For many countries, adopting digital payments is still very much an ongoing process.
Not in South Korea, though – payments here are digital-first. The data is clear:
Cash’s share of POS transactions in South Korea was only 7% in 2024;
75% of online purchases in 2024 were made with mobile devices;
South Korea’s real-time payments (RTP) system was launched in 1988 and processed 9.1 billion transactions in 2023.
The country’s heavy use of electronic payments makes it more of a mature payments market. As a result, the growth projections for the South Korean payments industry are lower than those of an emerging market. That said, the forecast is still promising, with 6.84% growth projected between 2025 and 2033. In fact, South Korea’s digital payments market is anticipated to expand from USD 3.54 billion in 2024 to USD 17 billion by 2035.
With an RTP system launched nearly 40 years ago, it’s clear that South Korea’s payments industry has generally been tech-forward, and this continues.
For example, it’s estimated that there are over 800 fintech startups in South Korea. Beyond the powerful market demand for digital payments, government support has directly encouraged fintech development. Between 2020 and 2023, South Korea’s Financial Services Commission (FSC – a government agency with authority over financial policy in the country) supplied USD 207 million in investment to 85 fintech startups. Next, the FSC plans to raise USD 368 million between 2024 and 2027, much of which will be used in fintech startup investment.
Several areas within the fintech sector stand out in terms of recent developments:
RTPs: with 9.1 billion transactions processed in 2023, South Korea already accounted for 3% of all RTP transactions worldwide. As such, growth projections are robust: the South Korean RTP market will grow at a CAGR of nearly 38% between 2025 and 2030, reaching USD 10.1 billion from USD 2.04 billion in 2025. This exemplifies how RTPs can help boost growth even in mature digital payments environments.
QR codes: they are extremely common in South Korea, with nearly 91% of respondents from a 2022 online survey confirming experience using QR codes. While verified data on QR usage in Korea is scant, some clues suggest significant uptake, such as the integration of QR codes by the country’s largest mobile payments platforms, including Naver Pay, Kakao, Toss, and Zero (see more on those companies below).
Cross-border payments: the Bank of Korea recently joined Project Agora, an initiative from the Bank for International Settlements (BIS) that explores the use of tokenization to improve the speed and integrity of cross-border payments. In addition, in 2024, the Bank of Korea and the Bank of Indonesia signed a memorandum of understanding to cooperate more closely and facilitate cross-border payments between the two countries. South Korea is also partnering with Cambodia to offer a cross-border credit report sharing programme and help Cambodians living in Korea and Koreans living in Cambodia. In addition, South Korea will start regulating cryptocurrency cross-border transactions in the second half of 2025.
Cryptocurrency: more than 16 million Koreans now have accounts with major domestic cryptocurrency exchanges. Given that the population is 51.7 million, this means that nearly one-third of all Koreans are involved in the cryptocurrency market. However, along with the growth comes increased regulatory scrutiny. While a 20% capital gains tax on cryptocurrency has been postponed to 2027, the government indicted a crypto trader in the first ‘pump and dump’ prosecution since the Virtual Asset User Protection Act was passed in 2024. The FSC has also announced a plan to allow corporate entities to open crypto trading accounts later in 2025, and is reviewing the possibility of allowing Bitcoin spot exchange-traded funds (ETFs).
According to Worldpay’s Global Payments Report 2025, credit cards are still holding strong at the POS: they have a 54% share of transactions, trailed significantly by digital wallets (20%), debit/prepaid cards (14%), cash (7%), account-to-account (A2A: 4%), and Buy Now, Pay Later (BNPL: 1%). A2A payments have not caught on the way they have in countries like Brazil (41% with ecommerce and 32% at the POS in 2024), the Netherlands (68% with ecommerce in 2024), or Malaysia (37% with ecommerce in 2024). This is likely due to the prevalence of digital wallet uptake via mobile payment fintech platforms that serve a populace where smartphone penetration is over 95% for most age groups, and the use of the country’s RTP system for more institutional purposes.
South Korea’s fintech and mobile payment ecosystem is defined by a unique blend of homegrown super apps, tech-finance hybrids, and government-backed innovation. The top players are not only facilitating transactions but also redefining how users interact with financial services across payments, investing, insurance, and lifestyle management.
Naver Pay: launched in June 2015 by Naver, an online platform featuring search, email, video streaming, email, live commerce, and other online services, Naver Pay is a leading mobile payment service in South Korea. It offers online/offline payments, money transfers, BNPL features, and reward points, with up to 5% cashback for Naver Plus members. The service is tightly integrated with the Naver ecosystem, including shopping, reservations, and content.
While its strengths include wide usability, strong ecommerce synergy with Naver Smart Store merchants and AI-driven shopping recommendations, as well as strong reward programmes, Naver Pay faces challenges such as limited international support and significant commissions charged to merchants who use the service for transactions. It has also expanded into offline payments through Naver Pay QR/NFC terminals. With Korea’s mobile payment market continuing to grow, Naver Pay is expected to expand its offering of financial services.
Kakao Pay: launched in 2014, it is the second-largest mobile payment and digital wallet service in South Korea, seamlessly integrated into the popular messaging app KakaoTalk. With over 40 million users, it offers a wide range of financial services, including online and offline payments, QR code scans, remittance, money transfers, bill payments, investments, insurance, and debit cards.
Its integration with KakaoTalk allows users to manage financial transactions within a familiar interface, enhancing user convenience. Kakao Pay has also expanded its services internationally, enabling users to make payments abroad without currency exchange and allowing foreign tourists to use their mobile payment services at affiliated stores in South Korea. Technologically, Kakao Pay supports contactless payments using NFC and QR codes and has modernised its IT infrastructure to improve efficiency and reduce downtime.
Toss (Viva Republica): Operated by Viva Republica, Toss was established in 2013 and launched a simple remittance service through the Toss app in 2015. Currently, the Toss app allows users to conveniently use various financial services, such as banking, securities, loan brokerage, card brokerage, and digital payment services provided by its affiliated companies through one app. In addition, it operates the PG (Payment Gateway) business through its affiliate company, Toss Payments, which was launched in August 2020 through the acquisition of the PG business of LG Uplus, now providing various tax services through the following: the mobility platform 'TADA' service at its affiliate company, ‘MVNO’ service at TossMobile, and tax platform 'SAVE IT' at TOSS INC.
The platform supports both online and offline transactions, utilising technologies like QR codes, NFC, and a recently introduced face-scanning payment system at convenience stores. A notable technological advancement is the ‘switch-OTP’, which allows users to authenticate high-value transactions by simply tapping their Toss Bank card on the back of a smartphone, enhancing security and user convenience.
Samsung Pay: launched in South Korea in 2015, it is a mobile payment and digital wallet service developed by Samsung Electronics. It supports both Near-Field Communication (NFC) and Magnetic Secure Transmission (MST) technologies, allowing compatibility with a wide range of payment terminals, including older magnetic stripe readers.
As of July 2024, Samsung Pay is accepted at over 3 million merchants in South Korea, highlighting its extensive reach. The service is integrated into Samsung Wallet, enabling users to store payment cards, loyalty cards, boarding passes, and more. While Samsung Pay offers broad compatibility and convenience, it faces challenges like limited adoption among non-Samsung device users and competition from other mobile payment platforms.
Zero Pay: this is a government-led QR payment initiative focused on supporting SMEs. It charges zero transaction fees for merchants and is accepted at over 2 million businesses, including taxis, markets, and festivals. Zero Pay also features a localised QR solution with expansion to regional gift cards and inbound tourist payments, and is now integrated with WeChat Pay, UnionPay, AliPay+, and PXPay Plus (Taiwan), as well as other global payment services.
Shinhan SOL Pay: this is a mobile payment service integrated within Shinhan Bank's ‘Super SOL’ app, offering a comprehensive digital banking experience. Users can register their Shinhan Cards to make online and offline payments via QR codes and barcodes, with real-time notifications enhancing transaction transparency. The platform supports biometric authentication methods such as fingerprint, iris, and facial recognition, bolstering security.
Meanwhile, Apple Pay officially launched in South Korea on 21 March 2023, through an exclusive partnership with Hyundai Card. Within a month, the number of new Hyundai Card issuances surged by 156%, reflecting strong initial interest.
However, widespread adoption has been slow due to key limitations. According to a March 2025 report from the Korea Times, only about 10% of Korean stores are equipped with NFC terminals, which are essential for Apple Pay. The report indicates that ‘many Korean business owners rely on traditionally used magnetic stripe card readers. With replacement costs of approximately 200,00 won (USD 137.67) per terminal, financial concerns discourage adoption’. As of 2024, Samsung Pay had an 18% market share, compared to Apple's 1%.
Apple Pay’s growth potential depends on expanding NFC infrastructure and partnering with more Korean credit card issuers. The rising popularity of iPhones among younger consumers could also support its expansion. Although current usage is limited, Apple Pay still has long-term potential in South Korea.
In 2024, online shopping transactions amounted to USD 15.5 billion (KRW21.2 trillion), a 3.2% year-over-year (YoY) increase, while mobile shopping transactions reached USD 11.8 billion (KRW 16,2 trillion), seeing a 5.2% growth. Mobile shopping accounted for 76.4% of online shopping transactions.
In 2024, cross-border ecommerce purchases totalled USD 1.6 billion (KRW 2.19 trillion), a YoY increase of 11.7%. In Q4 2024, China accounted for the largest share (62%) of cross-border purchases by Koreans, followed by the US (19%) and the EU (6.7%). By product category, apparel/fashion (45.5%) accounted for the largest share of online cross-border direct buying, followed by food/grocery (17.2%) and household/automotive (9%).
According to PCMI’s Global Ecommerce Data Library, the top ecommerce payment methods used in South Korea are:
Credit cards: 58%
Digital wallets: 24%
Debit card: 10%
A2A: 3%
BNPL: 2%
Other: 3%.
Naver Shopping
South Korea has a highly competitive market for ecommerce platforms, with Naver Shopping (22%) leading Coupang (20%), Gmarket (15%), and 11St (13%) in 2023. It held a significant share of the online retail market, contributing to the combined 57% market share of the top three platforms – Coupang, Naver, and Gmarket. Naver's ecommerce growth is driven by its integration with the Naver search engine, which commands a 48.45% market share in South Korea as of April 2025.
Coupang
In 2024, the company achieved record-breaking sales of approximately USD 30 billion, marking a 24% YoY increase. It is driven by its expansive logistics network and customer-centric services like Rocket Delivery. Coupang's Rocket WOW membership programme, akin to Amazon Prime, boasts over 14 million subscribers, covering two-thirds of Korean households.
Gmarket
Gmarket, established in 2000 and currently owned by Shinsegae Group, is one of South Korea's leading ecommerce platforms. As of 2023, it holds the third-largest market share in the country's online retail sector, following Coupang and Naver Shopping. Despite facing stiff competition from emerging platforms, Gmarket continues to be a significant player in South Korea's ecommerce landscape.
AliExpress Korea
AliExpress has been rapidly expanding its presence in South Korea since its entry in 2018. By 2023, AliExpress Korea's monthly active users reached 9.5 million, doubling from the previous year. The platform's appeal lies in its competitive pricing and diverse product offerings, attracting a growing number of South Korean consumers. However, two Chinese online shopping platforms, including Temu and Ali, have less than 2% of the South Korean ecommerce market share.
As of 2025, the country hosts three licenced internet-only banks: KakaoBank, K Bank, and Toss Bank. These institutions have achieved record profits in 2024, prompting the Financial Services Commission to consider licencing a fourth internet-only bank, focused on sustainability, innovation, and inclusivity in its criteria. This expansion reflects an increased consumer demand for digital banking services and the government's commitment to fostering innovation in the financial sector.
In 2025, South Korea's MyData initiative was upgraded to MyData 2.0, expanding access to offline channels and lowering the minimum user age to 14. Originally established in 2019, MyData is a service that provides users with access to personal financial information through mobile apps created by banks, fintechs and other types of financial services firms. The service helps users to manage assets and liabilities, track expenditures, manage credit scores, and perform other financial-related activities.
The MyData system now integrates a wide range of financial and public data, enabling more personalised services, such as investment planning and public benefit recommendations. Moreover, enhanced security measures include secure data transmission and automatic data deletion after periods of inactivity. These updates aim to increase consumer control over their data while promoting financial innovation and inclusion.
The strong mobile-first orientation of the market is expected to continue. For example, South Korea is at the forefront of 6G development, aiming to commercialise its first 6G network services by 2028, two years ahead of the global expectation of 2030. This initiative is part of the government's K-Network 2030 strategy, which seeks to enhance public-private collaboration in developing 6G technologies, including AI-driven networks, edge computing, and smart city applications.
Faster connections obviously facilitate an increase in mobile payments, and future projections reflect this expansion:
South Korea’s mobile payments market is expected to grow at a CAGR of 20.1% between 2024 and 2030 to reach USD 4.79 billion by 2030;
Transaction value in South Korea’s mobile POS market is expected to increase from USD 123 billion in 2025 to USD 387 billion by 2030;
Digital wallets will overtake credit cards in South Korea to command the largest share of ecommerce payments (48% vs. 33% for credit cards) by 2030;
Cash’s share of POS transactions is expected to decline to 5%, comparable with other low-cash markets like China, Denmark, Hong Kong, and Sweden, and much lower than the projected 9% share in 2030 for all APAC markets;
With POS payments, credit cards will retain a slight lead in share in 2030 (41%) over digital wallets (38%).
Considering all these developments, propelled by an increasingly digital-savvy population, future opportunities in South Korea’s payments market will clearly be tech-driven and are likely to revolve around improving the speed, security, and convenience of current methods.
Lindsay Lehr is the Managing Director of Payments and Commerce Market Intelligence (PCMI), a strategy consultancy specialising in the global payments industry. Since 2012, Lindsay has managed over 400 client engagements in the payments industry, growing her team of one to over 50 consultants based across the US, Latin America, Europe, Asia, and South Africa. Lindsay is a renowned thought leader in the payments space, advising the world’s most exciting companies, including card networks, global marketplaces, and payment platforms.
PCMI is an advisory group focused on the global payments industry, with over 30 years of experience providing market intelligence to corporations, executing more than 500 client engagements in the payments industry since 1991. PCMI performs custom strategic engagements, including market sizing, opportunity benchmarking, market entry, customer insights, and more, covering over 50 global markets in the Americas, EMEA, and APAC regions. Visit www.paymentscmi.com to learn more.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now