No Use at All: 'Zero Pay' Only Convenience Stores Are Excited

Government Emergency Living Expense Support
10% More Support Than Prepaid Cards
Over Half Choose Seoul Love Gift Certificates

Not Usable at Large Marts or Department Stores
Many Usage Restrictions and Complex Payment Methods
Increased Use of Convenient Stores with Flexible Payment Options

[Asia Economy Reporter Lim Hye-seon] To support citizens whose income has decreased due to the novel coronavirus infection (COVID-19), the government has been providing emergency disaster relief funds since the 1st of this month. As Seoul City distributes the emergency disaster relief funds through Seoul Love Gift Certificates, the use of Zero Pay, a simple payment method that can be used with these certificates, has surged. Consequently, more people are visiting convenience stores where Zero Pay is accepted.

According to the convenience store industry on the 27th, CU, a convenience store operated by BGF Retail, saw Zero Pay usage increase sixfold from the same period last month between the 1st and 26th. During the same period, GS25 of GS Retail and Seven Eleven of Korea Seven also increased by 533% and 319%, respectively, compared to the previous month.

The surge in Zero Pay usage at convenience stores is due to the government's emergency disaster relief funds. Since the 1st, Seoul City has allowed recipients to choose between a prepaid card and Seoul Love Gift Certificates for receiving the relief funds. Those who choose Seoul Love Gift Certificates receive an additional 10% in support funds. Because of this, half of the citizens opted for Seoul Love Gift Certificates. By the 16th, Seoul City had distributed 38.896 billion KRW to 106,743 households. Citizens received Seoul Love Gift Certificates worth 2.217072 billion KRW. The city encouraged the use of Seoul Love Gift Certificates through Zero Pay.

Zero Pay is a mobile simple payment service using a joint QR code system introduced through cooperation among the government, Seoul City, local governments, and financial institutions to reduce franchise fee burdens on small business owners. However, the frequency of Zero Pay usage is still low, limiting the areas and places where it can be used. Additionally, the payment method is complex, and it is known that many stores request other payment methods. If a Zero Pay account is linked, payments can be made even at large supermarkets, but Seoul Love Gift Certificates cannot be used at large supermarkets or department stores. They can be freely used at convenience stores, so citizens mainly use their emergency disaster relief funds at convenience stores.

Lee Soo-kyung (46, pseudonym), living in Gangnam, Seoul, said, "I received the relief funds as Seoul Love Gift Certificates because I could get 10% more, but there aren't many places to use them." She added, "I couldn't use them at large supermarkets and felt reluctant to use them at restaurants, so I bought ramen at a convenience store."

The items mainly purchased with Zero Pay are ready-to-eat meals and bagged noodles (ramen). A CU representative explained, "Purchases of ready-to-eat foods such as lunch boxes, kimbap, sandwiches, processed meat products, and refrigerated ready meals are high," adding, "Compared to general purchases, the average spending per transaction using Zero Pay this month is about twice as high." The average spending per transaction for general purchases is about 2,500 KRW. A GS25 representative also said, "Bagged noodles, cup noodles, and refrigerated/frozen ready meals are mainly purchased."

This content was produced with the assistance of AI translation services.