Kakao Pay to Acquire SSG Pay and Smile Pay in $365M Deal
Hey FinTech Fanatic!
Kakao Pay, one of Korea’s “big three” payments firms with a combined market share of 90%, is now strengthening its domestic position through M&A. The company is in advanced talks to acquire SSG Pay and Smile Pay from Shinsegae Group.
Together, SSG Pay and Smile Pay serve over 25 million users, a scale that makes them valuable assets in a market where size often determines reach. The estimated $365 million deal comes as Shinsegae looks to divest non-core assets and improve its balance sheet, following earlier talks with Viva Republica that ultimately collapsed.
While Kakao Pay trails Naver Pay and Toss Payments in revenue, it remains a major player, accounting for a significant share of Korea’s fast-growing transaction volume. Last year, daily usage of simple payment services averaged nearly 960 billion won, with electronic financial companies like Kakao Pay capturing just over half.
The acquisition would also expand Kakao Pay’s merchant network across retail and online marketplaces, opening new opportunities for financial product development within Shinsegae’s customer ecosystem.
This move follows Kakao Pay’s decision, two months ago, to discontinue its currency exchange service and shift focus to expanding QR payments for international use.
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M&A
🇰🇷 Kakao Pay plans to acquire SSG Pay and Smile Pay for digital optimisation in Korea. If successful, it will strengthen Kakao Pay’s position in the Korean mobile payments market. Additionally, Kakao Pay would expand its merchant relationships in retail and online marketplaces, paving the way for new financial products.
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