[Click eStock] "Naver, First Credit Card for Generation Z... Shopping Transaction Volume Expected to Surge"

[Asia Economy Reporter Ji Yeon-jin] Hyundai Motor Securities announced on the 19th that it expects a surge in shopping transaction volume as the Financial Services Commission decided to allow the postpaid payment service of Naver Pay, the payment system of Naver (NAVER).

At a regular meeting the day before, the Financial Services Commission decided to permit Naver Financial to offer postpaid payment services. Based on its own credit evaluation system that combines existing credit rating agency data with Smart Store data, consumers will be able to make credit payments (deferred purchases) through Naver Pay when purchasing products on the Naver platform. Kakao Pay and Toss have also expressed intentions to enter the postpaid payment market, and as big tech companies begin to actively enter the credit payment market, Naver plans to take the lead by introducing the service in April.

The monthly limit of 300,000 KRW is about 2.5 times the average purchase amount per Naver Shopping customer, which is considered sufficient for an increase in shopping transaction volume. In particular, it is expected that shopping transaction volume and credit payment amounts will increase together, centered on groups such as Generation Z and full-time housewives, who have limited access to credit payments but high shopping needs. Based on this year's estimated shopping transaction volume of approximately 35 trillion KRW, assuming a 30% credit conversion rate, it is possible to achieve a meaningful market entry with credit payment amounts exceeding 10 trillion KRW.

Naver's financial business, through Naver Financial's domestic operations, has expanded from simple payments and loans to include credit cards. This maximizes the synergy between shopping and finance, such as Naver Pay, loans for Smart Store sellers, and credit payment support for Naver Shopping buyers, while also expecting to 'lock in' both buyers and sellers.

In the case of Japan's Rakuten, the proportion of Rakuten Card payments among Rakuten Ichiba's shopping transaction volume is approaching 65%, and Naver is also expected to see a significant increase in the proportion of credit payments in the mid to long term. Hyundai Motor Securities analyst Kim Hyun-yong said, "If Naver Pay benefited from the rapid growth of Naver Shopping transaction volume since 2019, the full-scale expansion of Plus Membership in the second half of last year and the recent approval of Naver Pay credit payments will serve as a catalyst for differentiated financial services to stimulate high growth in shopping transaction volume," adding, "The two-way synergy between shopping and finance is the most distinguishing point of Naver compared to competing online shopping companies, and I recommend it as the top preferred internet stock."

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