KakaoPay Swings to Q1 Profit! Transaction Volume 44.2 Trillion, Financial Revenue Soars 60%

Kakao Pay successfully turned a profit in Q1 2025, finally firing the signal flare for a dazzling performance rebound. Setting a long-awaited milestone, Kakao Pay recorded a consolidated transaction volume (TPV) of KRW 44.2 trillion (up 8% year-on-year) and revenue of KRW 211.9 billion (up 20.2% year-on-year), demonstrating performance that exceeded expectations. In particular, it achieved a consolidated operating profit of KRW 4.4 billion and a net profit of KRW 14.4 billion, proving robust profitability. The main drivers of this growth were undoubtedly offline and overseas payments. Payment service transaction volume increased by 7%, with offline payment transaction volume surging by a remarkable 42%, driving explosive growth. Overseas payments also grew by 20%, demonstrating global expansion potential. Furthermore, financial services have established themselves as Kakao Pay's new growth engine. While loan and remittance services grew by 7% and 8% respectively, financial service revenue reached KRW 80.2 billion, marking an astonishing growth rate of 60.5%. This accounted for 38% of total revenue, solidifying its status as a core revenue source for two consecutive quarters. Other service revenue, including card recommendation and advertising services, also increased by 47.8%, contributing to performance improvement. On a separate basis, Kakao Pay achieved an operating profit of KRW 13.6 billion and a net profit of KRW 21.1 billion, maintaining a solid surplus trend. Most significantly, it dramatically improved financial soundness by converting accumulated deficits, which were in the KRW 200 billion range at the end of 2021, into KRW 20.7 billion in retained earnings. The performance of its subsidiaries was also outstanding. Kakao Pay Securities achieved a surplus for two consecutive quarters, bolstered by a 58% increase in revenue. Kakao Pay General Insurance is rapidly expanding its market base by successively launching domestic travel insurance and child insurance, following its overseas travel insurance. These Q1 results appear to be a green light signaling Kakao Pay's successful transition from a simple payment service to a comprehensive financial platform, and a significant turning point towards robust and sustainable growth.