Naver Pay to cover transaction fees for small merchants using Npay Connect

Naver Pay announced Wednesday it will subsidize payment processing fees for small merchants using Npay Connect, its integrated offline payment terminal, as part of efforts to strengthen co-prosperity with small business owners.

Starting Monday through Dec. 31, the company will refund Npay Money and point transaction fees incurred at Npay Connect merchant locations classified as micro or small businesses under National Tax Service criteria. The initiative is designed to help small business owners build a digital payment environment through Npay Connect, boost store competitiveness and ease the cost burden of payment fees.

Eligible merchants do not need to apply separately — they will automatically receive refunds on Npay Money and point in-store payment fees processed via QR code, Samsung Pay and the facial recognition payment service Facesign. Refunds are calculated monthly and deposited into merchants' BC Card settlement accounts by the 15th of the following month. Further details are available on the Naver Pay Center and Smart Place notice boards.

Npay Connect supports multiple payment methods through a single terminal, allows customers to redeem store-issued coupons at the point of sale and prompts them to leave a Naver review after completing a transaction. The device can also function as a mini kiosk, offering a range of features designed to help stores go digital and improve operational efficiency.

Naver Pay runs several co-prosperity programs centered on Npay Connect. It is working with the Korea Federation of Small and Medium Business to help small merchants replace aging payment terminals with Npay Connect units, and has partnered with the Seoul Credit Guarantee Foundation and Hana Bank to offer guarantee-backed loans to Npay Connect merchants in Seoul.

"We will continue to roll out a variety of co-prosperity programs so that small business owners can genuinely feel the benefits — stronger store competitiveness and real business growth — through Npay Connect," a Naver Pay official said.

Including this program, Naver Pay has offered fee support to small merchants four times this year. During the Lunar New Year holiday in February, it covered in-store payment fees for micro and small merchants. It extended similar support during the Family Month holiday in May, and is currently subsidizing Npay fees for online and offline in-store payments as well as Naver reservations and orders for micro merchants during the peak summer vacation season in late July.

Meanwhile, Npay Connect, launched in November last year, surpassed 100,000 merchant locations nationwide as of June. Some 52,000 of those were newly installed in the past three months alone.