NHN KCP Builds Card Payment Infrastructure for Cash-Centric Wholesale Market, Easing Auction Payment Burden
TECHWORLD ·
✦ AI Summary
NHN KCP said on the 15th that, in collaboration with Enboost, it has built payment infrastructure to support card payments for auction proceeds in the agricultural wholesale market.
NHN KCP integrated card payment infrastructure into NDPAY, and Shinhan Card provides the dedicated card for intermediaries.
Intermediaries can settle the card bill up to 30 days later, and wholesale market corporations receive payment 2 business days after card payment is completed.
NHN KCP announced on the 15th that it is expanding into the B2B distribution payments sector. The company said it has built payment infrastructure to support card payments for agricultural wholesale market auction proceeds in the cash-centric wholesale market.
The infrastructure was built through a collaboration between NHN KCP and Enboost. NHN KCP integrated card payment infrastructure into NDPAY, a payment agency solution for auction proceeds payment and settlement in wholesale markets.
NDPAY is a service that uses Shinhan Card's card for intermediaries, linking intermediaries' card payments for auction proceeds with wholesale market corporations' receipt of payments. Through this, intermediaries can now pay auction proceeds with a dedicated card.
Intermediaries can secure up to 30 days until the card payment due date. Wholesale market corporations can receive payment 2 business days after card payment is completed. The company said this can help ease the burden of paying auction proceeds.
Under this structure, NHN KCP supports card payment processing and payment infrastructure for payments and settlement. Shinhan Card provides the dedicated card for intermediaries. Enboost is responsible for providing and operating the NDPAY service.
According to NHN KCP, under the existing practice in agricultural wholesale markets, intermediaries purchase agricultural products at auction and then pay the auction proceeds in cash or by bank transfer. Intermediaries must pay the auction proceeds within a set deadline.
By contrast, in the cash flow of intermediaries, a certain period is needed after they sell the agricultural products they bought to retailers or restaurants before they can collect the payment. For this reason, the timing of agricultural product purchases and the timing of receiving sales proceeds may not match.
When such timing mismatches occur, intermediaries face the burden of securing the cash needed in advance every time they participate in an auction. Wholesale market corporations, too, may see the timing of payment receipt vary depending on intermediaries' payment schedules and financial conditions. Accordingly, wholesale market corporations may face the burden of separately managing unpaid amounts.
The company said that using NDPAY allows intermediaries to purchase the agricultural products they need with a dedicated card. It also said purchases can be made before sales proceeds are collected.
In addition, instead of paying auction proceeds in cash immediately, payment can be deferred until the card payment due date, the company said. The deferral period it cited is up to 30 days. The company explained that this can ease the burden of managing funds associated with upfront cash payments.
Under the card-payment-based settlement structure, wholesale market corporations can receive auction proceeds on D+2 on a business-day basis after card payment is completed. Wholesale market corporations can receive payments regardless of each intermediary's individual payment schedule.
As a result, wholesale market corporations can predict the timing of payment receipt in advance and reduce the burden of payment delays and managing unpaid amounts. Accordingly, stability in fund management can also be improved.
The procedures for payment confirmation and transaction management have also been simplified. Intermediaries can check card usage details in real time on NDPAY, and wholesale market corporations can confirm payment status and remittance status. As a result, work to individually verify whether cash has been deposited and to manually reconcile transaction records is reduced, and the progress from payment to receipt can be managed as electronic data.
NHN KCP said it plans to actively identify payment demand in similar B2B distribution settings where recurring payments and settlements occur, following this collaboration. It also plans to provide payment infrastructure to businesses that trade mainly in cash and bank transfers, offer payment infrastructure tailored to industry-specific transaction structures to businesses that face the burden of building their own card systems, and pursue expansion of new B2B payment touchpoints.
Source: TECHWORLD · Lee Gwang-jae
Original: https://www.epnc.co.kr/news/articleView.html?idxno=406938
References
This article was produced with the help of an automated content generation algorithm.
Source: TECHWORLD
View originalThis article was summarized and organized by BizCrush based on the original article from TECHWORLD. For exact quotations and full details, please refer to the original article.