South Korea Cards and Payments - Opportunities and Risks to 2024

South Korea Cards and Payments - Opportunities and Risks to 2024

  • September 2020 •
  • 57 pages •
  • Report ID: 5813099 •
  • Format: PDF
South Korea Cards and Payments - Opportunities and Risks to 2024

Summary
’South Korea Cards and Payments - Opportunities and Risks to 2024’ report provides detailed analysis of market trends in the Korean cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including cash, cards, credit transfers, direct debits, and cheques during the review-period (2016-20e).

The report also analyzes various payment card markets operating in the industry, and provides detailed information on the number of cards in circulation, transaction values and volumes during the review-period and over the forecast-period (2020e-24f). It also offers information on the country’s competitive landscape, including the market shares of issuers and schemes.

The report brings together research, modeling, and analysis expertise to allow banks and card issuers to identify segment dynamics and competitive advantages. The report also covers details of regulatory policy and recent changes in the regulatory structure.

This report provides top-level market analysis, information and insights into the Korean cards and payments industry, including -
- Current and forecast values for each market in the Korean cards and payments industry, including debit, and credit cards.
- Detailed insights into payment instruments including credit transfers, direct debits, cheques, cash, and cards. It also, includes an overview of the country’s key alternative payment instruments.
- E-commerce market analysis.
- Analysis of various market drivers and regulations governing the Korean cards and payments industry.
- Detailed analysis of strategies adopted by banks and other institutions to market debit, and credit cards.

Scope
- South Korea is observing a significant rise in the number of unmanned self-checkout stores in order to provide enhanced convenience to consumers. In January 2020, South Korean convenience store chain GS25 opened a self-checkout store in partnership with credit card issuer BC Card. Customers can enter the store by scanning a BC Paybook QR code generated in BC Card’s mobile payment app at the entry gate. Inside the store, 34 cameras monitor the shopping behaviors of customers, while 300 weight sensors detect the number of items customers choose. All items are automatically paid for at the exit via AI technology, with a mobile receipt issued instantly.
- To capitalize on the growing preference for digital banking options, banks are setting up self-service digital branches that require less human interaction. KB Kookmin Bank launched KB Digital Finance Store with smart teller machines in January 2019. The machines allow customers to use palm biometric authentication, ID scans, and video consulting to confirm their identity. Consumers can also open new regular and savings accounts, receive debit cards, withdraw cash, and perform online banking without interacting with staff. As of August 2020, these smart teller machines had been extended to 102 KB Kookmin Bank branches in South Korea.
- The entry of fintechs and digital-only banks is driving competition in the banking space, thus helping boost debit card holding. In December 2019, Toss Bank received approval from the Financial Services Commission (FSC) to operate as a digital-only bank. The bank offers the Toss Money card, a debit card that can be used for both online and offline payments as well as ATM cash withdrawals. Other digital-only banks present in South Korea include KakaoBank (launched in July 2017) and K Bank (launched in April 2017).

Reasons to Buy
- Make strategic business decisions, using top-level historic and forecast market data, related to the Korean cards and payments industry and each market within it.
- Understand the key market trends and growth opportunities in the Korean cards and payments industry.
- Assess the competitive dynamics in the Korean cards and payments industry.
- Gain insights into marketing strategies used for various card types in South Korea.
- Gain insights into key regulations governing the Korean cards and payments industry.