Visa and KOTRA Launch World's First Card Payment Platform for Trade Settlements in South Korea

September 11, 2024 03:30 PM AEST | By Cision

Visa and KOTRA Launch World's First Card Payment Platform for Trade Settlements in South Korea — Image source: Kalkine Media

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Platform enhances security and cash flow management for businesses compared to traditional remittance methods
Japan, Taiwan, Singapore, the United States, and Mexico are the first five markets in initial launch

SINGAPORE, Sept. 11, 2024 /PRNewswire/ -- Visa, a global leader in digital payments, has partnered with the Korea Trade-Investment Promotion Agency (KOTRA) to launch the Global Trade Payment Platform (GTPP), the first platform for trade payments by card globally. GTTP is scheduled to be live at the end of October.

In the initial launch, GTPP will support payments from Japan, Taiwan, Singapore, the United States, and Mexico – these markets are in the top 10 of South Korea's trade partners in 2024.^[1] The service is planned to extend to the top 20 countries with the highest export volumes among KOTRA's member companies within the next three years.

GTPP is a digital platform that enables both domestic small and medium-sized businesses (SMBs) and overseas buyers to register as members to send and receive payments. The platform addresses the payment challenges faced by domestic companies, particularly SMBs, in processing export payments. For overseas buyers, the platform provides the advantage of making trade payments easily and conveniently by simply entering their card number. The platform is also available by mobile for added convenience.

"Visa is committed to facilitating seamless, convenient and secure business transactions through our global network. This platform launch is particularly meaningful given the high growth potential in Korea's B2B payment market," remarked Chavi Jafa, Head of Visa Commercial and Money Movement Solutions, Asia Pacific. "Small and medium businesses are the backbone of the economy, and through our partnership with KOTRA and GTTP's payment experience, we look forward to accelerating SMB growth in the region," she added.

GTPP is expected to improve cash flow for Korean exporters by shortening the payment receipt period. Payment costs on GTTP are lower than standard card payment fees and are designed to be shared between domestic exporters and overseas buyers, reducing the financial burden on both parties. Additionally, the platform incorporates various verification steps during the card issuance process, offering greater fraud prevention compared to traditional methods.

According to the "2023 Export Payment Settlement Trends Report" published by the Korea Trade Insurance Corporation (K-SURE), the average export payment settlement period for domestic SMBs is 68 days with a delinquency rate of 30.2%.

[1] Trade Statistics, Korea Customs Service. Data retrieved as of 2 September 2024. https://tradedata.go.kr/cts/index_eng.do

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