Paygate achieved 40 billion KRW remittance volume per month with “Netting.”

Paygate achieved 40 billion KRW remittance volume per month with “Netting.”

PayGate (CEO, Ms. Soyeong Park), launching remittance service successfully with its USD netting strategy, has achieved 40 billion KRW in monthly remittances.

Netting provides foreign currency remittance service under the concept of offsetting the money to be sent and received, which makes the remittance fast and cheap as it minimizes the expenses through legal transfer instead of illegal currency exchanges.

Based on the policy of Anti-Money Laundry (AML) that proposed by FATF (Financial Action Task Force), the remittance business with competitive FDS (Fraud Detection System) function is rapidly increasing.

Since the end of 2018 until this June, PayGate has owned about 40 billion KRW transaction volume per month after launching P2P inbound remittance service. As the fund received from other countries is growing steadily, the monthly volume is expected to achieve 100 billion KRW by the end of the year.

PayGate applies USD netting structure to the cooperation with TransferWise, a global remittance company headquartered in Europe. PayGate works as a remittance partner in Korea for TransferWise while its subsidiary (PayGate Hong Kong) uses DBS Bank (Hong Kong) to process remittance business, which constructs USD netting between PayGate (Korea) and PayGate Hong Kong.

In the beginning, PayGate attempted to acquire remittance license in Luxembourg, but since the required process cost too much time, PayGate then changed its target country to Hong Kong.

After passing the investigation of remittance business, company credit, and major shareholders, PayGate Hong Kong successfully obtained MSO (Money Service Operator) license from Hong Kong Government.

PayGate has improved the service by upgrading the fraudulent detection system in the first half of this year, and the supported countries include Singapore, Nepal, China and Bangladesh.

Netting is one of the most profitable methods in remittance service, which helps PayGate structure a stable profit from the second quarter of 2019.

Ms. Soyeong Park said, "To help customers transfer their money, PayGate must focus on Anti-Money Laundry and fraudulent transactions detection. Seyfert is therefore equipped with AML and FDS functions, which makes its members maintain their business sustainable."

PayGate insists the principles of managing funds and identifying senders and recipients correctly; that is, only legal and transparent funds will be processed. The service itself can be viewed as a monitor that makes customers safe in paying, transferring, and managing transparent funds.

PayGate, founded in 1998, keeps focusing on Fintech business such as P2P lending, Payment Gateway (PG), and foreign currency remittance service, based on its Fintech platform, Seyfert.

Not only in domestic market, PayGate has been promoting the business in global market since the beginning of the business, which makes itself become a great leader in cross border payment service.

It makes a lot of contribution to the launch of global financial service such as Alipay, Wechat Pay, Japanese convenience store payments and European account transfers, especially English, Japanese and Chinese support for Korean online stores.

PayGate has been a specialist in payment settlement for 21 years, and it will focus on cross border Fintech much more in this year. In addition to cooperating with domestic financial institutions, PayGate will expand its Seyfert service to more different countries by collaboration with global financial institutions.


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