According to the financial sector, the average daily usage of mobile payment services last year reached 35.57 million transactions, totaling 1.1053 trillion won. This marks increases of 14.9% and 14.6%, respectively, from the previous year. Mobile payment services utilize biometric authentication methods such as fingerprints and facial recognition to process transactions.
The average daily usage and amount for mobile remittance services also saw increases of 2.9% and 7.3%, reaching 7.42 million transactions and 978.5 billion won. Notably, the transaction amounts for electronic financial service providers like Naver Pay, Kakao Pay, and Toss Pay surged by 24.6%, totaling 606.41 billion won compared to 486.85 billion won the previous year.
Prepaid balances within mobile payment platforms are also growing rapidly. As of the end of the first quarter of this year, the combined prepaid balance for Naver Pay, Kakao Pay, and Toss Pay reached 990.2 billion won, an 11.5% increase from 888.1 billion won during the same period last year. This increase indicates a shift beyond simple payment functions, as more funds are being retained and utilized within the platforms.
Big tech companies like Naver, Kakao, and Toss are leveraging user data obtained through mobile payments to expand into broader financial services, including loans, investments, and insurance. Data accumulated during transactions, such as spending patterns and frequency of use, can be utilized for personalized financial product recommendations and enhanced credit evaluations.
Industry analysts suggest that the payment features used daily by consumers are crucial touchpoints that increase platform engagement and encourage connections to other financial services. They predict that effectively linking payment data to financial services will be key to future platform competitiveness.
In response to the diminishing presence of physical cards, card companies are accelerating their digital transformation and enhancing mobile payment services. Last year, the average daily transaction volume for physical cards fell by 0.4% to 1.4 trillion won, marking a decline for the second consecutive year. In contrast, non-physical card transactions using mobile devices increased by 7.3% to 1.7 trillion won.
Card companies are not only strengthening their own app-based mobile payment features but also expanding integrations with external platforms like Apple Pay and Samsung Wallet. Major card issuers, including Shinhan Card and KB Kookmin Card, are focusing on enhancing their apps while integrating various services such as asset management, loans, and membership programs to boost platform competitiveness.
Some card companies are enhancing user convenience by expanding features like asset tracking and benefit recommendations within their apps. They are also strengthening contactless payment services based on NFC and QR codes to adapt to the shift toward mobile-centric payment environments.
The structure of card benefits is also being restructured around digital consumption patterns. There is ongoing competition to attract customers by enhancing discounts and rewards tailored to online shopping, delivery apps, streaming services, and mobile payment usage.
Industry experts believe that future competition in the payment market will extend beyond simple fee collection to a battle for data and platform dominance. The ability to connect payment services with a diverse range of financial services is emerging as a critical factor in determining market competitiveness.
An industry insider stated, "After successfully establishing mobile payment systems in the e-commerce market, mobile payment providers are now venturing into offline spaces to secure more merchants and users. The convenience already provided by online mobile payment services will be complemented by monetary benefits, while offline will focus on enhancing payment convenience as a key competitive advantage."
* This article has been translated by AI.
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