South Korea Mobile Payment Market Size

South Korea Mobile Payment Market Analysis

The South Korea Mobile Payment Market size is estimated at USD 40.67 billion in 2024, and is expected to reach USD 62.96 billion by 2029, growing at a CAGR of 9.13% during the forecast period (2024-2029).

The South Korean mobile payments market is driven by the expanding e-commerce market, increasing emphasis on QR code-based mobile payments, coupled with businesses nationwide making their payment methods mobile-friendly. In addition, the presence of major market vendors coupled with the growing penetration of foreign market vendors in the country results in market growth.

• South Korea has seen a surge in the adoption of mobile payment systems in the past few years, with many consumers opting for contactless payment options over traditional credit cards. Further, market vendors are focusing on providing a fast, secure, and convenient way to pay for goods and services, thus accelerating the growth of digital payments in the country, and could help market vendors to gain significant traction in the rapidly-evolving digital payment space.
• People are used to shopping online, and the economy is performing well. Its economy has proved remarkably resilient during the most challenging of times. Further, The IMF predicted that GDP would likely expand at a rate of 2.5% in 2022, rising to 2.9% in 2023. The average South Korean earns USD 32,390 yearly, just USD 1,807 less than the average EU citizen.
• The country's e-commerce market is another factor driving its growth, with consumers adopting mobile payment services from various market vendors to make their purchases. According to an article published in ppro.com, in May 2022, E-commerce accounts for 8% of all retail sales in South Korea, while 65% of all online purchases are completed on a mobile device.
• Further, the booming e-commerce and smartphone penetration attracting various global mobile payment vendors to launch their services in the country, thus positively impacting the market growth. For instance, in February 2023, British fintech firm PPRO launched its international digital payments infrastructure in South Korea. The fintech has incorporated its service with South Korean local cards and e-wallets Toss Pay. Toss Pay, the company's e-wallet solution makes purchasing using a card or an account linked to the Toss app easier.
• The COVID-19 pandemic further accelerated the expanded digital payments landscape in the country, thus positively impacting market growth. During the outbreak, consumers increasingly opted for contactless payments via mobile wallets or e-wallets due to fear of getting exposed to the COVID-19 virus through cash handling. Many retailers, restaurants, and public transport networks started accepting mobile payments.