Summary
South Korea Cards and Payments - Opportunities and Risks to 2026
Summary
‘South Korea Cards and Payments - Opportunities and Risks to 2026’ report provides detailed analysis of market trends in the Korean cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including cards, cash, direct debits, credit transfers, cheques, and mobile wallets during the review-period (2018-22e).
The report also analyzes various payment card markets operating in the industry and provides detailed information on the number of cards in circulation, transaction values and volumes during the review-period and over the forecast-period (2022e-26f). It also offers information on the country’s competitive landscape, including market shares of issuers and schemes.
The report brings together research, modeling, and analysis expertise to allow banks and card issuers to identify segment dynamics and competitive advantages. The report also covers detailed regulatory policies and recent changes in regulatory structure.
The report provides top-level market analysis, information and insights into the Korean cards and payments industry, including -
- Current and forecast values for each market in the Korean cards and payments industry, including debit and credit cards.
- Detailed insights into payment instruments including cards, cash, direct debits, credit transfers, cheques and mobile wallets. It also, includes an overview of the country’s key alternative payment instruments.
- Ecommerce market analysis.
- Analysis of various market drivers and regulations governing the Korean cards and payments industry.
- Detailed analysis of strategies adopted by banks and other institutions to market debit and credit cards.
- Comprehensive analysis of consumer attitudes and buying preferences for cards.
- The competitive landscape of the Korean cards and payments industry.
Scope
- The pandemic has driven a significant shift in consumer preferences towards the use of electronic payments. According to the Cash Use Behavior by Economic Entities report published by the Bank of Korea in June 2022, the monthly average amount of cash spent by households was KRW510,000 ($428.41) in 2021 compared to KRW640,000 ($537.61) in 2018 - a decrease of 25.5%. The report also revealed that the number of retailers such as cafes, self-employed businesses, and supermarkets unwilling to accept cash for payments is gradually growing.
- Amid the gradual recovery from COVID-19, the government took steps to promote the use of card payments. On October 1, 2021, the Ministry of Strategy and Finance launched the Win-Win Consumption Subsidy program. The program enabled card holders to receive 10% cashback on the 15th of the following month if their monthly credit/debit card usage was 3% higher than their average monthly usage in the second quarter. The maximum refund was KRW200,000 ($168) per person. The program was valid until June 30, 2022; leading card issuers including Lotte Card, BC Card, Samsung Card, Shinhan Card, Woori Card, and Hana Card signed up to the scheme.
- Mobile wallets are also used for bill payments. KakaoPay and Naver Pay offer bill payment functionality. Meanwhile, in March 2022, Toss launched Seoul City Tax Revenue, enabling Toss users to pay Seoul tax bills within the app. In July 2021, the city of Gwangmyeong launched a new payment system called the Visible Integrated ARS Payment System. This enables users to pay local taxes, parking and traffic fines, and other utility bills. Payment can be made by making a phone call followed by a minimum identity verification procedure (such as verification of the user’s name and phone number). Payments can be carried out via credit card or mobile wallet.
Reasons to Buy
The report provides top-level market analysis, information and insights into the Korean cards and payments industry, including -
- Make strategic business decisions, using top-level historic and forecast market data, related to the Korean cards and payments industry and each market within it.
- Understand the key market trends and growth opportunities in the Korean cards and payments industry.
- Assess the competitive dynamics in the Korean cards and payments industry.
- Gain insights into marketing strategies used for various card types in South Korea.
- Gain insights into key regulations governing the Korean cards and payments industry.
