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Mobile wallet payments in South Korea to surpass $500B by 2024

As the country’s cash use continues to decline, consumers are increasingly switching to mobile wallets for both online and in-store payments

mobile wallet South Korea

Mobile wallet payments in South Korea to surpass $500B by 2024. Source:
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The mobile wallet transaction value in the South Korea is expected to reach $503.5 billion in 2024, according to GlobalData.

The continuous COVID-19 pandemic has sped up the acceptance of mobile wallets in the country.

South Koreans are well-accustomed to mobile wallets, with the country ranking one amongst the top globally, in terms of per capita spending using mobile wallets. High smartphone and Internet penetration, coupled with the government's push towards cashless transformation have supported this growth
Sowmya Kulkarni, Banking and Payments Analyst at GlobalData

Consumers are progressively choosing to pay via mobile wallets for the reason of contracting the virus fear with the use of cash and cards, the report states.

To take advantage of this growing opportunity, tech companies, payment service providers and even mobile device manufacturers have launched various mobile payment solutions.

Kakao Pay is the most popular mobile wallet brand with a customer in the quantity of 34 million. It’s followed by Samsung Pay, which has around 19 million customers. Other popular mobile wallet brands in the country are Toss, Naver Pay, L.pay, and LG Pay.

The growing adoption of QR-based payments by merchants also stimulates the use of mobile wallets in South Korea. QR code payments are heating up in Asia and this can be seen in South Korea.

For example, the Seoul Metropolitan Government is partnering with local banks to offer Zero Pay, a QR-based mobile payment option for merchants. This allows small merchants with an annual turnover of less than $0.69 million to accept mobile payments without any transaction fees.

We’ve reported that Klarna entered into another collaboration to push its payment solution.

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