The #1 Billing and Payment Platform for Content Companies

Korea is home to one of the world's most advanced ICT industries, and we have seen domestic innovators successfully establish themselves in the local market, even against strong competition from American and Chinese companies. What do you think Korean companies have learned from competing domestically against these international players that might help them expand abroad?

Korea is a relatively small country, which is why we must adopt highly focused strategies. Since the early 2000s, our infrastructure has developed rapidly, and at the same time, our expertise and know-how have become two key strengths. I’d like to highlight the gaming industry as an example. In the early 2000s, Korea saw a surge in gaming-related content. As the demand for content grew, so did the need for solutions and infrastructure to support it. This environment played a crucial role in fostering the growth of domestic companies, allowing them to thrive in both local and global markets.

Regarding this evolving infrastructure that contributed to domestic growth, infrastructure is often deeply tied to local culture and ways of doing business, which can vary significantly from Korea to regions like Europe, the U.S., or China. Do you think Korean companies, having developed within this unique ecosystem, can successfully adapt to entirely different environments with different regulations and business practices?

Yes, I do believe they can, and I’d like to use the gaming industry as an example. In the past, North America’s gaming market was primarily focused on console sales, whereas Korea’s gaming culture revolved around PC cafés and in-game billing systems. As Korea's infrastructure developed, so did its gaming content, positioning the country as a pioneer in payment systems tailored to the gaming industry. This innovation has since expanded to other sectors, including K-pop and various cultural industries. With each new infrastructure advancement, new payment systems emerge, and Payletter is playing a significant role in shaping this space. As a result, we are highly optimistic about the future and the global impact we can make.

You have provided billing and payment solutions to a wide range of industries. You've mentioned gaming, entertainment, broadcasting, aerospace, and e-commerce, among others. Why is the gaming industry the focal point of Payletter? Can you explain what makes this industry different from the others?

As you mentioned earlier, Korea has been concentrating on niche markets, and that’s where we have a strong advantage, particularly in the content sector. Since the early 2000s, the gaming industry has flourished in Korea, with a significant growth in both content and infrastructure. As a result, Payletter naturally gravitated toward this sector to leverage our strengths. Over the years, we’ve accumulated valuable data and know-how, which has cemented our ongoing focus on gaming. Looking to the future, we believe that data will be key to success, and with our expertise and data, Payletter is poised to make a substantial impact, both locally and globally.

You’ve expanded beyond billing to offer comprehensive payment services. When we look at the FinTech industry as a whole, big tech companies dominate the market due to economies of scale, global networks, platformization, and advanced technologies. Could you explain where the industry is headed and why you believe your approach aligns with the future of FinTech 4.0?

To start, I’d like to clarify that our focus is on billing and payment systems. While global payment giants like PayPal and Stripe are major players in the payment space, Payletter does not directly compete with them. Instead, we specialize in content billing and content payments, areas where we have accumulated extensive data and expertise. We are also highly focused on risk management, which sets us apart in these niches. In the realm of payment solutions, convenience is important, but even more crucial is security and safety. This is where we distinguish ourselves from other companies. At Payletter, we place strong emphasis on ensuring that our solutions are secure, offering a level of protection that is critical for the future of FinTech 4.0.

Cybersecurity threats are becoming increasingly sophisticated and complex every day, especially with the rise of AI-driven solutions. As these threats evolve, it is becoming more challenging for the industry to keep up. You are using AI for fraud management and other security solutions. How do you ensure the security you mentioned, and how does AI play a role in strengthening the security of billing and payment systems?

One of the key strengths of the Korean and Japanese markets is that we have an exceptionally low rate of credit card fraud. This is largely because there is a credit card company acting as an intermediary between the billing entity and the bank, which adds an extra layer of security. As a result, fraud rates remain very low. At Payletter, we take this a step further by using AI to analyze transaction patterns at an early stage, allowing us to detect and prevent fraudulent activity before it happens. The most critical aspect of AI in fraud prevention is asking the right questions. To do that effectively, we need access to vast amounts of data and a deep understanding of behavioral patterns. Since Payletter specializes in billing and payment systems, we have the necessary expertise and extensive data to refine our AI models, ensuring they can identify and mitigate risks efficiently.

In many parts of Europe, the prevailing mindset is that the more intermediaries involved in a financial transaction, the greater the potential security risk. However, you mentioned that in Korea and Japan, having an intermediary between the bank and the billing entity actually enhances security. Could you explain this difference in perspective and how this added security is achieved?

There may have been a slight miscommunication earlier. From a technical standpoint, transactions in Korea happen directly between the store and the bank. However, the credit card company acts as an intermediary, functioning as a fraud detection and prevention filter. It monitors transactions, detects suspicious activity, and maintains a blacklist of individuals attempting fraudulent transactions. This role is not necessarily about technology alone but also about data accumulation and risk management.

If I may elaborate further, security in Korea is not solely dependent on technology but also on governance. Compared to Europe, Korea's regulatory environment is more conservative, with higher levels of government involvement in financial security. Additionally, industries such as gaming and digital content have unique user expectations and complex regulatory frameworks, making security management more intricate. At Payletter, we adhere to the highest global security standards. We have been PCI DSS certified—a top-tier security certification—for over a decade. This ensures that we comply with international security protocols and are well-versed in handling global compliance requirements.

Established in 2001, Payletter is a fintech company specializing in billing and payment service solutions. For over 20 years, the company has gained recognition in the gaming, entertainment, broadcasting, and e-commerce industries. Could you walk us through the key milestones in Payletter’s history?

Payletter aims to be recognized as the world’s leading content billing and payment company.

We were founded in 2001, and by 2004, we began expanding into the global market, starting with Southeast Asia—Indonesia and Thailand in particular. In 2007, we expanded further into North America, and by 2011, we had gained recognition as a billing solution provider in both North America and Europe. One of our most notable clients is Riot Games.

The gaming industry has always been an exciting and dynamic field, which is why we initially focused on it. However, between 2011 and 2015, with the rapid growth of mobile gaming, our expertise in billing and payments became even more critical. Although we faced some challenges during this period, we made a major breakthrough in 2016 by expanding our solutions beyond gaming and into offline industries as well. This diversification was a significant turning point for us.

Starting in 2023, our sales surged as we positioned ourselves as a global payment company, leveraging our expertise in billing systems. Our success in the gaming industry was largely due to our ability to verify IPs and provide tailored billing solutions that streamlined payment processes for companies. Since 2016, we have broadened our scope to include the content industry, offering payment and billing solutions for music and digital content providers. Our services help companies accurately calculate sales, manage subscriptions, and maximize their revenue streams.

To achieve that, you offer three main products: BillOneQ, which has over 10 years of experience, as well as PayOneQ and GlobalPayOneQ, which focus on domestic and international payment transfers. With such a comprehensive portfolio spanning both billing and payment services, could you explain how these solutions—whether used separately or in combination—stand out for your clients?

Before 2023, we provided billing and payment solutions separately. Our billing services were fully customized and tailored to each client’s needs. While we initially developed a SaaS model, we were still in the preparatory phase at that time. However, starting in 2023, we integrated our billing and payment solutions, creating a more powerful and seamless offering.

For example, in the music industry and subscription-based services, we previously handled backend billing processes, such as licensing and revenue distribution—calculating the exact percentage owed to various stakeholders. This was traditionally a billing service offered separately. However, we have since transformed it into a fully integrated payment solution, allowing for smoother transactions and automated revenue distribution.

Content billing may seem complex, but it is an area where we excel because of our ability to manage the many stakeholders involved. Take a music streaming platform, for instance. The ecosystem includes not just users and providers but also composers, singers, musicians, and copyright holders—each with their own financial interests. Managing these relationships and ensuring accurate revenue distribution can be highly intricate, often leading to conflicts. Our strength lies in simplifying this process, addressing the growing complexities and evolving expectations of content providers, all of which are closely tied to monetization.

For smaller content providers, I can clearly see the value of working with an intermediary. For larger platforms, what were the key factors that led them to choose your company—not just for billing, but also for payment processing—rather than relying on their ERP systems or directly integrating APIs from providers?

When it comes to Riot Games, we were previously their global billing and payment solution provider. However, in 2016, they developed Riot Pay and began managing their own billing system. We are continuously overseeing their regional operations in Korea, supporting their billing and payment solutions for Blizzard and Riot Games in Korea.

Attracting major companies requires a different strategy. While we do engage with larger players, our primary focus right now is on SMEs, where we can provide significant value through advanced billing and payment solutions.

For companies like Netflix and other global OTT platforms, the competition on the payment side largely comes down to transaction fees. Payment processing involves various costs depending on the method—credit cards, PayPal, or other alternatives—so these companies constantly evaluate cost efficiency. However, beyond just transaction fees, there are intangible values that matter—such as security, compliance, and seamless user experience. At Payletter, we aim to enhance these intangible values alongside financial efficiency, making our solutions more than just a cost-saving measure.

Before 2016, you were a global leader in billing and payment solutions for Riot Games. As the market evolved, so did your strategy, as you’ve explained. Today, you’re tailoring your services to better fit the current landscape. Could you elaborate on your relationship with clients? What specific factors drive them to choose Payletter, and what added value do you bring to the industry?

Payletter’s value extends beyond numbers. Our strongest assets are our accumulated know-how and the trust we’ve built over the years. We have an exceptionally low churn rate, meaning clients stay with us for the long term. This trust—established through years of delivering reliable services—is a key differentiator.

Additionally, our extensive data expertise allows us to offer highly specialized solutions. The depth of insight we’ve gained from handling complex billing and payment needs gives us a competitive edge. This combination of trust, expertise, and data-driven solutions is what sets Payletter apart in the industry.

A significant portion of your team is dedicated to developing new tools and adapting to market changes. Can you share what you are currently working on to enhance your existing products?

I’m afraid I can’t provide specific details on ongoing developments, but I can outline our broader approach. Large companies like Netflix and Riot Games often find it more efficient to develop their own payment systems and work directly with local payment providers. This is why GlobalPayOneQ may not always align with their needs. As I mentioned earlier, fees play a major role in their decision-making process. In the long run, these large enterprises are likely to transition to their own proprietary payment solutions, which is why our focus is shifting toward SMEs and emerging businesses that need robust billing infrastructure.

A great example is the music industry. We provide billing and payment solutions for major Korean music streaming platforms like Genie and Melon. Our system is widely recognized for its security and ease of use. When comparing our system to Apple’s, for instance, we’re not looking to compete directly with Apple. Instead, our strength lies in our deep industry knowledge and expertise in handling complex revenue distribution. Our goal is to provide a seamless and secure billing experience, particularly for smaller companies that lack the resources to develop their own comprehensive solutions.

Korea has been at the forefront of new broadcasting technologies, with smaller companies rapidly growing into major players. From an international perspective, do you see similar opportunities outside of Korea with newly established companies?

Simply put, the answer is yes. While there are many smaller global payment companies, Payletter has built a strong reputation over the years, particularly for security and reliability in billing and payment solutions. As a result, we are receiving increasing interest from international companies.

Interestingly, Payletter isn’t widely recognized in the B2C market, so we are sometimes surprised when consumer-focused companies approach us. However, within the billing and payment industry, we are well known and highly trusted. We have considered establishing branch offices in other countries, but for now, our strategy is to strengthen our position in Korea and expand outward. Currently, we are focusing on both B2B and B2C markets as we continue to grow.

Earlier, you mentioned that your initial expansion was into Southeast Asia. Is this still a key region for your growth? Given the massive number of mobile users and the significantly higher volume of microtransactions compared to Western markets, it seems like an ideal fit.

To answer this, I’d like to bring up the MLM (multi-level marketing) and Direct Selling market. Due to the high frequency of API calls, we recognize that mobile technology in Southeast Asia is highly advanced. However, rather than just focusing on transaction volume, we are actively looking for industries where we can truly leverage our expertise in billing and payment solutions. That’s why we are expanding into the MLM and Direct Selling market with our compensation engine.

Additionally, we are currently developing technology solutions to extend to the South East Asian market where we see great potential. These developments are still in progress, but we are confident that our expertise will allow us to make a significant impact.

That leads us perfectly into the MLM and Direct Selling software you provided to a U.S.-based cosmetics company, in 2023. As you mentioned, this is an adjacent area within fintech but a very different type of solution. What made you decide to take on this project, and do you see this as a direction you will continue to pursue in the future?

It all comes down to complexity—how intricate the transactions are, how many stakeholders are involved, and how revenue is split among them. The more complex the layers of stakeholders and service providers, the greater the need for a sophisticated billing and payment system. That’s where our expertise comes in.

Your question directly aligns with our future direction. The MLM and Direct Selling industry involves a vast network of stakeholders at different levels, and it is only going to grow further. That’s why we are confident in our ability to handle these intricate structures.

For service providers, integrity and trust are paramount. Every transaction, down to the smallest fraction of a payment, must be precise. We have built a strong reputation in this area, and when potential clients see our track record, they gain confidence in our ability to manage these complex financial operations. We believe the MLM and Direct Selling industry is the right market for us to expand into, and we are committed to further developing our solutions in this space.

I think it’s fascinating to view payment systems through the lens of the future, especially as we move toward decentralized frameworks and Web 3.0. In these models, numerous stakeholders collaborate on a single project while each maintaining ownership over different parts. Given this, do you foresee accepting alternative forms of payment, such as cryptocurrency or direct payments in platform currencies?

We initially stepped into the MLM and Direct Selling market due to the rise of  Soop Live (formerly known as AfreecaTV), most named live streaming service in Korea. Soop has its own cyber-cash system called Star Balloons, which has been in place for over a decade. The entire process—from acquiring Star Balloons as digital currency to cashing them out as real money—can, in theory, be applied to cryptocurrency as well.

However, cryptocurrency cash-out systems are currently highly regulated. From a technological standpoint, we already have the capability to support these transactions. The limitation isn’t our technology but rather the regulatory environment. That said, based on our extensive experience and data, we have developed the necessary infrastructure. When the time is right, we will be able to leverage our expertise and seamlessly integrate our technology into new solutions. This is precisely what we are doing in the MLM and Direct Selling market today.

How complex is it to implement your solutions on top of existing systems? You’ve also emphasized that you don’t focus on simple billing solutions—you take on the most challenging aspects. How do you support your clients through these transitions?

I’m not sure if this fully answers your question, but one of the most critical aspects of Soop’s system is that it operates in real time. Transactions need to be processed instantaneously, which makes transaction speed a top priority. This is where our technology plays a crucial role.

Beyond speed, another key challenge is calculating revenue distribution—determining exactly what percentage of Star Balloons’ value goes to the platform, the streamer, and other stakeholders. Transparency in this process is essential. So, in summary, two core values are fundamental: transaction speed and full transparency in revenue allocation.

Additionally, our extensive experience working with diverse clients across various industries has given us deep industry insights. The first step in any implementation is understanding the client’s business and their specific value proposition. Once that foundation is established, we move to migration, which involves both technical and business transitions.

Our team is highly experienced in these migration processes. We have well-defined operational manuals, troubleshooting expertise, and a deep understanding of industry-specific challenges. While technology and feasibility are the baseline, what truly sets us apart is our team’s expertise and hands-on experience in handling complex transitions.

The purpose of this report is to bring together leaders in Korea’s ICT sector, particularly in FinTech, to share insights from the field. In just one or two sentences, what would you like our readers to take away from your contribution?

I would like readers to recognize Payletter as the world’s leading partner for digital content billing and payment solutions.

For more information please visit: https://www.payletter.com/en/