Korea sees intensifying competition in mobile payment market

Korea sees intensifying competition in mobile payment market

최초입력 2025.06.04 10:57:46

(Apple)

Competition is heating up in South Korea’s mobile payment market as financial institutions seek new growth engines in the expanding mobile payment sector.
According to multiple sources from the financial industry on Tuesday, Shinhan Card has received approval from the Financial Supervisory Service for its terms of service related to Apple Pay.
This regulatory green light enables Shinhan Card, the second-largest credit card issuer in Korea by annual net income, to officially launch Apple Pay services in the country.
KB Kookmin Card has also applied for FSS review to introduce Apple Pay and is currently awaiting results.
Following Hyundai Card, which was the first in Korea to adopt Apple Pay, other card companies are moving swiftly to implement the service.
“More card companies are turning to Apple Pay to attract potential customers and enhance consumer convenience,” said a government official. “This trend reflects the reality that a significant portion of people in their 20s and 30s use iPhones.”
According to Counterpoint Research, Apple held a 39 percent market share in the Korean smartphone market in the fourth quarter of 2024, up 4 percentage points from the previous year, narrowing the gap with Samsung Electronics Co.’s 60 percent.
A Gallup Korea survey also found that 64 percent of people in their 20s use iPhones.
There are concerns, however, that card issuers’ additional fee burden from introducing Apple Pay may result in reduced benefits for consumers.
Unlike Samsung Pay, which is free, Apple Pay reportedly charges a 0.15 percent fee per transaction to card companies.
If Apple Pay becomes more widespread, industry insiders noted that Samsung Pay may also begin charging fees.
Also, as card companies may have to cover part of the cost for retailers to adopt Apple Pay-compatible terminals, related debates are expected to continue.
Korean platform companies, in the meantime, like Naver Corp. and Kakao Corp., are actively expanding their customer base through partnerships with banks and credit card companies.
Recently, they have even entered the stable coin-based payment space, intensifying the competition to dominate the market.
Last year, the mobile payment market reached a record high, with daily average transactions of 959.4 billion won ($695.9 million). It is widely expected to keep growing.
“As cash transactions decline and e-commerce becomes the norm, financial companies are seeking growth drivers in the expanding mobile payment sector,” said an industry insider.
Local tech giants are also forming alliances with commercial banks or pursuing mergers and acquisitions to scale up.
According to the industry, Naver Pay has recently partnered with NH NongHyup Bank for comprehensive collaboration.
They plan to introduce facial recognition payments at Hanaro Mart and are also working with NH Investment & Securities to enable stock trading through Naver Pay.
In 2024, the average daily value of mobile payment services reached 1 trillion won, up 10 percent from the previous year. The number of daily payment transactions exceeded 30.72 million.
[ⓒ 매일경제 & mk.co.kr, 무단 전재, 재배포 및 AI학습 이용 금지]

매일경제

Korea sees intensifying competition in mobile payment market

많이 본 뉴스