"Pay Now, Settle Next Month"... Toss Launches Postpaid Payment Service

Public Access for Some Users Aged 19 and Over
Up to 300,000 KRW Usable per Month

[Asia Economy Reporter Minwoo Lee] Mobile financial platform Toss is launching a Buy Now, Pay Later (BNPL) service that allows users to "buy now and pay next month." By advancing its credit evaluation model, it is expected to actively target "Thin Filers," who have limited financial history and find it difficult to access credit payments.

Toss operator Viva Republica announced on the 30th that it will launch this BNPL service. This comes about four months after being designated as an innovative financial service by the Financial Services Commission last November. The strategy is interpreted as aiming at the small credit payment market for Thin Filers, such as young people and housewives who have limited financial history and find it difficult to use credit cards.

To use Toss's BNPL service, users must register an automatic payment account and undergo screening. After that, they can select products at BNPL-affiliated merchants and choose Toss Pay at the payment stage to proceed with BNPL. The monthly payment limit is up to 300,000 KRW. No separate fees or interest are charged for using the service. The payment amount for the current month will be withdrawn from the designated account on the 15th of the following month.

Initially, the service will be launched for some users aged 19 and older, and the number of merchants and users will be gradually expanded. Since the strategy is to minimize risk by utilizing an alternative credit evaluation model based on users' financial information, payment history, and other non-financial data, it is expected that the service will be provided to all users once this model is further advanced.

Following big tech companies like Naver and Kakao, Toss's entry into the BNPL market is expected to intensify competition. Earlier, Naver Financial has been offering a small BNPL service with a monthly limit of 300,000 KRW for Thin Filers since April last year, achieving 270,000 subscribers and transaction amounts exceeding 33 billion KRW within eight months of launch. In January, Kakao's simple payment specialist affiliate Kakao Pay also launched a transportation card that allows BNPL with a monthly limit of 150,000 KRW.

A Toss representative said, "We will continue to advance the BNPL service that aligns with the context of providing small credit opportunities to social beginners and housewives who have limited financial history," adding, "We aim to catch two rabbits?user convenience and inclusiveness?by providing a simple and innovative payment experience."

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