NAVER Pay Used Like a Card: "NAVER Getting Prettier and Its Value Growing Rapidly"

[Asia Economy Reporter Lee Seon-ae] Target price upgrades for Naver (NAVER) continue. Starting in April, postpaid payments of up to 300,000 KRW per month will be possible via Naver Pay, increasing the stock's attractiveness.

According to the securities industry on the 20th, Hyundai Motor Securities maintained its 'Buy' rating and target price of 500,000 KRW for Naver. After raising the target price from 450,000 KRW to 500,000 KRW on the 15th, it maintained this level on the 19th and recommended Naver as the top internet stock.

Hyun-yong Kim, a researcher at Hyundai Motor Securities, explained, "The period from 2019 to 2020 was when Naver Pay greatly benefited from the rapid increase in Naver Shopping transaction volume. The full-scale expansion of Plus Membership in the second half of 2020 and the recent approval of credit payments via Naver Pay are expected to act as mechanisms that stimulate high growth in shopping transaction volume through financial service differentiation." He added, "The two-way synergy between shopping and finance is the key point that differentiates Naver most from competing online shopping companies."

On the 18th, the Financial Services Commission held the 1st Innovation Finance Review Committee and designated Naver Pay's small-amount postpaid payment as an innovative financial service. Accordingly, Naver Pay plans to operate postpaid payments in a way that allows users to purchase goods only with prepaid electronic payment means (Naver Pay Points) and repay the difference between the charged balance and payment amount later. The maximum limit per individual is 300,000 KRW, but the actual postpaid payment limit per individual is expected to vary based on an internal credit evaluation system using financial and non-financial information.

On the 19th, Ebest Investment & Securities maintained its 'Buy' rating for Naver and raised the target price by 10.9% from 460,000 KRW to 510,000 KRW, reflecting expectations for the postpaid payment approval.

Jong-hwa Sung of Ebest Investment & Securities said, "The approval of a 300,000 KRW postpaid payment limit for Naver Pay is the first case of tech-fin postpaid payment approval. Although the postpaid limit starts at 300,000 KRW per person per month, expansion is expected in the future." He evaluated, "The approval of the credit (postpaid) function, which was the only weakness, has given wings to policies expanding the proportion of remittance and transfer payment methods."

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