Launched by one of the largest internet companies in South Korea, Daum Kakao, KakaoPay has successfully reached 5 million signups for its mobile payment platform. Launched in September 2014, KakaoPay allows only KakaoTalk users to pay for e-commerce products through KakaoTalk. The users can pre-register their credit and debit cards, and make transactions by typing in their passwords.
According to the company, one KakaoPay user made purchase of more than US$6,400 in a single transaction with 60% of the its users being females.
In an interview with VentureBeat, Joe Seunghyun Cho, Founder and Chairman of private investment group Marvelstone said, “Kakao is still dominant in South Korea and that Line is catching up but not as popular, and no one uses WeChat here. Initially, Kakao Pay wasn’t doing well, but Kakao was very aggressive in marketing to make it happen.”
“Online mobile payment is widely accepted in South Korea. FinTech as a technology is not a new thing [here], and everyone is used to it. I think Kakao Pay is targeting the right target group —young females. They are the ones spending the most online,” he added.
Apart from these the company has an affiliation with Shinhan Card, which represents one of the largest credit card companies in South Korea. The company has also released releasing KakaoTaxi, a cab-hailing service similar to Uber and is also planning to roll our other services.
Daum Kakao’s consolidated revenue for 2Q,2015 was KRW 226.5 billion with mobile-related businesses making up 52%. According to the company, the second half of 2015, Daum Kakao will continue to focus its resources on growing core businesses and services. KakaoPay is competing against other popular messaging apps like WeChat, Line, WhatsApp, etc. and is looking to diversify its services.
KakaoTalk is a free mobile Instant messaging application for smartphones with free text and free call features. It was launched on March 18, 2010 and is currently available on iOS, Android, Bada OS, BlackBerry, Windows Phone, Nokia Asha and Personal Computer. KakaoTalk currently has 140 million users and is available in 15 languages. The app is also used by 93% of smartphone owners in South Korea. For more information, click here.
About Daum Kakao:
Daum Kakao is a global mobile lifestyle platform company with services spanning messaging, mail, search, news, advertising, gaming, e-commerce, music, maps and more. Based in South Korea, Daum Kakao reaches consumers, businesses and others via its portfolio of popular platforms and services: KakaoTalk, KakaoGame, Daum Mail and Daum Cafe, among others. In line with the vision to “connect everything,” Daum Kakao plans to center its focus on creating an environment of real-time interconnectivity, thereby enriching lives and delivering value to consumers, businesses, partners and shareholders alike. Daum Kakao is committed to building new experiences by harnessing its successful 20-year legacy of innovation as an Internet and mobile services leader. For more information, click here.