Hecto Financial and KakaoBank are joining forces to expand account-based payment services and find new business models. The two companies plan to jointly develop next-generation payment services by combining payment infrastructure with platform competitiveness. They also plan to strengthen customer convenience and a foundation for mutual growth with merchants.

Hecto Financial said on May 20 it signed a memorandum of understanding with KakaoBank on May 19 at its headquarters in Yeoksam-dong, Seoul, to promote businesses related to account-based payments.

Under the agreement, the two companies decided to pursue a range of cooperation measures to build next-generation payment services, without limiting the partnership to a specific business model. Based on their technical capabilities and business know-how, they also plan to jointly prepare new payment methods that reflect market demand.

The companies also plan to expand synergies in South Korea's payment market by combining Hecto Financial's payment infrastructure and merchant network with KakaoBank's customer base and platform competitiveness. To that end, they will form a working-level consultative body and move to identify specific business models.

An official from the two companies said, "We will present a new payment experience that provides differentiated benefits and convenience for customers and build an ecosystem that can grow alongside merchants." The official added, "We will actively cooperate so that this partnership can lead to new business opportunities and the creation of new revenue sources."