Shinhan Card Cuts Platform Workers' Payroll Settlement by Up to 55 Days

Shinhan Card In-House Venture Leads Innovation Model, Launches Income Pre-Settlement Service
Advances Income Settlement Cycle by Up to 80% for Early Payment

[Asia Economy Reporter Ki Ha-young] Shinhan Card announced on the 5th that it has launched a "card-based income advance service" that accelerates the income settlement cycle for 'platform workers' such as food delivery riders and daily cleaning workers.

Shinhan Card is focusing on the innovation of this business model, which provides income advance systems and services to multiple platform companies led by external financial firms, and is currently applying for a patent.

The core of this service is to advance the income settlement cycle of platform workers by up to 14 to 55 days, or about 80%, compared to the existing system. By applying the existing credit card merchant payment settlement process, the income settlement cycle for platform workers can be adjusted to weekly or even daily intervals. Currently, platform workers receive their wages up to 56 days after work, but with this service, settlement can be made as early as the next day.

When platform workers visit the platform homepage and apply for the "income advance service," they can receive their income settlements faster on a weekly or daily basis. The settled income can be withdrawn to a bank account by accessing the Shinhan Card homepage or the Paydays homepage. Shinhan Card plans to upgrade the system by May to allow the settled income to be used immediately at all affiliated merchants via the card, similar to national disaster relief funds.

Additionally, platform workers can organize and check their scattered platform incomes on a single screen. Shinhan Card plans to enable platform workers to easily provide their accumulated income information to financial institutions, allowing them to receive additional benefits in credit card issuance, loan limits, and interest rates. The company also plans to continuously expand this in connection with MyCredit, a personal business credit bureau (CB) service.

After launching the income advance service with LinkAsia, a platform connecting advertisers and one-person marketers, Shinhan Card is currently discussing income advance services and integrated income management with platforms such as Platformers, which connects cleaning managers to homes and workplaces; Salary, which provides free HR management services to franchise stores; and AlbaCheck, which offers non-face-to-face store management services, and plans to gradually expand the number of partner companies.

This income advance service is being promoted by the in-house venture team "Paydays," selected and active under last year's in-house venture nurturing program "I'm Ventures."

Moon Dong-kwon, Head of Shinhan Card's Management Planning Group, said, "We consider it very meaningful that Shinhan Card can contribute to social development through its core payment function in line with the rapidly growing gig economy trend. We will continuously strive to fulfill the company's social responsibility for mutual growth, including supporting financially vulnerable groups in connection with Shinhan Financial Group's ESG (Environmental, Social, and Governance) strategy, and to strengthen Shinhan Card's competitiveness through the activation of in-house ventures."

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