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South Korea Real Time Payments Market Size (2024 - 2029)

The South Korea real-time payments market is experiencing significant growth, driven by increased internet and smartphone penetration, rising e-commerce transactions, and supportive government initiatives. The expansion of digital wallets and payment services, along with the decline of paper-based transactions, further propel the market. Technological advancements, such as the rollout of 5G, and the digitalization of banking and financial institutions are also key contributors to the market's expansion. However, concerns over payment fraud and cyber crimes pose challenges to the market's growth. The COVID-19 pandemic has accelerated shifts in payment behavior, enhancing the adoption of real-time payments and creating new opportunities in the market.

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Market Size of South Korea Real Time Payments Industry

South Korea Real Time Payments Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 1.48 Billion
Market Size (2029) USD 7.38 Billion
CAGR (2024 - 2029) 37.91 %
Market Concentration Medium

Major Players

South Korea Real Time Payments Market Major Players

*Disclaimer: Major Players sorted in no particular order

South Korea Real Time Payments Market Analysis

The South Korea Real Time Payments Market size is estimated at USD 1.48 billion in 2024, and is expected to reach USD 7.38 billion by 2029, growing at a CAGR of 37.91% during the forecast period (2024-2029).

The primary factors which are driving the market's growth are the increased internet and smartphone penetration, growing e-commerce transactions, and government initiatives, among others.

  • The increasing ubiquity of smart devices and growing online retail commerce drive the adoption of real-time payments. In addition, rapid technological changes such as the rollout of 5G and increased smartphone penetration across South Korea encourage real-time payments. 
  • According to the ACI worldwide report, real-time payment transactions are expected to grow to 11.3 billion in 2026 in South Korea due to digitalization in banking and financial institutions. The spread of e-commerce payment transactions and the introduction of Internet banking in the past few decades are accelerating the movement toward a further diversification of the range of electronic payment and settlement systems in the region. 
  • The rapid growth of digital wallets and the expansion of digital payment services by key vendors across South Korea the declining popularity of paper-based transactions in the country as accelerated a move towards real-time payments in the region.
  • However, amid rapid growth in cyber crimes in recent years, the level of insecurity regarding payment frauds has increased, which is anticipated to remain among the major factor challenging the studied market's growth in South Korea during the forecast period.
  • Moreover, the COVID-19 pandemic accelerated major shifts in the payment behavior of South Korean users by declining the usage of paper-based payments, switching from in-store to online payment methods, and adopting instant or real-time payments. These major shifts towards real-time payments created new opportunities for major real-time players in South Korea.

South Korea Real Time Payments Industry Segmentation

Real-time Payments (RTP) or instant payments combine immediate funds availability, settlement finality, instant confirmation, and integrated information flows, all in a payment made in seconds. By bringing speed, data, and communication together, real-time payment solves longstanding challenges and is available 24/7.

The South Korean real time payments market is segmented by payment type (P2P, P2B). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

By Type of Payment
P2P
P2B
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South Korea Real Time Payments Market Size Summary

The South Korea Real Time Payments Market is experiencing significant growth, driven by the increasing penetration of smartphones and the proliferation of 3G, 4G, and emerging 5G networks. This technological advancement facilitates easy mobile payment access, propelling the market forward. The rise of e-commerce, accelerated by the COVID-19 pandemic, has led to a broader acceptance of online and cashless payment methods, such as digital wallets and real-time payments. The demand for fast, convenient payment processing solutions is further fueled by the booming e-commerce sector and the expansion of cross-border e-commerce, with major players like EMQ offering real-time payment solutions to meet consumer and merchant needs.

The market is semi-consolidated, attracting substantial investments as consumer preferences shift towards faster payment options. Key players are actively engaging in mergers and acquisitions to expand their consumer base and enhance product offerings. Strategic partnerships, such as those between Samsung and Naver, and the approval of services like Apple Pay, are expected to strengthen market leadership in mobile payments. Additionally, initiatives like Visa's expansion of its real-time money movement platform and the launch of the Federal Reserve’s instant payments system highlight the growing interest in real-time payment solutions. These developments are anticipated to further drive the adoption of real-time payments in South Korea, offering new opportunities for market participants.

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South Korea Real Time Payments Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Attractiveness-Porter's Five Forces Analysis

      1. 1.2.1 Bargaining Power of Suppliers

      2. 1.2.2 Bargaining Power of Buyers/Consumers

      3. 1.2.3 Threat of New Entrants

      4. 1.2.4 Threat of Substitute Products

      5. 1.2.5 Intensity of Competitive Rivalry

    3. 1.3 Evolution of the payments landscape in South Korea

    4. 1.4 Key market trends pertaining to the growth of cashless transaction in South Korea

    5. 1.5 Impact of COVID-19 on the payments market in South Korea

  2. 2. Market Segmentation

    1. 2.1 By Type of Payment

      1. 2.1.1 P2P

      2. 2.1.2 P2B

South Korea Real Time Payments Market Size FAQs

The South Korea Real Time Payments Market size is expected to reach USD 1.48 billion in 2024 and grow at a CAGR of 37.91% to reach USD 7.38 billion by 2029.

In 2024, the South Korea Real Time Payments Market size is expected to reach USD 1.48 billion.

South Korea Real Time Payments Market Report Snapshots

South Korea Real Time Payments Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)