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