Date
January 8, 2024
Source
Byline Network (Korea)
A Different Approach to Mobile Data
What if your phone could automatically tell you which credit card to use for the best discount, right when you need it? Or warn you before clicking a malicious link in a text message? These seemingly different problems share the same technical foundation, and solving them is exactly what Fairytech set out to do.
Fairytech is a B2B SaaS company that provides SDKs to mobile app clients, helping them improve retention and collect user data for targeted push marketing. The company’s technology can detect which sites and apps users visit, enabling real-time, context-aware notifications.
The Core Technology
Fairytech’s SDK tracks user behavior, but with two key differences from conventional approaches.
First, consent matters. Unlike traditional methods that collected data indiscriminately through cookies, Fairytech obtains explicit user permission for data collection.
Second, privacy by design. The company collects only minimal data, such as which websites users visit, without accessing sensitive personal information.
This same underlying technology powers multiple use cases. When a user visits an e-commerce site, the system can push a notification about relevant credit card benefits. The same detection capability can identify phishing sites disguised as legitimate services and warn users before they click.
From Google to Startup
CEO Jang In-sun spent eight years at Google as a backend developer, working on Android, Search, Google Cloud, and TensorFlow. Five of Fairytech’s nine employees are former Google colleagues, including developers and a business director who previously handled Google Play advertising partnerships.
The idea emerged from a personal frustration. “I wanted to know which card benefits applied when I shopped, but memorizing all the promotions was impossible,” Jang explains. “I started coding a prototype at home, and when it actually worked, I decided to pursue it seriously.”
Working at Google taught Jang a crucial lesson: data is the foundation of great businesses. Google built platforms like Android, Chrome, and Search to naturally attract users, then leveraged that data for advertising. Fairytech aims to help other businesses, not just tech giants, collect and leverage data for growth.
Inspiration from Honey
The model that inspired Fairytech was Honey, the coupon and price-comparison service acquired by PayPal in 2019 for approximately $4 billion USD. Despite modest revenue, Honey commanded a massive valuation because 17 million Americans used the service.
Honey collects data on which sites users visit through Chrome browser extensions and automatically provides relevant promotion codes. PayPal, lacking its own search, shopping, or content platforms, acquired Honey to create touchpoints with users.
However, Honey operates only on desktop. Fairytech recognized that in Korea, mobile commerce far exceeds PC commerce, and no equivalent mobile solution existed. That gap became the company’s opportunity.
Four Service Lines
Fairytech offers four primary services built on the same core technology:
| Service | Target Clients | Function |
|---|---|---|
| Card Benefit Notifications | Credit Card Companies | Push alerts when users can maximize card rewards |
| Phishing Detection | Banks | Identifies and warns about malicious URLs across SMS, KakaoTalk, Telegram, email |
| Cashback Integration | Rewards Platforms | Enables one-click cashback activation within e-commerce apps |
| Coupon Alerts | E-commerce, Retail | Notifies users of available coupons before checkout |
The phishing detection capability addresses a gap in the Korean market. While researching competitors, Fairytech found that no domestic security company offered solutions for SMS smishing or KakaoTalk phishing. This differentiation helped secure banking clients.
Why Card Companies Care
Credit card companies excel at creating benefits but struggle to reach users at the right moment. Banner advertising requires a month of lead time and cannot distinguish between heavy card users and casual ones. Fairytech’s solution delivers real-time notifications that adapt as promotions change, creating direct touchpoints when users are ready to purchase.
Business Model and Traction
Revenue comes from SDK subscriptions, priced either per push notification or per user base. In 2022, Fairytech raised 1.3 billion KRW (approximately $1 million USD) from four investors including Infobank, based on the team’s Google pedigree and the novelty of the service.
Global Ambitions
International markets show similar needs. Payment companies and cashback platforms in the US and Singapore have expressed interest. The ultimate destination is the US market, but Fairytech plans to establish references in Singapore first. The English-speaking environment and straightforward business communication style make it an ideal testing ground.
“We’re in contact with several Singapore companies now,” says Jang. “We expect to share news by early 2024.”
Original Article
[Read on Byline Network (Korean)]