Naver integrates points program with Samsung Pay

The online money and points of South Korea's Naver Pay, an affiliate of the country's largest web portal Naver Corp., can now be used at offline stores.

Naver Pay on Monday said its money and points are part of Samsung Pay's on-site payment service usable at any offline store nationwide that accepts BC Card. Naver Pay money is a prepaid amount linked to a bank account and its points comprise the amount accumulated through purchases and event participation.

In March, Naver Pay revamped its app's functions to include Samsung Pay’s payment service Magnetic Secure Transmission (MST). With the latest update, Naver Pay money and points can be used to pay under the MST method.

The same service can also be used through the Samsung Pay widget. Payments are made from a smartphone's main screen without needing to open a separate app.

Even Naver Pay members under age 19 who have difficulty using credit cards can make offline payments with the company's money and points if they have a Samsung Galaxy smartphone terminal equipped with Samsung Pay. Payment with Naver Pay money is eligible for income tax benefits without separately needing to apply for a cash receipt.

Users can choose to pay with Naver Pay money or points.

In November, Naver Pay in the Naver app will roll out an offline MST payment function for its money and points.

Its annual payment volume nearly doubled from 27 trillion won ($20.1 billion) in 2020 to 49 trillion won last year, and the company's goal is to exceed 100 trillion won by 2025.

Industry observers expect a major ripple effect from the integration of Samsung Pay and Naver Pay points because it offers more generous points benefits than credit cards.

"We're also preparing to launch this year a prepaid card for both domestic and international use based on our money and points," a Naver Pay source said.

Write to Ju-Hyun Lee at 2juhyun@hankyung.com