Forecast: Number of Cards with an E-money Function in South Korea

The number of cards with an e-money function in South Korea exhibited various trends over the past decade. Starting with a robust growth in 2013 and 2014, the market experienced a substantial increase in the number of e-money cards with year-on-year growth rates of 10.86% and 10.44% respectively. However, this growth started to decelerate in the following years, with a notable decline in 2017 and 2018 (-2.84% and -2.26% respectively). A significant drop occurred in 2020 with a -16% variation.

During 2021, a dramatic increase of 27.98% was observed, marking the strongest year-on-year growth in recent history. This was potentially driven by a revival in consumer demand for digital payment solutions amid a recovering economy. However, the numbers slightly dipped again in 2022 with a growth rate of -3.68%.

In 2023, the value of cards with an e-money function stood at 28.76 million units, reflecting a modest growth rate of 1.1%. Considering the period from 2017 to 2023, the CAGR was 1.49%, indicating a relatively stable but slow growth trend. Looking ahead, the forecasted data predicts a steady increase in the number of e-money cards with a projected CAGR of 0.86% over the next 5 years, leading to a total of 30.47 million units by 2028.

Key future trends to watch for include the impact of technological advancements in digital payments, increasing adoption of contactless transactions, and regulatory developments, which may influence the growth trajectory of e-money cards. Additionally, the emergence of alternative payment solutions and changing consumer preferences could also play a significant role in shaping the future landscape.