|▲ Nexpay / CEO Jaeho Choi|
Offline PG solution company Nexpay has made a grand slam of the Korean e-pay market tournaments. Until the advent of Nexpay, offline payment has depended on VAN and online payment on PG. Wowing the industry by obtaining a patent for smartphone credit card terminal, Nexpay has marched a step further and succeeded commercialization of the world first Offline PG.
The latest trend tells us that brand new smartphones tend to come without headphone jack. In other words, the Fin-Tech market is shifting fast and making the hole a history by replacing it with Bluetooth. We are soon expected to see MP-63 in December this year that can enable us to make transaction by punching in the amount and installments. Nexpay has finished obtaining KTC and registering to a credit finance association October this year.
Around 1 million street vendors, 320,000 door-to-door salesmen, 60,000 home study teachers and 12,000 caregivers are estimated to trade their skills without tax ID. Tax ID is a must to trade on credit card so they trade on cash only. And a solution was brought up not by the government but by Nexpay and the company with great pride firmly made a strong presence in the e-pay market within 4 years of its establishment.
November 2018, Nexpay introduced an innovative SMS payment service: the seller sends a text with URL to the buyer’s phone and payment is made by punching in card number and valid date. And the function is recently updated with QR transaction and ARS transaction. If the trader needs bulk transaction, Nexpay provides wireless terminal DKB-900. This makes Nexpay as the Korea’s first Off PG Card Membership Service provider that embraces both face-to-face payment and untact payment.
Around 15,000 people are making transactions for 24 hours on Nexpay app every day. What makes Nexpay attractive to shop-in-shop owners, for example, is that they do not need to argue with the shop owner over tax as Nexpay members directly get paid to their account except paying card fees.
One other attraction of Nexpay is that business owners with no tax ID can also trade on cards whether it is face-to-face or untact. And it comes with issuing cash receipt and you can check the flow of money in real time on your smartphone. For this reason, Nexpay is sometimes called as ‘mobile POS’. Also, you can change deposit day when you happen to have money urgently without contacting the company. If your sales are less than $26,000 a year, you can ask your tax accountant to report general income tax on the app without visiting a tax office.
The Nexpay’s innovation in e-payment market is not only welcome to small business owners but also to the government as it increases tax revenue by reducing the size of black economy. It is not surprising that the CFO of Nexpay is appointed as an advisory member of the fair taxation division of the National Tax Service last September. He says:
“If our system is realized in tax policy by the tax authority, it will add around $345 million to national tax revenue based on our calculation. It is a lot of money that all caddies in South Korea can buy 4 or 5 KF-X fighter aircraft every year.”
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