 |
| A consumer makes a purchase via a QR code. Korea Times file |
By Kim Hyun-bin
More than 62,000 stores will join the Seoul Metropolitan Government's move to implement "Zero Pay," a QR code-based transaction platform that is aimed at reducing the financial burden on small businesses that pay transaction fees to credit card companies.
Seoul City signed an agreement with 26 franchise companies, two regional governments ― Busan City and South Gyeongsang Province ― and the Ministry of SMEs and Startups, Monday, to cooperate on expanding the payment system, so more consumers can utilize it and more stores can cut out transaction fees.
The participating franchises include Golfzon, Kyochon F&B, Ediya Coffee, emart24, Paris Croissant and Ministop Korea.
A total of 62,465 stores of the franchises nationwide have registered or shown interest in implementing the platform, according to Seoul City.
Zero Pay is a direct transaction system where consumers can scan the seller's QR code with their smartphone when making a purchase. Once the consumer scans the code, the money will be transferred from the person's bank account to the seller.
The platform charges little to no transaction fee ― up to 0.5 percent, according to the size of the store's sales ― and no transfer fee is given to the banks. This is much lower than credit card transaction fees, which range from 1.4 percent to 1.9 percent.
Since Oct. 29, Seoul has been recruiting stores to join the program. Following a test run, the city government plans to launch the service around Dec. 20.
"Most of the franchise store owners are self-employed, and they usually make low profits. The Zero Pay system will be beneficial to them as transaction fees will be reduced significantly," Seoul Mayor Park Won-soon said.
"We will work toward expanding the number of stores that use Zero Pay."
![[INTERVIEW] Meet the man behind giant rubber ducks that once took over Seoul](https://img.koreatimes.co.kr/upload/thumbnailV2/df32c60c8204448e98ccdb9841366bec.jpg/dims/resize/178/optimize)
![[REVIEW] Musical 'Monte Cristo' returns with riveting tale of vengeance, love](https://img.koreatimes.co.kr/upload/thumbnailV2/3934be1fa6844478b619a015d610bc5b.jpg/dims/resize/178/optimize)
