Naver Pay will offer customers 10% of their purchase amount back in Naver Pay points when they use its Face Sign facial recognition payment service at Naver Pay Connect merchants nationwide. Following Toss's introduction of purchase-based rewards, Naver Pay's move is expected to intensify competition for users.
ETNews learned on Oct. 12 that Naver Pay plans to run the promotion throughout October and November for customers making facial recognition payments through its Connect all-in-one payment terminals. Rewards will be capped at KRW50,000 per month. Eligible payment methods include Naver Pay Money, Naver Pay points and cards registered with Face Sign.
This is the first time Naver Pay has offered purchase-based points rewards across Connect stores nationwide, in addition to opportunities to win random points through its “Point Draw” feature.
The company previously ran a points promotion at Connect stores near Naver's headquarters from Sept. 1 through Oct. 11. It is now expanding the offer nationwide.
More than 100,000 merchant locations had installed Naver Pay Connect as of the second quarter. Since launching Connect in November last year, the company has rapidly expanded its merchant network and is now using purchase-based rewards to attract users roughly a year after launch.
During the promotion, Naver Pay's 10% reward rate will exceed the maximum 7% offered by Toss Face Pay. Toss, however, has a larger network of 500,000 merchant locations. With both companies aggressively expanding their facial recognition payment services, competition over customer rewards is expected to intensify.
If the 10% promotion proves popular, it could pave the way for an ongoing points rewards program.
Naver Pay is also strengthening Face Sign's security while making payments more convenient. The service uses post-quantum cryptography (PQC), encryption designed to resist attacks using quantum computers, to protect data in transit and prevent intercepted information from being deciphered. Users must also tap a payment confirmation button after facial recognition before a transaction can proceed.
