The increasing preference for touch-free transactions and online shopping has been evident in South Korea throughout the COVID-19 pandemic. While this trend benefits payment processing companies, the payment market is notably fragmented, creating a complex and lengthy process for businesses seeking to integrate various payment methods. CHAI is addressing this challenge with an API designed to facilitate acceptance of more than 20 different payment systems. The company, headquartered in Seoul, recently announced the completion of a $60 million Series B funding round.

Hanhwa Investment & Securities spearheaded the investment, with contributions from SoftBank Ventures Asia (the venture capital division of SoftBank Group focused on early-stage investments), SK Networks, Aarden Partners, and several other strategic investors. This latest funding brings the total capital raised by CHAI to $75 million, building upon a $15 million Series A round secured in February.

Data released last month by the Bank of Korea, the nation’s central bank, indicated a 17% year-over-year increase in contactless payment usage since the onset of the COVID-19 pandemic.

CHAI provides services to online retailers through its I’mport API, which streamlines the acceptance of payments from over 20 sources. These include debit and credit cards via local payment gateways, various digital wallets, bank transfers, mobile carrier billing, and PayPal. Currently, 2,200 merchants utilize I’mport, including prominent brands like Nike Korea and Philip Morris Korea.

According to CHAI’s chief executive officer, Daniel Shin, businesses typically face significant integration efforts when adding new online payment options. I’mport substantially reduces this burden for its customers.

The company also provides its own digital wallet and debit card, known as the CHAI Card, which was introduced in June 2019. It currently has 2.5 million users, a figure that remains smaller compared to the leading digital wallet services in South Korea, such as Samsung Pay, Naver Pay, Kakao Pay, and Toss.

“Although CHAI entered the Korean digital payments market as a later entrant, we identified a distinct opportunity to deliver substantial value,” Shin stated. The CHAI Card offers merchants reduced transaction fees and encourages frequent user engagement, with customers checking the app approximately 20 times to view new cashback promotions and other rewards tied to card and digital wallet usage.

“We have successfully translated the traditional plastic card experience into a digital format, and this represents the initial phase in developing a comprehensive online rewards platform,” Shin explained.

In a press release, SeungYoung Oh, a director at Hanhwa Investment & Securities, commented, “I’mport has transformed a process that previously required weeks for e-commerce businesses into a straightforward copy-and-paste operation, resulting in significant cost savings. This is a pioneering business model in Korea, and I am confident that CHAI will continue to expand this service into a vital component of the global fintech ecosystem.”