Fintech firm Toss acquires Merchant Korea to enter MVNO industry

Fintech firm Toss acquires Merchant Korea to enter MVNO industry

by Sakina Raj

Toss, a leading Korean fintech firm, has reportedly acquired Merchant Korea, a mobile virtual network operator (MVNO), that offers wireless communication services to customers at lower retail prices.

On Thursday, the fintech app owner revealed that it has inked a share purchase deal with Merchant Korea to buy 100% stakes in the company.

Since its inception in 1998, Merchant Korea has been providing MVNO services by renting wireless capacity from the three main telecom network providers in the nation at wholesale prices and selling it back to customers at a discounted price under its ‘MyWorld’ brand.

Toss plans to add the latest search and subscription feature to its fintech app after the acquisition to provide clients with the best MVNO service plans. According to the company, the new feature should streamline and innovate the MVNO membership process for customers while also enabling them to lower their telecom costs.

Since the service was introduced in the nation in 2011, about 70 MVNO companies have been established. Over 10 million people were using MVNO wireless network plans as of the previous year.

The average monthly amount that households spent on telecommunications services reduced by barely 10% in 2021 compared to 2010, despite a surge of MVNO firms since 2011.

The decline is slightly disappointing as compared to peer countries across the globe. The Electronics and Telecommunications Research Institute (ETRI) reports that in the five years after the implementation of the business model there, the U.S. saw a 61% decrease, the U.K. a 45% decrease, and Denmark a 50% decrease.

Viva Republica, the owner of Toss, also stated that it had been successful in obtaining investment worth 300 billion ($229 million).

The firm's corporate worth is estimated to be 8.5 trillion ($6.4 billion), a small uptick over the 8.2 trillion ($6.2 billion) projection made during the previous investment round in June of last year.

Source credit: https://www.koreatimes.co.kr/www/biz/2022/07/126_333141.html

Sakina Raj

Armed with a degree in English Literature, Sakina chose to explore the world of content writing and pursue it as a career. Sakina has been playing with words for over five years now and currently pens down articles for Marketprimes and various other online portals relating to diverse domains. Whe Read more...