[Click eStock] "Danal, the Biggest Beneficiary of Untact Payment"

[Asia Economy Reporter Hyunseok Yoo] KTB Investment & Securities analyzed Danal on the 1st as the biggest beneficiary of untact (non-face-to-face) payment. No investment opinion or target price was provided.

Danal is the only comprehensive PG company in Korea covering mobile phone payments, credit cards, virtual currencies, and simple payments. Jaeyoon Kim, a researcher at KTB Investment & Securities, said, "The increase in untact consumption due to the implementation of social distancing level 2.5 is leading to an increase in the company's transaction volume," adding, "Also, as the mobile phone payment PG company within Kakao Games, it is expected to emerge as a beneficiary of Kakao Games' listing."

He explained, "Danal is the only comprehensive PG company in Korea that has entered mobile phone payments, credit cards, virtual currencies, and simple payments, and the total payment amount is continuously increasing due to the rise in untact consumption," adding, "In fact, the Q2 performance, which first reflected the impact of the novel coronavirus disease (COVID-19), achieved sales of 57.1 billion KRW, showing significant growth." He continued, "In the case of mobile phone payments, it is used as an alternative for groups that find it difficult to use cards and simple payments, recording a steep increase in payment amounts within delivery apps such as Baedal Minjok and Coupang. The monthly payment amount of Baedal Minjok in August is estimated to have increased by more than 25% compared to January."

Danal is the mobile phone payment PG company for Kakao Games, which is scheduled to be listed in September. Since 2015, Danal has been responsible for Kakao Games' mobile phone payment PG, and after the listing, it is expected to emerge as a beneficiary of the increase in in-game payment amounts due to Kakao Games' growth, according to researcher Kim. He also expected that the exclusive Samsung Pay mobile phone payment PG business will be reflected in performance in earnest from the second half of this year as the number of affiliated stores expands.

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