South Korean citizens have a penchant for swift adoption of new technology, and the uptake of ewallets is no exception. This trend is driven, in part, by South Korea's robust ecommerce sector and the nation's propensity for online spending. Ranking among the top 10 ecommerce markets globally and boasting a sizable online gaming industry, digital wallets have become indispensable for efficient and convenient payments. Notably, the fashion, grocery, and beauty industries for both men and women comprise the largest ecommerce markets in the country. Consequently, considering the imperative need for ewallet usage in South Korea, we shall delve into alternative payment methods in the country.
Are eWallets popular when shopping in South Korea?
Cards reign supreme in South Korea, with the average person possessing at least two credit cards, and the Shinhan Card being the most widely used. However, the payment method of choice varies depending on the shopping destination. A Rapyd report reveals that, for online transactions, ewallets are the preferred payment option, making them the most prevalent payment method in the digital sphere. Therefore, for online merchants, offering ewallets is paramount. Without further ado, let us explore the top payment methods in South Korea.
Top eWallets
#1 ewallet in Korea: KakaoPay
KakaoPayis a digital wallet operated by Kakao Corporation, a super app that started as a messaging platform but has expanded into other domains such as gaming. With a commanding 40.7% share of the ewallet market, KakaoPay is the go-to application for both Korean residents and merchants. It is widely utilized for peer-to-peer money transfers and in making payments online. Additionally, KakaoPay offers the convenience of offline payments through its QR code scanning feature. If you're looking to live or sell in South Korea, this app should be on the top of your list due to its widespread usage and popularity.
Naver Pay
Naver Payis another domestic application that is mainly necessary for its own marketplace. To explain, Naver is basically Google for Korea; and the search engine also has a popular ecommerce site called Naver Shopping. Naver Shopping is where Naver Pay is primarily used. It can also be used to make appointments (such as a hair appointment) via Naver Appointment scheduler. The popularity of Naver shopping and its usage for appointments is the main reason Naver Pay takes up33.5%market share.
Toss
Tossa leading fintech startup hailing from South Korea, is on a mission to become a comprehensive financial super app for its users. The application offers a wide range of services, including payments and stock purchasing. Its rewards system within the payments function is well-known, and the app is also lauded for its robust transaction security measures. These features have contributed to Toss's impressive user base, which currently stands at over 3 million users. With a sizeable 13.2% share of the market, Toss is a significant player in the fintech space in South Korea.
PAYCO
Payco is an ewallet that operates in conjunction with credit card companies, enabling credit card-like payments to be made seamlessly online. Notably, the application is renowned for its extensive network of partnerships, which have helped to establish a high acceptance rate of 90% or more among merchants. As a result, Payco is considered a reliable and trustworthy payment option by Koreans, making it a ubiquitous payment method across the country. Despite this wide acceptance, Payco only holds a 9.1% market share, placing it in fourth place among the top ewallets. While it is unclear why its market share is relatively low, Payco still generates significant payment volume and remains a prominent player in the industry.
(Market percentages taken from boku)
eromnetsupports all of these payment methods except for Naver Pay. So if a merchant uses a PSP such as eromnet for their payments, they can access nearly all of the Korean market. 🙂
If you are trying to expand into Asia as a whole, finding a solution like eromnet’sPayVersewill be vital to ensure customers can actually purchase products in a variety of nations (Taiwan, Japan, Singapore, Thailand, etc.). If you are looking to enter Korea specifically, eromnet actually has a payment platform geared for merchants going to Korea. It not only includes all the payment methods you see here, but also there is a wide variety of cards special to South Koreathat eromnet accepts. Click the underlinedlink hereto check out more information on our website!
