South Korean internet giant Naver has officially entered the web3 space, announcing the launch of its first digital asset wallet, Naver Pay Wallet, in collaboration with Chiliz, a leading blockchain provider for the sports and entertainment industries. This move marks Naver’s foray into the burgeoning web3 market, integrating blockchain technology into its existing services.
Naver Pay Wallet: A New Era in Digital Transactions
Naver Pay, a widely used mobile payment service in South Korea, has introduced its non-custodial crypto wallet, Naver Pay Wallet. Unlike traditional custodial wallets, this new offering gives users full control over their private keys and digital assets, ensuring a higher level of security and autonomy.
“The Naver Pay Wallet is designed not just as a typical crypto wallet, but as a service centered around utility and loyalty blockchain technology,” said Alexandre Dreyfus, founder and CEO of Chiliz, in an interview with TechCrunch.
Expanding Utility with Blockchain Technology
Naver Pay is already a staple in South Korea, with over 97,000 merchants using the platform for online and offline transactions. The introduction of the Naver Pay Wallet provides a valuable testing ground for potential loyalty programs that could leverage Chiliz’s blockchain technology. According to Dreyfus, this integration could enhance the value proposition for merchants within the Naver ecosystem.
Currently in its beta phase, the digital asset wallet allows Naver’s 33 million users to manage their digital assets, including storing NFTs. The wallet is also expected to expand its capabilities, including integration with decentralized apps, fan tokens, and a loyalty program specifically designed for Naver’s extensive merchant network.
Targeting Tech-Savvy South Koreans
“The target customers are tech-savvy South Koreans who are already using Naver Pay for digital transactions and are interested in exploring blockchain technology, particularly in the areas of sports, entertainment, and digital assets,” Dreyfus explained.
Naver Pay Wallet is poised to compete with other Korean digital payment platforms that are also exploring blockchain integration. However, Naver’s massive user base gives it a significant advantage, positioning the company to potentially dominate the market as South Korea’s equivalent of Google Pay or Apple Pay.
A Strategic Partnership with Potential for Expansion
The partnership between Naver and Chiliz is strategic, with no direct investment involved, according to Dreyfus. Initially, the Naver Pay Wallet will support the Chiliz Chain, but Naver has plans to potentially integrate additional blockchains in future updates. This flexibility could further broaden the appeal of Naver Pay Wallet, making it a central hub for digital asset management in South Korea.
Naver’s move into the web3 space reflects a broader trend among tech companies looking to leverage blockchain technology to enhance their product offerings. With Naver Pay Wallet, the company is not only stepping into the future of digital transactions but also laying the groundwork for mainstream blockchain adoption in South Korea.
