Recently , Naver has taken action to counter Coupang's comprehensive expansion of its " rocket delivery " range . Coupang and Naver are competing fiercely for the throne of South Korea's e-commerce with strategies that maximize their respective delivery and payment advantages .
Naver Naver Financial announced on the 8th that it will expand the proportion of "quick settlement " for small and medium-sized enterprises (SMEs) to 100%, where sales payment is paid the next day after delivery . Naver Financial explained that it is the first time in the world that sales payment is fully paid without guarantee or handling fees, even if the purchase has not been confirmed due to the possibility of refund or return .
Image source: Naver The "Quick Settlement" first launched in November last year has accumulated sales payments of 1.4 trillion won in just four months and has quickly stabilized. Based on big data, the " risk detection system" that screens risky transactions and sellers reduces risks has led to the expansion of the payment ratio to 100%.
Choi Jin-woo, the head of Naver Finance, said: "Quick settlement has been able to continue to develop because it is a financial service based on big data technology. The goal is to allow small and medium-sized sellers who operate smart stores to not have difficulty in cash flow."
Naver's "settlement speed war" is aimed at Coupang. Currently, Coupang's payment settlement time is 40 to 50 days, which is the longest in the e-commerce industry. As of the end of last year, Coupang's debt was US$1.066 billion ( about 1.02 trillion won ) . If the settlement period for sellers is shortened , Coupang 's liquidity may deteriorate significantly.
Coupang also operates a service that allows users to receive up to 90% of the payment the day after the sale , but the actual utilization rate is low. Since May last year , Coupang has been operating a loan product with Kookmin Bank , but its interest rate is only 0.013% per day (4.8% per year). Image source: Coupang If settlement is delayed, it will be difficult for sellers to secure inventory or develop products. Therefore, some Coupang sellers have been asking for shorter payment terms.
Therefore, analysts believe that if Naver can differentiate itself from Coupang through "fast settlement", the platform's dominance will increase. However, looking at the entire Korean delivery logistics network, Naver is still far from being a rival to Coupang in this regard.
Last year, Naver and Coupang's GMV were estimated at 28 trillion won and 24 trillion won , respectively, accounting for about 30% of South Korea's annual online shopping transactions ( 161 trillion won). South Korea Naver Payment Settlement |
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