Smart Pay in South Korea

by KyongSun Kong, May 24, 2016
Industry Trends
Asia-Pacific

Abstract

South Korea’s payments market faced a turning point in 2015 with the emergence of smart pay, a simplified form of mobile payments made using smartphones.

In the report Smart Pay in South Korea, Celent reviews the status of the South Korean smart pay market and forecasts future trends. Conventional online payments have been complicated, requiring users to input a number of items. However, the advent of smart pay has made it possible for users to input their card information once and, thereafter, make payments merely by inputting their password.

Moreover, this payment function is not limited to online use; some versions are capable of being used to make payments offline. All indications are that smart pay will have a massive impact on the nation’s payments market.

More than 90% of survey respondents said they knew of smart pay; more than 50% had used it.

“At the moment, smart pay providers have their sights on specific demographics,” says KyongSun Kong, an analyst with Celent’s Asian Financial Services practice and author of the report. “However, each smart pay firm is also looking to expand its customer base. If smart pay providers have not clearly articulated their purpose and carved out a market space, then they risk being swept away in the maelstrom.”

This 18-page report includes one table and five figures.

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 a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

1

Change in South Korea’s Mobile Payments Market

2

Smart Pay Market by the Numbers

4

Conditions for Continued Growth

8

 

Continued Strengthening of Security

8

 

Expanding the Scope of Offline Use Locations

8

 

Service Model Differentiation

8

 

Clearly Articulate Smart Pay Business Objectives

8

Conclusion

10

Leveraging Celent’s Expertise

11

 

Support for Financial Institutions

11

 

Support for Vendors

11

Related Celent Research

12

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