South Korea’s payment cards market is well developed and has been on sustained growth for the past few years
GlobalData has found that high banked population, developed payment infrastructure and high financial awareness, has resulted in high card penetration and usage in South Korea. This way, the card payments market is set to rebound and with 5.3% growth in 2021.
According to data, the value of card payments in South Korea is forecast to register a compound annual growth rate of 4.9% between 2020 and 2024 to reach $1.0 trillion in 2024.
Credit card is the preferred payment card in the country due to pricing benefits it offers. Nevertheless, debit cards usage is gradually increasing, from 20.2% in 2016 to 21.4% in 2021.
Growth in debit card usage has been supported by government tax benefits. Debit cardholders have got tax deduction of 30% on their debit card expenditure – double the equivalent for credit cards. This has been further increased to 60% in June 2020 as a relief measure due to COVID-19.
We’ve reported that Stripe introduced tax compliance tool.