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Photo: Toss |
[Alpha Biz= Paul Lee] The rapid expansion of Toss Place payment terminals is prompting resistance from value-added network (VAN) operators, including Korea Information & Communications Co. (KICC), which are positioning Naver Pay as a counterweight to curb Toss’s growing influence.
KICC has refused to provide virtual terminal (vCAT) support or system integration for Toss Place since the product’s initial launch. While negotiations were initially possible, they broke down as legal disputes between the two sides escalated, effectively halting any integration.
The move reflects a strategic decision by KICC. In addition to payment processing, the company also operates a terminal business through its subsidiaries, a model shared by other major VAN firms. The entry of big tech players like Toss—combining payments and hardware—has heightened concerns among traditional VAN and POS providers.
KICC, with more than 40 years of industry experience and a broad merchant base, has been a key player in the market. Despite initial disadvantages in sales efficiency, Toss Place has rapidly expanded its footprint by partnering with other VAN operators and adopting a low-cost terminal strategy. It is currently integrated with 12 out of 13 VAN companies, excluding KICC.
With an intuitive user interface, ease of use, and competitive design, Toss terminals have expanded beyond small merchants to duty-free shops, gas stations, and franchise chains. The number of deployed units has surpassed 300,000. An increasing number of merchants are reportedly switching away from KICC to other VAN providers to adopt Toss terminals.
As Toss’s market influence grows, KICC has responded by filing patent infringement lawsuits related to terminal technologies. Industry observers view the legal dispute not merely as a patent issue but as part of a broader battle over control of payment infrastructure.
To defend market share, KICC and some VAN firms are strengthening their response strategy around Naver Pay’s “Connect” terminals. KICC has allowed integration with Naver Pay and is supporting its expansion, while some terminal distributors are actively promoting Naver Pay devices. Naver Pay, for its part, is positioning itself as a partner-friendly platform by collaborating with VAN and POS providers.
AlphaBIZ Paul Lee(hoondork1977@alphabiz.co.kr)
