[Tech] Necessity of ReapPay

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Today we will learn about the necessity of ReapPay.

① Problems in the existing market

a. Problems in service procedures

- Fee problem: In the existing simple payment system, the fee burden is increased due to the complicated structure of the payment process. As of the first half of 2020, it was found that Naver Pay and Kakao Pay commission rates were higher than those of credit cards when looking at the commission rates of merchants with ‘annual sales of 3 billion won or less’. This is because they have a double payment structure. Most of the commission sales of simple payment companies are paid to card companies and electronic payment agencies (PG companies). Therefore, a fundamental method to solve this structural problem is needed.

< Picture1. Payment process of existing simple payment >

b. Problems with service technology

- Weak security: Because there is no protection device for personal information such as simple authentication methods such as fingerprint recognition and password considering user convenience and stored credit card information, it is vulnerable to payment security and exposure of personal information. To secure security, various types of services such as ‘Face Pay,’ which allows payment with a face without a smartphone, are being released. However, concerns are still being pointed out about personal information leakage, the possibility of forgery or falsification, and the theft of mobile virtual accounts. In fact, it was confirmed that about 74.9% of the security problems that occurred when using mobile payments in 2020 were related to personal information leakage, so security vulnerabilities are the biggest problem that mobile payment users are concerned about.

- Lack of versatility: According to the results of a survey conducted by the Korea Consumer Agency on ‘the most inconvenient point when using the existing mobile simple payment service’ in 2019, 30.7% answered ‘restricting the use of a specific payment service for each merchant’ Among the survey results, the second-highest response result was obtained. This is because the devices and programs required for each payment method, such as App Card, NFC, and MST, are different for each company that provides mobile simple payments, so it can only be used at affiliate stores of companies that provide simple payment services. In addition, it isn’t easy to introduce all payment methods since merchants need to install additional devices or programs to provide these payment services.

② Overview and Solution of ReapPay

a. Building a decentralized P2P transaction system based on blockchainbased strong security

< Picture2. Blockchain-based P2P transaction system structure >

- ReapPay builds a P2P transaction between a consumer and a merchant rather than a centralized payment system based on blockchain technology, and verifies previous transactions whether the payment process is appropriate by creating and storing the data generated during the transaction in a block. Since the blockchain distributes and stores transaction details in multiple nodes, it guarantees safe transactions by fundamentally blocking hacking and forgery.

b. Provides user convenience through compatibility with existing POS and linking with other payment methods

< Picture2. Blockchain-based P2P transaction system structure >

- ReapPay basically pursues QR simple payment, and by accepting all existing simple payment methods such as MST, NFC, and bank transfer, it minimizes customers’ reluctance to new payment methods, It is intended to serve as a channel for payment methods.

• In addition, payment can be made through the ReapPay app installed on the consumer’s smartphone without replacing the POS program already in use by developing an interworking API compatible with the POS program in use.

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