South Korea Digital Wallet market was valued at US$1,228.482 million in 2019. The market of digital wallet is booming rapidly in South Korea on account of the high penetration rate of smartphones as well as the availability of high-speed internet in the country.According to the Bank of Korea, only about 20 percent of payments are made using cash in this country as South Koreans are increasingly switching to digital wallets and mobile apps to pay for goods and services for both online and offline purchases. Continuous investments by tech giants in mobile payment systems with the South Korean government eased up financial regulations in 2015 also contributes to this rapid growth of the digital wallet market in South Korea. For instance, Kakao Pay received a US$200 million investment from Alibaba's Ant Financial in 2017 on account of a rapid rise in users and transactions.
According to the 2017 Electronic Pay Service Usage report, the total volume of payments made via mobile payment services reached a record 67.2 billion won (US$57 million), up from 158.4 percent in 2016. Favorable government policies to support the expansion of mobile payment services in the country will also drive the market growth of digital wallets in South Korea during the forecast period. The country’s Financial Services Commission (FSC) has decided to open the closed inter-bank payment networks to non-bank financial companies which will likely surge the growth of the digital wallet market. The growing e-commerce industry is also providing a boost to the market growth of digital wallet in South Korea. COVID-19 pandemic outbreak has further accelerated the use of digital contactless payments in order to curb the spread of the virus.
South Korea Digital wallet market has been segmented based on the device and application. By device, the market has been segmented as PCs/laptops and smartphones. By application, South Korea digital wallet market has been classified into money transfer, recharge, movie booking, food ordering, and others.