Kakao Pay has reduced its mistaken transfer refund processing time to about one-third of the previous level through a computerized linkage system built with Shinhan Bank. By automating complex manual procedures, the company has significantly accelerated processing speed and improved user convenience, according to industry observers.
Kakao Pay said Tuesday that it shortened its average processing time from 18.2 days to 5.4 days after introducing the computerized linkage for mistaken transfer refunds with Shinhan Bank in December 2024. The time required for refunds has been cut to about one-third of the previous duration.
Until now, the mistaken transfer refund process has relied heavily on manual work. When a user filed a refund request, the platform operator had to print related documents in each bank's format and submit them in writing. The bank would then verify the documents and convey the refund request through the Korea Financial Telecommunications and Clearings Institute network. The repeated process of document delivery and verification inevitably extended processing times.
To address this, Kakao Pay and Shinhan Bank built a real-time data linkage system through a value-added network (VAN) provider. Mistaken transfer information is now transmitted electronically in real time, while the verification of refund details and deposit processing have also been automated based on firm banking. This computerized automation currently applies mainly to users who choose account-based refunds. Kakao Pay plans to expand the scope of linkage to other financial institutions going forward.
"Mistaken transfers are mistakes anyone can make, so we judged that the recovery process should not become another burden for users," a Kakao Pay official said. "Starting with this preemptive computerized linkage with Shinhan Bank, we will do our best to ensure that all users can use financial services with greater peace of mind."
