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NHN headquarters. (Photo: NHN) |
[Alpha Biz= Kim Jisun] NHN KCP, a South Korean payment gateway (PG) service provider, continues to grow its revenue supported by new business initiatives and strong online and offline payment performance, though rising payment fees are weighing on profitability.
According to its latest quarterly filing, NHN KCP posted cumulative consolidated revenue of KRW 899.2 billion and operating profit of KRW 39.0 billion for the first three quarters of this year, up 10.13% and 23.54% year on year, respectively.
Growth was driven by new services such as the Global Trade Payment Platform (GTPP), jointly developed with KOTRA and Visa, as well as expanding online payment volumes. Online payment revenue rose 10.8% year on year to KRW 285.3 billion in the third quarter. Offline payment revenue also surged 146% to KRW 28.3 billion, reflecting the consolidation of KOCES and increased domestic consumption and inbound tourism.
The company expects to maintain profitability for the full year, citing improving momentum in both online and offline payment businesses.
However, profitability improvement remains limited as payment-related fees continue to rise alongside transaction volumes. Payment fees accounted for more than 90% of revenue last year, highlighting a structural challenge common across the PG industry, where higher sales also lead to higher costs due to settlement and processing fees paid to financial institutions.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
