Visa, a global leader in digital payments, has teamed up with the Korea Trade-Investment Promotion Agency (KOTRA) to introduce the Global Trade Payment Platform (GTPP), the world's first card-based trade payment platform. GTPP is set to launch at the end of October.
In its initial rollout, the GTPP will facilitate payments from Japan, Taiwan, Singapore, the United States, and Mexico—countries that are among South Korea's top 10 trade partners in 2024. Over the next three years, the service is expected to expand to include the top 20 countries with the highest export volumes from KOTRA’s member companies.
GTPP is a digital platform designed for both domestic small and medium-sized businesses (SMBs) and international buyers, allowing them to register as members and manage payments. It tackles the payment difficulties encountered by domestic SMBs in processing export transactions. For international buyers, the platform offers a streamlined solution for trade payments by simply entering their card numbers. Additionally, the platform is accessible via mobile for greater convenience.
“Visa is committed to facilitating seamless, convenient and secure business transactions through our global network. This platform launch is particularly meaningful given the high growth potential in Korea’s B2B payment market”, remarked Chavi Jafa, Head of Visa Commercial and Money Movement Solutions, Asia Pacific. “Small and medium businesses are the backbone of the economy, and through our partnership with KOTRA and GTTP’s payment experience, we look forward to accelerating SMB growth in the region”, she added.
GTPP is anticipated to enhance cash flow for Korean exporters by reducing the payment receipt period. The payment costs on GTPP are lower than typical card payment fees and are structured to be shared between domestic exporters and international buyers, alleviating financial strain on both sides. Moreover, the platform features multiple verification steps during the card issuance process, providing superior fraud prevention compared to traditional methods. The '2023 Export Payment Settlement Trends Report' by the Korea Trade Insurance Corporation (K-SURE) indicates that the average export payment settlement period for domestic SMBs is 68 days, with a delinquency rate of 30.2%.