Visa and the Korea Trade-Investment Promotion Agency (KOTRA) announced a new card payment platform dedicated to trade settlements in South Korea. This initiative aims to enhance the efficiency and security of business transactions, providing a digital solution that simplifies payments for small and medium-sized businesses (SMBs) and their international partners. By leveraging Visa’s global network, the platform seeks to drive growth in Korea’s B2B payment market.
Previous announcements about Visa’s involvement in B2B payments have highlighted their commitment to streamlining international business transactions. The latest development further solidifies Visa’s focus on facilitating seamless trade payments. Similar efforts in other regions have shown positive impacts on transaction speeds and cost reductions, promising a beneficial outcome for South Korean enterprises.
The platform, named Global Trade Payment Platform (GTPP), is scheduled to be operational by the end of October. Initially, GTPP will support payments involving five of South Korea’s top trading partners: Japan, Taiwan, Singapore, the United States, and Mexico. Visa plans to expand this service to include 20 countries within the next three years.
Enhancing Trade Efficiency
The GTTP allows domestic SMBs and registered overseas buyers to conduct transactions by simply entering their card numbers. The digital platform, which is also accessible via mobile, facilitates export payment processing and shortens the payment receipt period for Korean exporters. Additionally, it offers lower payment costs compared to standard card fees, dividing these costs between exporters and buyers.
Visa’s head of Commercial and Money Movement Solutions, Asia Pacific, Chavi Jafa, emphasized the platform’s role in boosting Korea’s B2B payment market.
“Visa is committed to facilitating seamless, convenient, and secure business transactions through our global network,”
Jafa stated, highlighting the significant growth potential in this market.
Boosting Economic Growth
The partnership between Visa and KOTRA aims to accelerate SMB growth in the region, with Visa seeing embedded finance as a key driver for B2B commerce evolution. This initiative offers a consumer-like online experience, moving traditional analog B2B interactions into the digital space. Alan Koenigsberg, Visa’s senior vice president, suggested that as larger firms adopt embedded finance, smaller enterprises will likely follow.
Visa’s collaborative efforts with KOTRA indicate a strategic move to empower small and medium businesses by providing a secure and efficient payment method. The GTTP enhances fraud prevention by incorporating verification steps during card issuance, ensuring a safer transaction environment for all parties involved. By reducing payment periods and costs, the platform aims to streamline business operations and foster economic growth.
Visa and KOTRA’s initiative not only seeks to streamline and secure trade payments but also promises to bolster the economic framework for SMBs in South Korea. The GTTP is poised to reduce transaction times and costs significantly, providing a robust and reliable platform for international trade. As Visa continues to expand its reach, the positive impacts on the B2B sector are expected to amplify, making it a pivotal player in the global trade ecosystem.
