A digital wallet is a type of electronic gadget or online service that enables users to conduct transactions online. It enables customers to make purchases using their smartphones when combined with mobile payment systems. Digital wallets are capable of storing more than just financial transactions. They can also keep track of the user's health, loyalty, and driver's licence information. This multitasking improves user ease and considerably boosts the appeal of the digital wallet.
South Korea Digital Wallet Market Driving Factors and Challenges
The rising consumer preference for cashless transactions is a major factor in the expansion of the South Korean digital wallet business. Consumers are choosing digital transactions more and more because of their convenience and quickness as the nation's digital infrastructure develops. The growing use of smartphones and the creation of cutting-edge mobile networks like 5G are two factors that are supporting this shift to digital payments. Additionally, the rise of the South Korean digital wallet market is being fuelled by the growing use of digital wallets across numerous industries. Businesses in the retail sector are using digital wallets to speed up transactions and improve customer experience. Digital wallets are also being used by the travel and tourist industry to offer convenient booking and payment options. Additionally, the growing fin tech sector in South Korea is assisting in the expansion of the country's digital wallet market by providing cutting-edge solutions that take into account shifting consumer preferences.
The South Korean government's encouraging measures for technological innovation have helped the market for digital wallets grow even further. A supportive environment has been created for the industry through initiatives to promote a cashless society, such as the creation of regulatory sandboxes for fin tech companies. Additionally, continued technological developments in security solutions are anticipated to reduce hazards, driving the expansion of the South Korean digital wallet market.
However, one of the biggest barriers to the business is the lack of widespread adoption of digital wallets due to the fact that many regions and countries have their own payment systems. Security and privacy concerns provide significant barriers for the digital wallet industry given that cyber-attacks and data breaches pose a considerable danger to users of digital wallets. The high cost of developing and maintaining digital wallet systems, the need for a robust infrastructure, and regulatory compliance are additional significant industry restraints.
Impact of COVID-19 on South Korea Digital Wallet Market
The South Korean digital wallet market was impacted by the COVID-19 pandemic, resulting in a decline in transaction volume and value during lockdowns. However, the value per transaction increased as people started making bulk purchases of essentials online. The use of physical cash decreased significantly within days of the lockdown, leading stores to encourage cashless transactions and contactless technology adoption. To drive digital payments, businesses are targeting the unbanked population and implementing relevant regulations. On the other hand, the market has expanded due to the pandemic's social distancing measures, prompting widespread adoption of online payment systems by government and businesses. Adjustments are needed as the COVID-19 situation remains uncertain.
South Korea Digital Wallet Market Key Players:
The market study provides market data by competitive landscape, revenue analysis, market segments and detailed analysis of key market players such as; Coupang, Inc., Eleventh Street Co., Ltd., Kakao Corporation, Naver Financial Co., Ltd, NHN Payco Co., Ltd., PayPal Payments Private Limited, Samsung Electronics Co. Ltd, TosPayments Co., Ltd, Others.
South Korea Digital Wallet Market Segmentation:
By Mode of Payment: Based on the Mode of Payment, South Korea Digital Wallet Market is segmented as; Proximity, Remote Payment.
By Device: Based on the Device, South Korea Digital Wallet Market is segmented as; PC/Laptops, Smartphones.
By End Use: Based on the End Use, South Korea Digital Wallet Market is segmented as; Corporate, Personal.
By Industry Vertical: Based on the Industry Vertical, South Korea Digital Wallet Market is segmented as; Aerospace, Automotive, Banking Financial Services and Insurance, Education, Gaming, IT and Telecommunications, Media and Entertainment, Retail, Others.
By Region: This research also includes data for East South Korea, Southeast South Korea, Southwest South Korea, West South Korea.
This study also encompasses various drivers and restraining factors of this market for the forecast period. Various growth opportunities are also discussed in the report.