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South Korea

Mobile Commerce Clusters

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Mobile Commerce Clusters
Measures partnerships among banks, mobile networks, and governments.
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Environment

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Environment
Measures economic, technological, and demographic factors within a market.
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Infrastructure

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Infrastructure
Measures the sophistication and penetration of the mobile phone industry and NFC terminalization.
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39.7

Consumer Readiness

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Consumer Readiness
Measures how familiar with, how willing to use, and how frequently consumers are currently using all three types of mobile payments.
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Financial Services

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Financial Services
Measures the effectiveness and penetration of consumer financial products.
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Regulation

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Regulation
Measures legal and regulatory structures and how they affect businesses.
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Summary

South Korea's score of 39.7 on the MasterCard Mobile Payments Readiness Index demonstrates the importance of partnerships and Consumer Readiness for mobile payments adoption. Consumers are willing and are currently using mobile phones for both P2P payments and m–commerce. South Korea performs well in the financial services and regulatory realms. It could enhance its performance in areas like ease of doing business and improving efficiencies in the legal system that, if strengthened, could accelerate mainstream adoption of mobile payments.

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What you need to know:

South Korea needs to improve the ease of doing business and financial services affordability
Partnerships with regional mobile payments players like NTT docomo are good for long–term viability
Consumers use m–commerce (18%) and P2P (14%) more often than POS payments (6%)

Country Overview

Market Forces

The partnerships being developed among South Korean banks and mobile network operators suggest that the country is committed to mobile payments' long–term growth. Partnerships also include regional players, such as NTT docomo in Japan, focused on fostering cross–border mobile payments. To supplement an eager consumer base and growing partnerships, South Korea needs to invest in some other areas that will accelerate the adoption of mobile payments.

Partnerships are focused on mobile payments' long-term growth.

Improving regulatory factors like ease of doing business and efficiency of dispute resolution via the legal system could further encourage investment in the sector. Efforts to make financial services more affordable and competitive could lay the foundation for better coordination between banks and other members of the mobile payments ecosystem.


Consumer Sentiment

Consumers in South Korea have shown themselves to be users of mobile payments in both P2P payments and m–commerce. Currently, point–of–sale payments are used less, but that may change as the partnerships among South Korean banks and telecommunications firms, and partners abroad, start to take root.

Consumers in South Korea are more willing to use mobile phones at the point of sale than they are familiar with the capability. This suggests that with some marketing and consumer education efforts, and the improvements to the user experience that new technology brings, consumers could expand from m–commerce and P2P into POS payments as well.

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GLOBAL PERSPECTIVE ON CONSUMER SENTIMENT IN SOUTH KOREA

Relative to the Index average and leading countries, how do consumers feel about mobile payments?

54% - France
Country Score Index Average Leading Country

MasterCard Conclusion

South Korea's consumers are currently using mobile payments mainly to send money to each other and for m–commerce. The existing structures for mobile payments can be upgraded by improving the legal system's dispute resolution capabilities and by making financial services more affordable. These advances could allow for increased adoption of mobile payments at the point of sale. Closing some of these gaps can strengthen South Korea‚Äôs burgeoning partnership efforts to build mobile payments at scale, and put the country on firm footing for the future.

39.7
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