SEOUL, Aug. 23 (Korea Bizwire) – With South Korean internet-only financial institution Kakao Bank continuing to enjoy a significant level of attention, business partner 7-Eleven is benefiting from the online bank’s popularity.
In the midst of the surging popularity of Kakao Bank that is sweeping the country, 7-Eleven has emerged as the unexpected beneficiary from its partnership with the internet bank, as the company’s stores also serve as offline branches with commission-free ATM machines for Kakao Bank users.
According to industry sources on Tuesday, some 4,000 ATM machines installed at 7-Eleven stores across South Korea are attracting Kakao Bank users after both companies signed a memorandum of understanding in June.
Since then, the popular convenience store chain has been benefiting from the rapidly growing number of Kakao Bank customers, which reached 1 million within the first five days.
“With the rise in the number of Kakao Bank users, more people who visit 7-Eleven to use ATM machines end up buying other things at the store,” an industry official said.
According to 7-Eleven officials, the exemption of ATM commission fees, which can be up to 1,300 won ($1.15), is among the main reasons why many of the online bank’s clients are visiting their stores.
Although 7-Eleven does not receive commission from Kakao Bank for hosting the ATMs, visitors to the stores tend to contribute to the revenue of each store, and 7-Eleven sees the collaboration as a positive development for its stores.
“As internet-only banks become more popular, 7-Eleven, which boasts the highest number of ATM machines among convenience store chains in South Korea, will play an important role in comprehensive financial infrastructure,” Jung Seung-in, the president of Korea Seven, said.
Currently, nearly 9 in 10 ATM multi-purpose machines that offer transferring as well as withdrawing and deposit services at convenience stores in South Korea are located at 7-Eleven stores.
Ashley Song (firstname.lastname@example.org)