Mobile Payments in South Korea: Succeeding in a Diversified Market

by KyongSun Kong, January 31, 2013
Industry Trends
Asia-Pacific

Abstract

South Korea’s mobile payments market has generated a high level of interest for many years but has consistently failed to reach critical mass among consumers. However, in 2012, the entry of banks and department stores injected new life into the market.

The report Mobile Payments in South Korea: Succeeding in a Diversified Market offers an analysis of the current state of South Korea’s mobile payments market and its prospects for the future. The report provides a breakdown of the mobile payments market and looks at card-issuing data as well as total payment volumes.

The report examines the Hana SK Card, which is leading the mobile credit card segment, recording a 661.7% compound annual growth rate (CAGR) in payments from 2010 to 2012, with a CAGR of 569.5% forecast for the period 2010 to 2013.

“Major changes are under way for South Korea’s mobile payments market,” says KyongSun Kong, an analyst with Celent's Asian Financial Services Group and author of the report. “When these changes come to pass, we will see a shift in the competitive landscape.”

This report examines the range of conditions required to maintain growth in the South Korean mobile payments market and provides suggestions for firms considering adopting mobile payments services.

This 35-page report contains seven figures and two tables.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is part of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America (Boston)
Tylor Tourville
ttourville@celent.com
Tel.: +1 617 424 3284

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)208 870 7875

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81.3.3500.3023

Table of Contents

Executive Summary

1

Card Payment Trends in South Korea

2

Mobile Payments Environment

5

 

Players in the Mobile Payments Market

5

 

Proliferation of Mobile-Payment Enabled Phones

6

 

Payment Terminals

7

The Diversified Mobile Payments Market

9

 

Online Payments

9

 

Mobile Commerce Payments

10

 

Mobile Prepaid Cards

10

 

Mobile Credit Cards

13

 

Mobile E-Money

16

 

Mobile Debit Services

20

 

Barcode Payments

21

 

2D Barcode Payments

23

 

Tag Payments

23

The Advent of the Digital Wallet

24

Paving a Path to Success

27

 

Differentiation from Plastic Cards

27

 

Increasing Locations Accepting Mobile Cards

27

 

Consumer-Driven Promotion

27

 

Multifaceted Service Offerings

28

 

The Globalization of Mobile Payments

28

Conclusion

29

Leveraging Celent’s Expertise

30

 

Support for Financial Institutions

30

 

Support for Vendors

30

Related Celent Research

31

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