South Korea Mobile Wallet Market Research Report By Mode of Payment (NFC, Remote Payment) and By Type (Proximity, Remote)-Forecast to 2035

South Korea Mobile Wallet Market Overview

As per MRFR analysis, the South Korea Mobile Wallet Market Size was estimated at 68.26 (USD Million) in 2023.The South Korea Mobile Wallet Market is expected to grow from 80.36(USD Million) in 2024 to 300 (USD Million) by 2035. The South Korea Mobile Wallet Market CAGR (growth rate) is expected to be around 12.722% during the forecast period (2025 - 2035).

Key South Korea Mobile Wallet Market Trends Highlighted

The growing use of smartphones and digital payment methods has contributed to the notable expansion of the South Korean mobile wallet market. South Korea has a flourishing mobile payment environment and a populace that is quite tech-savvy.

The government's efforts to encourage cashless transactions, such the Digital Payment Infrastructure project, which supports small and medium-sized businesses, are important market drivers. As customers look for easy and secure ways to make payments, the growth of e-commerce during the epidemic has further sped up the transition to mobile wallets.

As mobile wallets develop to incorporate features like loyalty programs, digital coupons, and cryptocurrency support, there are plenty of opportunities for growth. By including more financial services in mobile applications, it may be possible to reach a wider audience in South Korea, where customers place a higher importance on seamless experiences.

Furthermore, collaborations with nearby enterprises and up-and-coming fintech firms might spur creative solutions catered to the particular tastes of South Korean consumers. Recent trends indicate that contactless payments are becoming more popular, and many merchants have started using near-field communication (NFC) technology.

Additionally, the COVID-19 pandemic has reduced the need for cash by encouraging more people to use mobile wallets for regular purchases. Additionally, the entry of international companies into the South Korean market has increased rivalry and forced local suppliers to constantly improve their products.

Security, user experience, and connectivity with other digital services continue to be crucial as the mobile wallet industry develops in order to preserve South Korean consumers' confidence and involvement.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

South Korea Mobile Wallet Market Drivers

Growing Smartphone Penetration

The South Korea Mobile Wallet Market is experiencing significant growth driven by the increasing penetration of smartphones in the region. As of 2022, approximately 95% of the South Korean population owns a smartphone, which facilitates easy access to mobile wallet applications.

The South Korean government has actively promoted digital transformation through initiatives such as the 'Digital New Deal,' aiming to enhance the country's technological infrastructure. This initiative is expected to drive mobile wallet adoption further, with a projected 20% increase in user engagement within the next few years, according to data from the Ministry of Science and ICT.

As a result, leading organizations like Samsung and LG, which are headquartered in South Korea, are investing heavily in mobile payments technology, thereby propelling the growth of the South Korea Mobile Wallet Market.

Government Support for Cashless Transactions

Government policies in South Korea have been fostering a shift towards cashless transactions, significantly benefiting the South Korea Mobile Wallet Market. In recent years, the South Korean government has implemented various incentives for businesses and consumers to embrace digital payments.

For instance, a report by the Bank of Korea indicated a 15% increase in cashless transactions in 2021 alone, attributed to government-backed initiatives. As part of the Digital Finance Policy, the government aims to increase the proportion of cashless transactions to 60% by 2025.

This encouragement of digital payment systems has led companies like KakaoPay and Naver Pay to expand their services and user bases, positioning themselves prominently in the South Korea Mobile Wallet Market.

Rise in E-commerce Activity

The accelerated growth of e-commerce in South Korea is another key driver for the South Korea Mobile Wallet Market. In 2022, South Korea reported e-commerce sales reaching over 200 billion USD, with a significant portion of these transactions being conducted through mobile devices.

According to data from the Korea Statistical Information Service, mobile commerce constituted approximately 35% of total e-commerce sales, reflecting a growing consumer preference for purchasing via mobile devices.

This trend has urged major e-commerce platforms like Coupang and 11st to integrate mobile wallet options, enhancing their payment systems to accommodate this shift. Consequently, the rising e-commerce activity will continue to propel the demand for mobile wallets in South Korea.

Increased Focus on Cybersecurity

As the adoption of mobile wallets proliferates, so does the emphasis on cybersecurity within the South Korea Mobile Wallet Market. Recent statistics provided by the Korea Internet & Security Agency reflect a 25% increase in cybersecurity threats targeting financial transactions in the mobile sector over the last two years.

In response, local firms are intensifying their investments in cybersecurity measures to protect consumer data and enhance trust. For example, companies such as Shinhan Bank have implemented advanced encryption technologies and biometric authentication systems to secure transactions effectively.

This strong emphasis on cybersecurity is not only improving consumer confidence but also driving growth within the South Korea Mobile Wallet Market, indicating a promising future for securely managed digital payments.

South Korea Mobile Wallet Market Segment Insights

Mobile Wallet Market Mode of Payment Insights

The South Korea Mobile Wallet Market has seen notable advancements in its Mode of Payment segment, which plays a pivotal role in driving increased adoption of digital payment solutions across the nation. The growing preference for mobile wallets among consumers and merchants alike is evident, with the increasing reliance on contactless payment methods.

This shift towards convenience and speed is significantly attributed to technological innovations and evolving consumer behavior. NFC (Near Field Communication) technology, for instance, has gained traction as a dominant method for seamless transactions, allowing users to make quick purchases by simply tapping their smartphones against compatible terminals.

This method enhances user experience, reducing wait times and fostering a trend toward cashless transactions in various retail environments across South Korea. On the other hand, remote payments are also becoming increasingly relevant, particularly in e-commerce and digital service transactions.

The convenience of making purchases from the comfort of one’s home has driven the demand for secure and efficient remote payment solutions.

In South Korea's highly digitized society, consumers expect a streamlined purchasing process, contributing to the growing popularity of mobile wallets that offer remote payment features. With South Korea's high internet penetration and smartphone adoption rates, these payment methods are well-positioned to thrive.

Both NFC and remote payments are significant in the context of the South Korea Mobile Wallet Market as they cater to the consumer demand for speedy and secure transactions. As merchants adapt to these trends, they enhance their operational efficiency and customer satisfaction, further embedding mobile wallets into everyday commerce.

With a robust infrastructure and a tech-savvy population, South Korea demonstrates a strong potential for continued growth in the Mobile Wallet Market, led by the innovations within the Mode of Payment segment.

The ongoing integration of mobile wallets into various platforms indicates a bright future for the industry, fostering greater financial convenience and encouraging more consumers to embrace digital payment methods.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Mobile Wallet Market Type Insights

The South Korea Mobile Wallet Market showcases a dynamic segmentation by Type, primarily consisting of Proximity and Remote mobile wallet solutions. Proximity mobile wallets enable users to make transactions through Near Field Communication (NFC) technology, a feature that is rapidly gaining traction in physical retail locations across South Korea.

This technology provides a seamless payment experience, leveraging the growing adoption of smart devices and contactless transactions, which align with consumer preferences for convenience and speed. On the other hand, Remote mobile wallets cater to online transactions and e-commerce, serving as an essential tool for consumers engaging in digital shopping.

As South Korea continues to advance in its digital infrastructure, the Remote segment demonstrates significant potential, driven by increasing online consumer behavior and the rising demand for secure digital payment options.

The bifurcation between these two types reflects the shifting landscape of consumer transaction preferences, underscoring the importance of both proximity and remote payment solutions in enhancing the overall South Korea mobile payment ecosystem.

The market growth is fueled by the overall digital transformation in the region, supported by government initiatives promoting cashless transactions and innovation in mobile financial services.

South Korea Mobile Wallet Market Key Players and Competitive Insights

The South Korea mobile wallet market has experienced rapid growth due to technological advancements and an increasing shift towards cashless transactions. The competitive landscape is characterized by a variety of players vying for market share, each leveraging innovative features, partnerships, and targeted marketing strategies to attract consumers.

The adoption of mobile wallets among South Korean users has been spurred by the proliferation of smartphones and a strong preference for digital payment solutions that offer convenience and enhanced security.

Competing in this dynamic market requires companies to frequently update their offerings and address changing consumer preferences, creating a highly competitive atmosphere marked by constant innovation and strategic moves.

Payco has become a noteworthy contender in the South Korea mobile wallet market, offering a range of services designed to cater to modern consumer needs. The key offerings of Payco include seamless payment solutions for online and offline transactions, discounts and promotions for users, as well as rewards programs designed to encourage customer loyalty.

Payco's strengths come from its brand recognition, strategic partnerships with various retailers and service providers, and an emphasis on customer-centric features.

The company's market presence has been bolstered through various mergers and acquisitions, expanding its service capabilities and customer base. Payco has effectively positioned itself to tap into the growing demand for mobile payment solutions in South Korea, continually innovating to meet consumer expectations and industry standards.

Key Companies in the South Korea Mobile Wallet Market Include

• Payco
• Samsung Pay
• Google Pay
• Naver
• Toss
• Alipay
• Visa
• Kakao Pay
• Mastercard
• WeChat Pay
• Apple Pay

South Korea Mobile Wallet Market Developments

Although adoption was initially slow since only roughly 10% of stores had NFC-enabled terminals, Apple Pay officially launched in South Korea in March 2023 through Hyundai Card, allowing users of iPhones and Watches to make contactless purchases.

With a roughly 49% market share, Samsung Pay maintained its leadership by utilizing MST technology to facilitate non-NFC payment terminals and gaining widespread acceptance in retail settings. In 2023, Naver Pay and Samsung Pay merged, enabling Naver Pay customers to tap-to-pay in more than 550,000 locations using Samsung's infrastructure.

Following suit in 2024, Kakao Pay teamed up with Samsung Pay to increase tap-to-pay acceptability without the need for specific hardware. By September 2024, Kakao Pay has expanded its merchant network and cross-border connection with Alipay+, setting the ambitious goal of 10 billion transactions annually by 2026.

In the meanwhile, the central bank of South Korea started a CBDC trial program called "Project Han River" in March 2025, which involved 100,000 users and tested tokenized payments in both online and offline shopping.

While Google Pay, Visa, Mastercard, WeChat Pay, and Alipay continued to serve large merchant networks for travelers and e-commerce, Toss remained a leading provider of real-time payments. Collectively, these advancements show how the mobile wallet market is rapidly changing due to interoperability, business alliances, the growth of NFC infrastructure, fintech innovation, and regulatory advancements.

South Korea Mobile Wallet Market Segmentation Insights

• Mobile Wallet Market Mode of Payment Outlook
  • NFC
  • Remote Payment
• Mobile Wallet Market Type Outlook
  • Proximity
  • Remote

 

Report Attribute/Metric Source:	Details
MARKET SIZE 2023	68.26(USD Million)
MARKET SIZE 2024	80.36(USD Million)
MARKET SIZE 2035	300.0(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR)	12.722% (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, Payco, Samsung Pay, Google Pay, Naver, Toss, Alipay, Visa, Kakao Pay, Mastercard, Kbank, WeChat Pay, Coupang, Apple Pay, Stripe
SEGMENTS COVERED	Mode of Payment, Type
KEY MARKET OPPORTUNITIES	Growing e-commerce sector, Increased smartphone penetration, Rise in contactless payments, Consumer demand for convenience, Integration with loyalty programs
KEY MARKET DYNAMICS	rapid digital payment adoption, increasing smartphone penetration, strong government support, evolving consumer preferences, competitive fintech landscape
COUNTRIES COVERED	South Korea