KAKAO PAY Delivery Service and Future

KAKAO PAY Delivery Service and Future

Recently, KAKAO Pay’s business actions are extraordinary. They have launched various service with aggressive marketing. At the same time, when it comes to their profit, they have a challenge from their shareholders because their business profit is relatively low compared to their sales. Nevertheless, their actions to make fixed investment for new small business are positive.

적극적으로 사업 확장을 하고 있는 카카오페이
KAKAO PAY Corporation is actively expanding their business
KAKAO PAY Corporation is actively expanding their business

Some days ago, KAKAO Pay launched ‘Delivery’ service on their app, KAKAOPAY. They had an alliance with LOTTE Delivery Service (They are on top-tier group in Korea business). Through the service, users can easily send something. There are two ways to use the service. One is that a courier come to the sender. Another is that the sender visits a convenience store to send something after done with all actions about the service.

This service is integrated platform service having all functions which the existing delivery service or app is already offering. By launching this service, KAKAOPay will get commission from the existing delivery companies. And, as its users sharply increase due to easy access and convenient UX, a number of alliance companies will be expanded.

카카오페이는 최근 배송 서비스를 오픈했다.
KAKAO Pay Corporation recently launched 'KAKAOPAY Delivery' service
KAKAO Pay Corporation recently launched ‘KAKAOPAY Delivery’ service

Customers can easily use delivery service by utilizing KAKAOPay Delivery service on KAKAO Pay or KAKAO Talk. (KAKAO Talk is No.1 communication platform in Korea), In the view of delivery companies, they can expect additional profit by increase of users utilizing delivery service, which means that a pie of business is being bigger.

A process of KAKAOPay Delivery Service is so simple.

  1. Launch KAKAO Pay App
  2. Click ‘Delivery’ Service
  3. Select a way for delivery (a. Courier visit / b. Convenience visit)
  4. Input information of sender and receiver
  5. (If don’t know address of receiver)Possible to request it to the receiver via KAKAO Talk Platform
  6. Input information of Package or Box (you want to send)
  7. Payment and Completion

Especially, a critical point of this service is a function that a sender requests address to a receiver via KAKAO Talk platform if they don’t know receiver’s address. This is possible because they have No.1 communication platform, ‘KAKAO’.

KAKAO Pay Future and Concern

With KAKAO, KAKAOPay will actively expand their business. When it comes to those actions of them, there is a concern. This is because it seems that major companies penetrate all small markets. However, if considering essentials of platform business, their actions are not bad.

Personally, even though both aspects are all right, I have little more negative thought about this. This is because KAKAO fall short of the public’s expectations, which means that KAKAO does not show their innovative technologies yet. It does not means that all services are like this. However, at least, they should be more careful to expand their business because they have monopolistic and oligopolistic platform, KAKAO Talk even though their tries are still good.

In the near future, I expect some social conflicts about platform business. After going through this, I think that our technology level and social recognition will be upgraded.

KAKAO PAY Delivery Service and Future

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