Joshua D'Costa
Growth & Marketing
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5
min
In early 2025, South Korea had 97.4% internet penetration (over 50 million users) and 134% mobile subscriptions of its population. Cash is almost obsolete, around 10-15% of point-of-sale transactions and QR‑code payments being used everywhere. Local wallets like KakaoPay, NaverPay, and Samsung Pay are dominating domestic payments.
Source: Wikipedia
But as tech leaders know, local strength isn’t global reach. Local Services work great within Korea, but won’t convert customers abroad who use different apps and currencies. They need a way to accept international payments, taxes, and compliance seamlessly.
A Merchant of Record (MoR) service like Dodo Payments can be that bridge. It can legally become the seller in each targeted market, handling payment processing, taxes, and even disputes on your behalf.
The South Korean Payment Ecosystem
South Korea’s domestic payment scene is advanced: virtually everyone uses digital payments and mobile wallets.
Credit/Debit Cards – Still important. By law, cards and wallets dominate shopping, not cash.
Mobile Wallets & Apps – KakaoPay, NaverPay, Toss, Samsung Pay, etc. South Koreans are power users: smartphone penetration tops 95%, and over 75% of online sales are mobile-enabled.
These local wallets integrate with banking and e-commerce sites to make checkout painless. South Korea’s digital payments market is expanding from USD 3.54 billion in 2024 to USD 17 billion by 2035.
QR Codes & T‑Money – Nearly everyone has used a QR payment at least once. Cash is rare, while QR/pay apps cover street vendors, shops and transit.
These homegrown options and “super‑apps” serve Koreans extremely well, but none of them work outside Korea.
This is where a global Full-Stack Merchant of Record shines: it brings local options to global customers. With an MoR, a Korean SaaS can offer each market its preferred methods.
For example, Dodo Payments can enable region‑specific payment methods and currencies for buyers around the world. In effect, your checkout can feel “local” everywhere, not just in Seoul.
Advantages of a Merchant of Record
This is where a Merchant of Record solution shines. Using an MoR brings several game-changing benefits:
Rapid Market Entry: An MoR essentially becomes the local seller in each country, so you don’t have to incorporate abroad. This saves the time and cost of setting up subsidiaries. You get launched into a market immediately.
Localized Currency & Payments: Customers buy more when they pay in their currency with familiar methods. Offering a local payment method or local currency at checkout dramatically increases trust and conversions.
In practice, an MoR lets you show prices in EUR to Germans, Yen to Japanese, accept iDEAL in the Netherlands or Alipay in China – just as if you were a local business.
Simplified Finances & Cash Flow: Revenue from all markets flows through the MoR platform, which handles conversions at competitive rates. This means more predictable cash flow and less lost revenue to FX spread.
The MoR essentially absorbs currency risk and negotiation. Payouts are then made to you in your preferred currency on a schedule, rather than you chasing transfers across borders.
Full-Stack Compliance & Chargeback Handling: It collects and remits taxes for you in each jurisdiction and ensures payment compliance by default. It even handles refunds and chargebacks under its merchant ID.
This means no surprise tax audits or forgotten filings – the MoR’s platform automates filings and remittances.
How Dodo Payments Helps You to Go Global
Here’s how Dodo Payments addresses the needs of Korean founders:
One Integration, Global Reach:
One API integration and Dodo instantly opens up payment acceptance worldwide. You can accept payments in 150+ currencies and enable localized methods across markets.
This single integration saves months of development time compared to hooking up dozens of local gateways.
Automated Tax & Compliance:
Dodo takes care of all tax obligations, including VAT and GST, so you don’t have to. Our automated compliance system ensures that your business stays compliant with Korean taxes and international regulations.
Localized Payment Experience:
The platform is designed to boost conversions. Dodo Payments supports region-specific payment methods.
For example, Japanese customers can pay with Konbini or JCB; Indians with UPI; Brazilians with Pix – all without you having to integrate each one. This familiarity is key to winning new customers.
Transparent Pricing:
Dodo Payments collects worldwide payments on your behalf and lets you withdraw funds in your preferred currency.
This means you can predict your revenue and cash flow accurately as you expand. Dodo Payments aims for fast settlements, and its platform keeps you informed of every transaction, fee, and exchange rate.
No Local Entity Required:
Since we are the official seller in each country, your business never has to register a foreign company. You can start selling to new regions immediately while Dodo Payments handles the legal presence and agreements.
Dodo Payments effectively combines all the international payment infrastructure into a single service. South Korean SaaS companies can trust that their customers anywhere will see a smooth, local-friendly payment process, while Dodo quietly handles compliance and security behind the scenes.
Final Thoughts
Expanding your business internationally with a Merchant of Record like Dodo Payments, you can:
Concentrate on growing your business rather than navigating through regulatory hurdles.
Eliminate the complexities of opening foreign bank accounts or establishing offshore companies.
Experience quicker, seamless payouts without the stress of compliance issues.
Increase your international footprint and simplify your operations, giving you more time and resources to focus on expanding your business.
Transform your business with Dodo Payments and easily access global markets.
Make the move and expand your business beyond borders.
