Countries Covered: South Korea
Publication Date: 13/10/2020
Questions Covered in the report:
- How did the COVID-19 pandemic affect the number of mobile transactions in South Korea?
- What are the amounts of transactions completed via the top Payment Service Providers (PSPs) in South Korea during the COVID-19 crisis?
- Which Payment Service Providers (PSPs) in South Korea received increased user registrations to their platforms during the health crisis?
- What were the top mobile payment service providers in South Korea?
- What was the mobile payment user penetration in South Korea before the COVID-19 pandemic?
COVID-19 has accelerated the adoption of mobile payment methods in South Korea
Transactions made through mobile payment methods increased in South Korea during the COVID-19 pandemic
Mobile payments were particularly popular in South Korea even before the COVID-19 outbreak, accounting for a high penetration value in 2019. The practice of using mobile payment services was further boosted due to the nature of the nationwide COVID-19 lockdown. In an effort to combat the spread of COVID-19, consumers in South Korea turned to online shopping to supply their basic needs. According to a study cited by yStats.com, South Korea has seen a double-digit increase in transactions made via mobile payments in 2020 compared to 2019.
Top mobile PSPs in South Korea experience increased registrations during the health crisis
The top three mobile payment service providers in South Korea, in terms of the number of users are KakaoPay, Naver Pay, and Toss. These top players recently experienced a growing number of users on their platform. As reported by yStats.com, KakaoPay saw a significant increase in its users amidst the COVID-19 crisis. Amidst the overwhelming growth of users and transactions, service provides have introduced innovations to aid small businesses adversely impacted by the health crisis.
Amidst the pandemic, new mobile payment gateways emerge in South Korea
Since the use of mobile payment is increasing in South Korea, further developments in the payments industry have gained momentum. During the pandemic, various mobile payment service providers are emerging as strong competitors such as Samsung Pay, Payco, and Coupang. Furthermore, a report cited by yStats.com stated that Samsung collaborated with MasterCard to launch Samsung Pay Card in an effort to provide its customers with an innovative service. Another important report mentions a partnership between Payco and Apple that will support mobile payments via Payco on iOS-powered devices.