Zero Pay catches on amid pandemic

Seoul Mayor Park won-soon, left, pays for purchases with the Zero Pay mobile payment app at a convenience store in Seoul in this May 2019 file photo. / Yonhap

Seoul mayor criticized for capitalizing on crisis

By Park Jae-hyuk

The rapid spread of COVID-19 across the country has significantly raised the volume of payments made via Zero Pay, which had been sluggish since its launch in December 2018, the Seoul Metropolitan Government (SMG) said Monday.

The unexpected popularity of the government-run mobile payment app has been attributed to the increased tendency to minimize human contact when paying for purchases, as the virus can be transferred from contaminated items as well as from human-to-human contact.

According to the Seoul Metropolitan Government, the daily average volume of payments with Zero Pay surpassed 714 million won ($585,000) during the first two weeks of March.

The daily average number of payments reached 19,292 during the period.

On March 2 alone, the payment volume hit a record-high of 970 million won.

In February, the daily average payment volume was 594 million won, up 40 percent from 427 million won a month earlier.

The total volume amounted to 17.2 billion won, the highest since the service's launch.

The daily average number of payments stood at 16,629 in February, showing a 35 percent rise from the previous month.

“We believe the tendency to go contactless has contributed to the rise of payment volume,” said Lee Chang-hyun, who is in charge of operating Zero Pay at the Seoul government. “I heard part-time cashiers at convenience stores also prefer mobile payments to plastic cards or cash, because they can avoid contact with customers.”

Seoul Mayor Park Won-soon, who first proposed Zero Pay, has capitalized on this trend to boost the use of the mobile payment system.

When he met supermarket owners at the Korea Federation of SMEs on March 2, the mayor suggested they install Zero Pay terminals, so that they can avoid physical contact between staff and customers.

His efforts, however, have caused backlash from the opposition.

Seoul Metropolitan Council member Yeo Myeong of the main opposition United Future Party said Friday that Zero Pay is a “total failure” which has been ridiculed by citizens for its small payment volume.

“The Seoul Metropolitan Government even passed an ordinance to offer up to a 30 percent discount to those who use Zero Pay when paying admissions to the Seoul Grand Park and the Seoul Museum of Art,” she said. “The facilities' losses from the discount rate will be covered with taxes paid by Seoul citizens.”