The latest publication from Germany-based online research firm yStats.com, “Top Mobile Payment Services Providers in South Korea 2020 and their Reaction to the COVID-19 Crisis.” provides insights into the development of the mobile payments industry in recent months, with emphasis on the effect that the worldwide health crisis has introduced. Yücel Yelken, yStats.com founder and CEO comments on the findings of the report: “the coronavirus outbreak has strengthened the trend of mobile payments in South Korea beyond the previous significant expansion.”
Transactions made through mobile payment methods increased in South Korea during the COVID-19 pandemic
Mobile payments were particularly popular in South Korea even before the COVID-19 outbreak, accounting for a high penetration value in 2019. The practice of using mobile payment services was further boosted due to the nature of the nationwide COVID-19 lockdown. In an effort to combat the spread of COVID-19, consumers in South Korea turned to online shopping to supply their basic needs. According to a study cited by yStats.com, South Korea has seen a double-digit increase in transactions made via mobile payments in 2020 compared to 2019.
Top mobile PSPs in South Korea experience increased registrations during the health crisis
The top three mobile payment service providers in South Korea, in terms of the number of users are KakaoPay, Naver Pay, and Toss. These top players recently experienced a growing number of users on their platform. As reported by yStats.com, KakaoPay saw a significant increase in its users amidst the COVID-19 crisis. Amidst the overwhelming growth of users and transactions, service provides have introduced innovations to aid small businesses adversely impacted by the health crisis.
Amidst the pandemic, new mobile payment gateways emerge in South Korea
Since the use of mobile payment is increasing in South Korea, further developments in the payments industry have gained momentum. During the pandemic, various mobile payment service providers are emerging as strong competitors such as Samsung Pay, Payco, and Coupang. Furthermore, a report cited by yStats.com stated that Samsung collaborated with MasterCard to launch Samsung Pay Card in an effort to provide its customers with an innovative service. Another important report mentions a partnership between Payco and Apple that will support mobile payments via Payco on iOS-powered devices.