The City of Busan to Promote New Payment Service ‘Zero Pay’ for Small Businesses
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The City of Busan launched ‘Zero Pay (simple payment service for small businesses)’ in cooperation with the central government, banks, and private payment service operators to reduce credit card commissions paid by small businesses in Busan in January 2019.
Last December, the City ran a trial service for the new payment option, Zero Pay, with the participation of about 40 to 50 restaurants and cafes near Busan City Hall and about 60 to 70 small businesses operating in Jagalchi Market.
Small businesses with under 800 million won in sales in the previous year will pay no fees for all transactions using Zero Pay.
Businesses with sales between 800 million won and 1.2 billion won will pay 0.3 percent, and businesses with sales over 1.2 billion won will pay 0.5 percent.
It is expected that businesses, especially small businesses, will benefit from the Zero Pay system, as current fees using other methods of payment typically vary from 0.8 percent to 2.3 percent.
Zero Pay is a direct transaction system where consumers can scan the seller's QR code with their smartphone app when making a purchase. Once the consumer scans the code, the money will be transferred from the person's bank account to the seller. Zero Pay will work with common mobile apps, such as Busan Bank SUM PASS, PAYCO, Naver Pay and SSG Pay.
Zero Pay’s income deduction rate will be 40 percent, which is significantly higher than credit cards (15 percent) or debit cards (30 percent).
The City of Busan has been busy recruiting stores to join the program.
For more information about Zero Pay, please visit its website at http://www.busanpay.or.kr (Korean) or call (051)860-6740.
