Coupon app YAP goes global with hybrid beacon tech

South Korean coupon app YAP said Wednesday it would expand its presence globally following launches in China and Vietnam.

Launched in June 2014, the location-based app allows users to download coupons or discount information when they are within range of Bluetooth-enabled devices, or beacons. The app also works as a mobile wallet.

Currently, more than 3 million people use the app and some 100,000 retailers have signed up for the service. The company aims to increase its business partners to 500,000 next year.

“We aim to become Asia’s No. 1 off-line-to-online platform operator,” said YAP founder and CEO David Ahn. 

The “off-line-to-online” platform industry is soaring recently as location-based apps such as those for taxi hailing and food delivery become popular among customers and businesses.

Distinguishing itself from its rivals, YAP uses its own “hybrid” beacon technology that better detects users’ smartphones and offers more specific information.

Its technological prowess has also helped it attract a combined 42 billion won ($35 million) in funding from investors -- the largest amount secured by a local start-up in the first half of this year.

The company attracted 22 billion won from New World Group, a Hong Kong-based retail giant, and more recently another 20 billion won from Special R&D Zone Fund, operated by DS Investment Consulting Group.

The company said it planned to enter more foreign markets, including in North America and Europe. But it would offer the service through local partners rather than directly launching the app there.

“After proving our business model in China and Hong Kong, we plan to enter other countries as well,” the CEO said.

He predicted the market for off-line-to-online platform business to hit 500 trillion won in sales next year. Of that, 240 trillion won is expected to be generated in Asia, with Korea making up some 10 percent of the Asian market.

By Lee Ji-yoon (jylee@heraldcorp.com)