As per MRFR analysis, the South Korea Mobile Payments Market Size was estimated at 75.6 (USD Million) in 2023.The South Korea Mobile Payments Market is expected to grow from 86.1(USD Million) in 2024 to 537 (USD Million) by 2035. The South Korea Mobile Payments Market CAGR (growth rate) is expected to be around 18.105% during the forecast period (2025 - 2035).
The South Korea Mobile Payments Market is experiencing significant market trends shaped by increasing smartphone penetration and growing consumer preference for digital transactions. With a high percentage of the population using smartphones, mobile payment solutions have gained traction across various sectors. The government's active support for digital transformation initiatives, including collaboration with fintech companies, has also accelerated adoption.Â
Moreover, the rise of contactless payments, particularly driven by the COVID-19 pandemic, has enhanced user comfort with mobile transactions and bolstered security features in mobile payment apps.South Korea's high-speed internet and advanced mobile technology are two of the main things that drive the market. These things make digital payments easier and more convenient for users.Â
The fast-paced life in cities makes people want quick and easy ways to pay even more. Also, partnerships between traditional banks and fintech companies have made a strong ecosystem for mobile payments, which has led to new ideas and more customer involvement. One way to take advantage of this market is to use AI and machine learning to make transactions more secure and tailor them to each user.
As consumers become more accustomed to mobile payments, there is a growing chance for businesses to enhance services with loyalty programs and tailored offers that utilize customer data effectively. The expansion of mobile wallet applications and the potential for cross-border transactions are notable areas ripe for investment, catering to both local and international users looking for seamless payment solutions.Â
In recent times, South Korea has witnessed an increasing trend toward regulatory support for digital currencies and blockchain technologies, indicating a future shift in how mobile payments may operate. Overall, these trends reflect a dynamic environment where consumer behavior, technological advancements, and regulatory frameworks converge to shape the future of mobile payments in South Korea.
Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review
The continuing rise in smartphone penetration in South Korea significantly drives the South Korea Mobile Payments Market. As per the Ministry of Science and ICT, as of 2022, the smartphone penetration rate in South Korea has reached approximately 95%, indicating that nearly all citizens own a smartphone. This ubiquitous access to smartphones facilitates the widespread adoption of mobile payment solutions such as Samsung Pay and KakaoPay.Â
The government is also pushing for digital transformation initiatives, further fostering the ecosystem for mobile payments.Established entities like Samsung and LG are playing crucial roles by integrating advanced payment technology in their devices, promoting the convenience of cashless transactions. The combination of high smartphone usage and favorable governmental policies indicates a robust trajectory for the mobile payments sector in South Korea.
The growth of the e-commerce sector in South Korea is another prominent driver for the South Korea Mobile Payments Market. According to the Korean Statistical Information Service (KOSIS), online retail sales in South Korea increased by over 20% year-on-year as of 2021, reflecting a significant shift in consumer behavior towards online shopping.Â
This trend necessitates the adoption of efficient and secure mobile payment systems, as customers increasingly prefer to complete transactions through their mobile devices.Major e-commerce platforms like Coupang and Gmarket are also investing in streamlined mobile payment options, creating a more integrated shopping experience. The correlation between rising e-commerce activity and mobile payment solutions positions the South Korea Mobile Payments Market for sustained growth.
The South Korean government is actively promoting the use of digital finance and cashless transactions, bolstering the South Korea Mobile Payments Market. Under the Financial Services Commission initiatives, a digital finance roadmap was introduced to enhance cybersecurity, promote financial inclusion, and support fintech startups. In 2020, government data indicated that cash transactions accounted for only 20% of total transactions, with an aim to lower this figure significantly by promoting mobile payment methods.
This supportive regulatory environment encourages innovation within the payment ecosystem, as fintech companies such as Toss and VCX leverage these policies to expand their offerings. The government's commitment to fostering a cashless society aligns with the growing acceptance of mobile payments, prompting stronger growth in the sector.
The COVID-19 pandemic has accelerated the shift towards contactless payments, propelling the South Korea Mobile Payments Market. A survey by the Korean Payment System Corporation indicated that over 70% of consumers in South Korea opted for contactless payment methods during the pandemic, citing health and safety concerns as primary motivations.Â
This trend is further amplified by retail giants such as Lotte and Shinsegae, which are increasingly adopting contactless payment solutions in their stores.As the fear of contagion persists, consumers are likely to maintain their preference for contactless transactions well beyond the pandemic, solidifying the future growth trajectory of mobile payments in South Korea. This behavior suggests a lasting impact on payment habits, driving sustained demand for mobile payment solutions.
The South Korea Mobile Payments Market is experiencing substantial growth, driven by various transaction types that cater to the evolving preferences of consumers and businesses alike. The dominant transaction types include Remote Payments, Proximity Payments, In-App Payments, and Person-to-Person Payments, each serving unique consumer needs. Remote Payments have gained significant traction, particularly due to the increasing prevalence of e-commerce and online shopping.Â
The convenience of making payments from anywhere has led to a surge in remote transactions, making them a preferred choice for many consumers. Proximity Payments, which involve transactions made through contactless technology, have also seen a rise in usage, facilitated by the widespread adoption of Near Field Communication (NFC) technology and QR codes. This transition towards a cashless society in South Korea is supported by government initiatives encouraging digital transactions, which align with the country’s aim to enhance economic efficiency.Â
-App Payments are becoming increasingly integral to the mobile payment ecosystem as the usage of mobile applications continues to grow. The seamless integration of payment options within apps enhances the user experience, making it easier for customers to purchase digital goods and services without navigating away from the application. This trend is further fueled by the rise of mobile gaming and content subscriptions, where users favor quick and straightforward payment processes.Â
Person-to-Person Payments facilitate individual transactions, reflecting the growing demand for peer-to-peer financial exchanges, particularly amidst social distancing practices fostered by the pandemic. These payments offer enhanced convenience for users looking to transfer funds quickly and easily. The rise of social commerce and community-driven platforms has added a layer of importance to this transaction type, as it supports smaller businesses and local economies.Â
As various transaction types flourish, the South Korea Mobile Payments Market segmentation highlights how diverse consumer behavior shapes the digital payments landscape, thereby influencing market strategies and technological innovations within the industry.
Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review
The Payment Method segment of the South Korea Mobile Payments Market showcases a dynamic landscape that is rapidly evolving in line with technological advancements and consumer preferences. Credit Cards remain a significant contributor, offering convenience and security to users, while Debit Cards also resonate well due to their appeal for direct account-based transactions.
Mobile Wallets have seen substantial growth owing to their ease of use and integration with various payment platforms, allowing users to conduct transactions swiftly and securely.Additionally, Bank Transfers continue to play an essential role, particularly for larger purchases and B2B transactions, due to their reliability. This diversification in payment methods highlights the increasing consumer choice and adaptability in South Korea, which is driven by an expanding digital economy and a tech-savvy population.Â
The burgeoning interest in seamless payment solutions offers numerous opportunities for innovation and collaboration among financial institutions, fintech companies, and merchants. With the South Korean government supporting cashless initiatives, the overall market is set for sustained growth, showcasing the importance of integrating diverse payment methods in meeting consumer expectations efficiently.
The End User segment of the South Korea Mobile Payments Market plays a crucial role in driving the overall growth and dynamism of the industry. Retail Consumers represent a major part of this segment, as they increasingly favor mobile payment methods for their convenience and speed, reflecting a broader trend towards digitalization in daily transactions.
Businesses, ranging from small enterprises to large corporations, leverage mobile payment solutions to streamline operations and enhance customer experiences, contributing to notable increases in sales and efficiency.The Government also shows a growing interest in promoting mobile payment systems as part of its initiatives to boost financial inclusion and promote a cashless society.Â
The South Korean government's efforts to adopt advanced technology in finance further support the increasing penetration of mobile payments, aligning with global trends towards digital financial interactions. As consumer behavior shifts and businesses adapt, opportunities for innovation and expansion within this segment continue to grow, fueling a robust competitive landscape in the South Korea Mobile Payments Market.
The South Korea Mobile Payments Market, particularly within the Platform segment, is witnessing significant growth driven by the increasing digitalization of payment systems. Major platforms enabling transactions through mobile devices include Android, iOS, and Web-Based systems. The rapid adoption of smartphones in South Korea has led to a substantial rise in mobile payment solutions, with Android platforms holding a substantial user base due to their accessibility and diverse application ecosystem.Â
iOS is recognized for its security features and user-friendly interface, attracting a dedicated segment of consumers who prioritize privacy in financial transactions, while Web-Based platforms offer convenience for transactions through browsers, enabling users to engage in commerce without the need for additional applications.The dominance of these platforms is further supported by the government's push for a cashless society, along with innovative payment technologies, enhancing user experience and trust.Â
This shift not only aligns with global trends towards digitization but also offers various growth opportunities for service providers aiming to capture South Korea’s tech-savvy market segment. Understanding the South Korea Mobile Payments Market revenue, segmentation, and statistics presents an impressive landscape for stakeholders in the mobile payment industry.
The South Korea Mobile Payments Market has experienced rapid growth and evolution, making it a vibrant and competitive landscape. The increasing adoption of smartphones and digital wallets, coupled with a tech-savvy consumer base, has driven the surge in mobile payment services. As retailers and financial institutions alike strive to capture market share, a variety of players are leveraging innovative solutions involving user-friendly applications, QR codes, and NFC technology to facilitate seamless transactions.Â
The competition is characterized by not just established telecom operators and banks, but also agile fintech startups that are continually introducing disruptive technologies. This dynamic environment has engendered a focus on usability, security, and integration with other financial services, enhancing the overall experience for consumers while presenting challenges for market participants to remain relevant and competitive.LG Uplus is one of the prominent players in the South Korea Mobile Payments Market, showcasing its significant presence through strategic partnerships and a robust technological infrastructure. The company has aimed to enhance user experiences by providing a range of services, including payment solutions that are seamlessly integrated with its telecommunications offerings.Â
The strength of LG Uplus lies in its capabilities to capitalize on its existing customer base, enabling easy access to mobile payment options. Additionally, LG Uplus has focused on advancing its infrastructure to support real-time payments and secure transactions, fostering trust among consumers. The company's investment in innovation positions it favorably within the competitive landscape, as it continuously seeks to expand its offerings and optimize the mobile payment experience for its users.Woori Bank has established itself as a key player in the South Korea Mobile Payments Market, boasting a portfolio of services that caters to both individual customers and businesses. The bank offers various financial products, including digital wallets and payment solutions that enhance the ease of transactions for its users.Â
Woori Bank's market presence is bolstered by its long-standing reputation in the banking industry and a commitment to adopting cutting-edge technology. Its strengths lie in extensive customer service and a robust network of physical branches that complement its digital offerings. Additionally, Woori Bank has pursued strategic mergers and acquisitions to enhance its technological capabilities and expand its market reach. By continuously evolving its product lineup and integrating advanced payment solutions, Woori Bank positions itself as a strong competitor in the mobile payments sector in South Korea, responding effectively to the ever-changing market demands and consumer preferences.
Recent developments in the South Korea Mobile Payments Market are marked by significant advancements and shifts among key players. In October 2023, LG Uplus announced an expansion of its mobile payment services in partnership with various local retail chains, aiming to enhance customer convenience through innovative technology. Woori Bank continues to strengthen its mobile banking platform, focusing on integrating advanced security features to cater to the rising demand for secure online transactions.Â
Meanwhile, Payco reported an increase in user adoption as it introduced features aimed at improving the customer experience. Samsung Pay remains a dominant player, working on expanding its ecosystem amid competition from Kakao Pay and Toss, both of which have seen considerable growth in their user base in recent months. Notably, in July 2023, a strategic partnership was reported between Naver and Alipay to enable cross-border payments, enhancing global commerce opportunities for both companies.Â
Additionally, BC Card and Hyundai Card have recently announced plans to develop new fintech solutions together, further intensifying competition in the market as consumers increasingly turn to seamless digital payment alternatives. The dynamic landscape of South Korea's mobile payments sector reflects ongoing innovation and a robust push for enhanced user engagement.
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2023 | 75.6 (USD Million) |
| MARKET SIZE 2024 | 86.1 (USD Million) |
| MARKET SIZE 2035 | 537.0 (USD Million) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 18.105% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Million |
| KEY COMPANIES PROFILED | LG Uplus, Woori Bank, Payco, Samsung Pay, KB Kookmin Bank, Lotte Card, Naver, Toss, Alipay, BC Card, Kakao Pay, Hana Bank, Shinhan Card, NongHyup Bank, Hyundai Card |
| SEGMENTS COVERED | Transaction Type, Payment Method, End User, Platform |
| KEY MARKET OPPORTUNITIES | Increased smartphone penetration, Rising e-commerce adoption, Growing acceptance by retailers, Integration with financial services, Demand for secure payment solutions |
| KEY MARKET DYNAMICS | high smartphone penetration, strong internet infrastructure, government support for digital payments, increasing consumer demand, competitive fintech landscape |
| COUNTRIES COVERED | South Korea |
Frequently Asked Questions (FAQ) :
The South Korea Mobile Payments Market is expected to reach a value of 537.0 million USD by the year 2035.
The market is projected to grow at a compound annual growth rate (CAGR) of 18.105% from 2025 to 2035.
In 2024, the Remote Payments segment in South Korea is valued at 30.0 million USD.
The Proximity Payments segment is anticipated to reach a value of 160.0 million USD by 2035.
Significant players include Samsung Pay, Kakao Pay, and Toss, among others.
In-App Payments are expected to be valued at 120.0 million USD by the year 2035.
The Person-to-Person Payments segment is estimated to be worth 11.1 million USD in 2024.
Increased smartphone usage and the growing preference for cashless transactions are driving market growth.
Challenges include regulatory compliance and competition from international payment systems.
Proximity Payments are valued at 25.0 million USD in 2024.
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Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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