Blame game intensifies over Mergepoint fiasco

[ad_1]

The blame between the financial authorities and Mergeplus, operator of discount applications intensified Monday, leaving customers who bought their coupons in advance in fear of losing money.

Mergepoint is an electronic payment service launched in 2018 by Mergeplus. Consumers can buy them at a 20 percent discount rate and use them at local retail franchises, convenience stores and coffee shops.

Due to its huge financial reward, the service has become extremely popular and has attracted around 1 million users. Monthly transactions averaged around 30 billion won ($ 25.6 million), according to industry data.

On Wednesday, however, Mergeplus changed its terms, limiting the use of its discount points to only food-related franchises such as restaurants and cafes, and announced that they would refund 90% of the money paid without specify when.

The change in the length of service was inevitable, they said, as the financial monitoring service suddenly asked them to register as an electronic financial service provider, not as an unlimited gift card provider. transaction size. Currently, an electronic financial service provider can sell prepaid products online for less than 2 million won per transaction.

Customers demanding full refunds have been hosting sit-ins at Mergeplus headquarters in Seoul since Friday. An online group for customers has already gathered more than 25,000 members. Some members of the group have started a legal review of a class action lawsuit against Mergeplus, according to insiders.

The company defended itself by saying it didn’t know it was supposed to register as an electronic financial service provider, and now it is in the process of complying with authorities. The FSS is also deflecting public criticism for failing to monitor the company’s legal ambiguity as a gift card provider in advance, as it has started a business that is inclined to be a electronic financial service three years ago.

Experts say the Mergepoint chaos shows a darker side to fast-growing e-commerce in the absence of a proper legal boundary to protect customers.

E-commerce businesses have grown rapidly in recent years. But many operators do not understand financial regulations, which has caused recent events, said Hwang Se-woon, a senior researcher at the Korea Capital Market Institute.

By Byun Hye-jin ([email protected])

[ad_2]