Mobile payment usage in South Korea reached nearly 54 percent of total card spending during the first half of 2023, according to new data from the Bank of Korea (BOK), demonstrating the country’s continued shift toward digital payment methods. The milestone showcases South Korea’s ongoing leadership in digital payment adoption, supported by its robust digital identity infrastructure and widespread implementation of FIDO authentication standards.
The daily average spending on credit and debit cards by individuals and businesses totaled 3.51 trillion won (approximately $2.55 billion) from January to June 2023, representing a 3.7 percent increase compared to the same period in 2022.
Transactions through non-physical channels, which include mobile devices, PCs, and biometric authentication, grew by 6.3 percent year-on-year to reach 1.6 trillion won. In contrast, physical card spending decreased by 0.8 percent to 1.4 trillion won during the same period. The trend supports the country’s broader digital transformation initiatives, including the recent expansion of its I-PIN digital ID system and enhanced mobile verification services.
The proportion of payments made via mobile devices and other non-physical channels, excluding cash cards, accounted for 53.8 percent of total card transactions in H1 2023. The figure represents an increase of 1.7 percentage points from the previous year. The growth has been supported by widespread adoption of mobile payment platforms and the integration of advanced security measures, including biometric payment solutions developed through partnerships between major technology companies and financial institutions.
South Korea has consistently been at the forefront of digital payment adoption in Asia, with a highly developed mobile payment infrastructure and widespread smartphone penetration. The country’s success in digital payments is backed by robust security measures and innovative verification systems, such as the PASS mobile verification platform, which has been expanded to various sectors including healthcare and financial services. The latest figures from the BOK demonstrate the continuing evolution of the country’s payment ecosystem, as both consumers and businesses increasingly embrace digital transaction methods.
Sources: Korea JoongAng Daily
