Passorder

About Passorder

Paytalab Inc., operating under the brand Passorder, is a key player in the digital transformation of the food and beverage sector, specifically targeting the cafe market in South Korea. The company was established on February 28, 2018, by CEO Gwak Su-yong. Paytalab was founded to address the operational challenges faced by small and medium-sized business owners, such as rising labor costs and stagnant sales. The firm's name, a portmanteau of "Pay," "Data," and "Lab," reflects its core mission to simplify payment processes and analyze transaction data to provide valuable insights to both consumers and merchants.

The company's flagship product, Passorder, is a mobile smart ordering application that enables customers to pre-order and pay for their beverages from a wide array of local and franchise cafes. This non-contact ordering and payment solution was designed to bring the efficiencies of smart order systems, previously exclusive to large chains, to smaller independent cafes. For cafe owners, Passorder integrates seamlessly with existing point-of-sale (POS) systems without requiring additional hardware, offering a low-barrier entry to digital operations. A key aspect of its business model is the 0% commission on brokerage fees for store owners, aiming to foster a mutually beneficial relationship. For consumers, the app provides convenience through features like one-touch reordering, unified loyalty point accumulation across all brands, and the ability to order collaboratively with others.

Financially, Paytalab has demonstrated significant growth and attracted substantial investor confidence. The company concluded its Series A funding round in December 2020, led by Lotte Ventures. This was followed by a successful Series B round in February 2022, which raised 12.1 billion won, oversubscribing its initial 10 billion won target within a month. By September 2023, the company had surpassed 20 billion won in cumulative investments, signaling strong market validation. This funding is being channeled into national expansion and service enhancement, with the goal of building an ecosystem that connects small business owners with customers through data. Passorder has gained considerable traction, with a reported 86% re-order rate and, at peak times like morning commutes, processing up to 559 drink orders per second.