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South Korea Cards and Payments - Opportunities and Risks to 2025

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    Report

  • 79 Pages
  • December 2021
  • Region: South Korea
  • GlobalData
  • ID: 5517707
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the publisher’s ‘South Korea Cards and Payments - Opportunities and Risks to 2025' report provides detailed analysis of market trends in the South Korean cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including cards, credit transfers, cash, direct debits and cheques during the review-period (2017-21e).

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 (2021e-25f). It also offers information on the country's competitive landscape, including market shares of issuers and schemes.

The report brings together the publisher’s 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 publisher’s ‘South Korea Cards and Payments: Opportunities and Risks to 2025' report provides top-level market analysis, information and insights into the South Korean cards and payments industry, including -
  • Current and forecast values for each market in the South Korean cards and payments industry, including debit and credit cards.
  • Detailed insights into payment instruments including cards, credit transfers, cash, direct debits and cheques . 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 South 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 South Korean cards and payments industry

Scope


  • The COVID-19 pandemic disrupted the South Korean economy. Uncertain economic condition coupled with a rise in unemployment curbed consumer expenditure in 2020, which in turn affected the payments market. As the country recovers from the crisis, the government is taking 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 enables card holders to receive 10% cashback on the 15th of the following month if their monthly credit/debit card usage is 3% higher than their average monthly usage in the second quarter (April to June 2021). The maximum refund is KRW200,000 ($183.76) per person. The program is valid until June 30, 2022; leading card issuers including Lotte Card, BC Card, Samsung Card, Shinhan Card, Woori Card, and Hana Card have signed up to the scheme. 1.4 million card holders applied to this program within 17 days of launch.
  • In June 2020, the Committee on Financial Informatization Promotion collaborated with banks to introduce a mobile cash card app. Users can link their bank account with the app, which can be used for ATM cash withdrawals and deposits, in-store payments, and cash withdrawals and deposits at participating merchants. The solution is currently supported by 21 banks in the country, including NongHyup Bank, Woori Bank, and Shinhan Card. Meanwhile, the app is accepted at over 120,000 partner merchants. This widespread merchant acceptance is due to low processing fees for payments made through the app, which range from 0.3% to 1.0% - lower than the rates charged by credit cards (2.1%) and debit cards (1.5%). The committee plans to offer the service for online payments in the future.
  • The entry of digital-only banks is driving competition in the banking space, thus helping boost debit card holding. Leading digital-only banks operating in South Korea include Toss Bank (introduced in December 2019), Kakao Bank (launched in July 2017), and K Bank (launched in April 2017). As of June 2021, Toss Bank had 20 million registered users, compared to 17.17 million for Kakao Bank (as of September 2021) and 6.19 million for K Bank (as of June 2021).

Reasons to Buy


  • Make strategic business decisions, using top-level historic and forecast market data, related to the South Korean cards and payments industry and each market within it.
  • Understand the key market trends and growth opportunities in the South Korean cards and payments industry.
  • Assess the competitive dynamics in the South 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 South Korean cards and payments industry.

Table of Contents

  • Market Overview
  • Payment Instruments
  • Card-Based Payments
  • Ecommerce Payments
  • Buy Now Pay Later
  • Mobile Payments
  • P2P Payments
  • Bill Payments
  • Alternative Payments
  • Payment Innovations
  • Job Analysis
  • Payment Infrastructure and Regulation
  • Appendix

Companies Mentioned

A selection of companies mentioned in this report includes:

  • NongHyup Bank
  • Shinhan Card
  • KB Kookmin Bank
  • Woori Bank
  • Hana Financial Group
  • Industrial Bank,Busan Bank
  • Daegu Bank
  • Kyongnam Bank
  • Kwangju Bank
  • National Federation of Fisheries Cooperatives
  • Standard Chartered
  • Lotte Card
  • Jeonbuk Bank
  • Citibank
  • Jeju Bank
  • Hyundai Card
  • Samsung Card
  • Samsung Pay
  • PayPal
  • Toss
  • Kakaopay
  • Naver Pay
  • LG Pay
  • Masterpass