Payment cards are the most preferred payment tool for e-commerce purchases in South Korea, accounting for more than half (54%) of total e-commerce transactions in 2023, with online shoppers strongly seeking secure and convenient transactions. It shows what you want. Find GlobalData, the publisher of the EPI.
GlobalData E-commerce Analytics
According to GlobalData's E-Commerce Analytics, South Korea's e-commerce market will grow by 10% to 1,503 trillion won ($115.1 billion) in 2023 as more consumers shift from offline to online purchases. Reached. The market is expected to grow by 9.1% and reach 164 trillion won ($125.6 billion) in 2024.
“Korea's e-commerce market is the third largest in the Asia-Pacific region (in terms of value), behind China and Japan,” said Purnima Chinta, senior banking and payments analyst at GlobalData. . Over the past few years, supported by the country's robust digital infrastructure, including high internet and smartphone penetration rates, as well as digital retail innovations such as the use of drones and robots for deliveries, AI-powered personalization, and live streaming, has evolved rapidly. stream shopping. ”
GlobalData Financial Services Consumer Survey
According to GlobalData's 2023 Financial Services Consumer Survey, approximately 81% of Korean consumers reported having shopped online in the past six months, while 81% of Korean consumers said they had never shopped online. was only 10.2% of the respondents.
Among various payment tools, payment cards will lead the e-commerce sector with a total market share of 54.3% in 2023. Among card types, credit cards and charge cards are very popular, accounting for 48.5% share. This is due to the value-added benefits associated with these cards, such as interest-free installment options, reward programs, cashback, and discounts.
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However, alternative payment tools are gradually overtaking payment cards, making them the second most popular payment method for e-commerce payments. This can be attributed to the security, convenience, and comfort associated with this payment method. Alternative payments will account for a total share of 32.9% in his 2023, with popular brands including his Samsung Pay, Naver Pay, and China UnionPay.
Cash accounts for only 2% of e-commerce payments, reflecting the heavy use of electronic payment methods in the country.
Chinta further added, “Korea's e-commerce market is poised to expand rapidly in the coming years.” This market is expected to grow at a compound annual growth rate (CAGR) of 9.2% from 2024 to 2028, reaching KRW 2,331 trillion ($178.5 billion) in 2028. As its popularity grows, alternative payment methods are attempting to challenge its supremacy. Cards will appear in the near future. ”
