requirements of the service. If the number of orders is more than 20 per month and the return rate is less than 20% for three consecutive months, SMEs are eligible to get the benefits of fast payout if they can maintain more than 10 orders per month afterwards.
In fact, sellers are also experiencing the positive effects of fast payout service when operating their businesses. According to a survey on the benefits of the fast payout conducted by NAVER Financial, 94% chose improvement of cash flow, followed by improvement of operational efficiency (40%), and contribution to business growth (33.5%).
NAVER Financial plans to expand its service to support more SMEs. The fast payout service, which is currently only available for Smart Store sellers, will be available to any online shopping sites that have applied for NAVER Pay on-demand merchants this year.
“Since the launch of NAVER Financial’s fast payout service, there has been a growing movement in the platform industry to shorten the payout cycle for SMEs. In addition to fast payout service, we expect the number of successful business cases to increase steadily, using NAVER Financial’s various business support services, such as the Smart Store Business Loan and the recently launched Return Safety Care shipment insurance,” said Park Sang-jin, NAVER Financial CEO.
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