As detailed by people familiar with the move, Kakao Pay is in discussions with Shinsegae Group’s affiliates, Shinsegae Inc. and E-Mart Inc., to acquire SSG Pay, which is operated by SSG.COM, and Smile Pay, run by the E-Mart unit Gmarket Inc. The deal is estimated to be worth USD 365 million.
The initiative comes as retail Shinsegae offloads non-core assets to strengthen its balance sheet.
If successful, the SSG Pay and Smile Pay customer base, approximately 25 million users combined, will strengthen Kakao Pay’s position in the Korean mobile payments market. Additionally, Kakao Pay would expand its merchant relationships in retail and online marketplaces, paving the way for new financial products within Shinsegae’s customer ecosystem.
According to the Bank of Korea, total transaction volume through simplified payment services reached USD 657.4 million in 2024, reflecting a rise of 9.6% from 2023. Moreover, the daily average number of electronic financial transactions increased by 12.3% on-year to 30.7 million in 2024. These transactions include all internet and mobile-based payments and purchases made with electronic and debit cards.
The report highlights a structural change in the country’s financial behaviours, as electronic payments are increasingly becoming the primary method of transaction in both the retail and service industries.
Electronic financial service providers, such as Kakao Pay, account for nearly half of the total transaction volume, with 40 licensed operators competing.
In March 2024, Kakao Pay announced its plan to end its currency exchange service, as well as its focus on QR payment expansion for international use. The company ended its pre-departure currency exchange solution for overseas travellers on 1 April 2025. The partnership with KEB Hana Bank, which had been cooperating on the currency exchange service until then, also ended.
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