South Korean location-based coupon application YAP plans to tap into more overseas markets in the near future and ramp up efforts to connect with offline platforms, its operator said Wednesday.

First introduced in 2014 as a pilot run, the app allows users to download coupons and discount information related to shops located near the users, including major franchises such as Jamba Juice. The service officially kicked off this month.

The application stands out from its rivals as it utilizes what it calls "hybrid beacon" technology, which automatically displays discount information when a user enters registered stores.

All smartphones with Bluetooth 2.1 are eligible to user the hybrid beacon service, YAP said.

"If the online platform brought about a new paradigm in commerce, the next paradigm-shift will be sparked by the combination of the online and offline segments, or O2O," YAP founder David Ahn said. "YAP is the combination of mobile devices and facilities at offline stores."

YAP also received 22 billion won ($18.4 billion) from Hong Kong-based New World Group in July, along with an additional 22 billion won from local investors.

YAP Company said it plans to launch the app in more foreign countries, including the North American and European markets. The service made its debut in Vietnam in February.

"After proving our business model through its release in China, we plan to export our platform to other continents as well," Ahn said, adding the service in Hong Kong-based Starbucks shops will launch in September.

YAP also has a Chinese-language edition for tourists visiting South Korea.

The application also supports various payment tools, including credit cards and mobile transactions, although the methods vary depending on different shops.

It currently boasts 3 million users, providing information on more than 100,000 shops.

The number of registered stores is set to reach 500,000 by the first half of 2016, it claimed.

YAP, whose name was inspired by the word "pay," said its aim is to provide various services related to making payments. (Yonhap)