South Korea Mobile Payment Market

South Korea Mobile Payment Market:

South Korea mobile payment market size is projected to exhibit a growth rate (CAGR) of 9.60% during 2024-2032. The rapid growth in smartphone usage among all age, along with the growing inclination towards online shopping, is bolstering the market.

South Korea Mobile Payment Market Analysis:

• Major Market Drivers: Partnerships between fintech startups, banks, and tech giants are becoming more common, aimed at offering value-added services and creating user-friendly interfaces, which is bolstering the market.
• Key Market Trends: Growing strong culture of online shopping and consumer preference for quick, cashless transactions in South Korea has accelerated the demand for mobile payment options, thereby augmenting the market growth.
• Competitive Landscape: Some of the prominent companies in the market include Kakao Pay Corp., Naver Corporation, NHN PAYCO Corp., Samsung Electronics Co. Ltd., SK pay, and Viva Republica Inc., among many others.
• Geographical Trends: Regulatory frameworks are expanding the market across the Seoul Capital Area, Yeongnam, Honam, and Hoseo regions. Yeongnam experiences growth with rising e-commerce activities. In contrast, Honam and Hoseo are improving as mobile payment infrastructure develops. Moreover, other regions are progressing, influenced by overall digital advancements.
• Challenges and Opportunities: The uneven adoption of mobile payment technologies across regions is hampering the market growth. However, expanding digital infrastructure and enhancing user education to build trust and familiarity with these technologies will continue to strengthen the market growth in the coming years.

South Korea Mobile Payment Market Trends:

Increase in Cross-Border QR Code Payments

Growing partnerships with international banks enable seamless QR code transactions for travelers, thereby enhancing convenience for foreign visitors in South Korea. This movement supports smoother cross-border payments, allowing international users to easily make purchases without the need for additional currency conversion processes. For example, in September 2024, Cambodia and South Korea initiated a cross-border payment system allowing Jeonbuk Bank customers to make QR code payments in Cambodia. This initiative aims to strengthen economic ties, boost trade and tourism, and promote financial inclusion between the two countries.

Launch of Mobile Payment Services for Tourists

Introducing mobile payment options specialized for foreign visitors, such as foreigner-only payment apps, simplifies transactions at popular tourist spots. These services, designed to meet South Korea mobile payment market demand, provide multilingual support, local currency use, and discounts, thereby boosting tourism by making financial transactions easier and more accessible for international tourists. For instance, in June 2024, Busan launched Busan Pay, the first foreigner-only mobile payment service in Korea, which offers tourists local currency payments, transportation options, and discounts at attractions, aiming to enhance tourism and provide a convenient, multilingual platform for foreign visitors.

Adoption of Digital Assets and Crypto Wallets

According to the South Korea mobile payment market analysis report, the launch of digital asset wallets integrated with blockchain technology allows South Koreans to manage cryptocurrencies securely. They enable users to store NFTs, use fan tokens, and engage with decentralized apps, thereby catering to tech-savvy consumers interested in digital finance innovations. For example, in August 2024, Naver introduced its first digital asset wallet, Naver Pay Wallet, in partnership with Chiliz, offering a non-custodial crypto wallet to manage digital assets, explore blockchain technology, and integrate loyalty programs, targeting tech-savvy users in South Korea.

South Korea Mobile Payment Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with the South Korea mobile payment market forecasts at the country and regional levels for 2024-2032. Our report has categorized the market based on the payment type and application.

Breakup by Payment Type:

• Proximity Payment 
  • Near Field Communication (NFC)
  • Quick Response (QR) Code
• Remote Payment 
  • Internet Payments
  • Direct Operator Billing
  • Digital Wallet
  • SMS Payments
     

The report has provided a detailed breakup and analysis of the market based on the payment type. This includes proximity payment (near field communication (NFC) and quick response (QR) code) and remote payment (internet payments, direct operator billing, digital wallet, and SMS payments).

Mobile payment options include proximity payments like NFC and QR codes for quick, contactless transactions and remote payments, such as internet payments, direct operator billing, digital wallets, SMS payments, etc., for convenient online purchases. These advancements reflect the positive South Korea mobile payment market outlook, thereby highlighting a growing trend towards diverse and efficient payment methods.

Breakup by Application:

• Entertainment
• Energy and Utilities
• Healthcare
• Retail
• Hospitality and Transportation
• Others
   

The report has provided a detailed breakup and analysis of the market based on the application. This includes entertainment, energy and utilities, healthcare, retail, hospitality and transportation, and others.

Mobile payments are increasingly integrated into sectors, such as entertainment, energy, utilities, healthcare, retail, hospitality, and transportation, thereby streamlining transactions and improving efficiency across multiple aspects of consumer and business interactions. This widespread adoption is shaping the South Korea mobile payment market share, highlighting its growing influence and importance across various industries.

Breakup by Region:

• Seoul Capital Area
• Yeongnam (Southeastern Region)
• Honam (Southwestern Region)
• Hoseo (Central Region)
• Others
   

The report has also provided a comprehensive analysis of all the major regional markets, which include Seoul Capital Area, Yeongnam (Southeastern Region), Honam (Southwestern Region), Hoseo (Central Region), and others.

According to the South Korea mobile payment market outlook report, the Seoul Capital Area demonstrates high usage due to advanced infrastructure and tech-savvy consumers. Furthermore, Yeongnam is experiencing steady growth driven by rising e-commerce activity and increasing digital transactions. In addition to this, Honam and Hoseo are catching up as mobile payment infrastructure continues to develop, improving regional accessibility. Meanwhile, other regions are also seeing growth as digital payment solutions become more widespread, making transactions more seamless. Overall, each region contributes to a more connected and efficient financial landscape, enhancing convenience for all users.

Competitive Landscape:

The South Korea mobile payment market research report has also provided a comprehensive analysis of the competitive landscape in the market. Competitive analysis, such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant, has been covered in the report. Also, detailed profiles of all major companies have been provided.

• Kakao Pay Corp.
• Naver Corporation
• NHN PAYCO Corp.
• Samsung Electronics Co. Ltd.
• SK pay
• Viva Republica Inc.
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

South Korea Mobile Payment Market Recent Developments:

• September 2024: Cambodia and South Korea initiated a cross-border payment system allowing Jeonbuk Bank customers to make QR code payments in Cambodia. This initiative aims to strengthen economic ties, boost trade and tourism, and promote financial inclusion between the two countries.
• August 2024: Naver introduced its first digital asset wallet, Naver Pay Wallet, in partnership with Chiliz, offering a non-custodial crypto wallet to manage digital assets, explore blockchain technology, and integrate loyalty programs, targeting tech-savvy users in South Korea.
• June 2024: Busan launched Busan Pay, the first foreigner-only mobile payment service in Korea, which offers tourists local currency payments, transportation options, and discounts at attractions, aiming to enhance tourism and provide a convenient, multilingual platform for foreign visitors.

South Korea Mobile Payment Market Report:

Key Questions Answered in This Report:

• How has the South Korea mobile payment market performed so far, and how will it perform in the coming years?
• What has been the impact of COVID-19 on the South Korea mobile payment market growth?
• What is the breakup of the South Korea mobile payment market on the basis of payment type?
• What is the breakup of the South Korea mobile payment market on the basis of application?
• What are the various stages in the value chain of the South Korea mobile payment market? 
• What are the key driving factors and challenges in the South Korea mobile payment?
• What is the structure of the South Korea mobile payment market, and who are the key players?
• What is the degree of competition in the South Korea mobile payment market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the South Korea mobile payment market from 2018-2032. 
• The research report provides the latest information on the market drivers, challenges, and opportunities in the South Korea mobile payment market. 
• The study maps the leading, as well as the fastest-growing, markets. It further enables stakeholders to identify the key country-level markets within the region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the South Korea mobile payment industry and its attractiveness. 
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.