Naver Pay's offline integrated terminal, Npay Connect, has surpassed 100,000 merchants nationwide. An analysis says linking payment functions with Naver Place-based review and coupon services has helped drive adoption among small business merchants.

Naver Pay said on Monday that the number of Npay Connect merchants nationwide exceeded 100,000 in seven months after its launch in November last year. New installations over the past three months reached 52,000 merchants.

The company said the "keyword review" function, which connects immediately after payment, appeared to help merchants secure reviews. An analysis of the top 5 merchants by number of reviews in each industry showed that after adopting the terminal, review counts rose versus before adoption by 230 percent for restaurants, 157 percent for hair salons and 132 percent for cafes and bakeries.

By industry, restaurants accounted for the largest share of merchants adopting the terminal at 43.5 percent. They were followed by general retail at 14 percent, cafes and bakeries at 10 percent, beauty at 7.5 percent, and medical services and pharmacies at 7 percent. Adoption is also increasing at private academies and sports facilities.

By region, Seoul and the capital area accounted for about 43 percent of all installed merchants. The Gyeongsang region made up 27 percent and the Jeolla region 12 percent.

Naver Pay plans to speed up merchant expansion in the second half through partnerships with franchises and institutions. Starting with Paris Baguette, the terminal is set to be introduced at franchise merchants across various industries, including Baskin Robbins, Dunkin, CJ Foodville, The Venti, Isaac Toast, Shabu All Day, Yogurt World, Vogue Hair, Geo Hair and T Station.

It is also expanding integration with the existing offline payment ecosystem. Naver Pay is supplying Npay Connect through partnerships with major VAN companies such as NICE Information & Telecommunication, KICC and KIS Information & Telecommunication. Merchants can use it by connecting it without replacing the POS systems used at existing stores. The company plans to complete partnerships with all VAN companies within this year and expand linkage with POS operators.

Hyang-cheol Lee (이향철), head leader of Npay pay services, said, "We will strengthen collaboration with various partners in the payment ecosystem and establish ourselves as key offline infrastructure that helps small business owners grow their businesses."