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According to Pulse by Maeil Business News Korea,
More than half of South Koreans regularly use mobile easy payment service, reflecting a growing shift to more convenient payment options.
A survey released by Korea Financial Investors Protection Foundation on Wednesday showed that 56.8 percent of Korean adults use simple online payment solutions for purchases and transactions, up from 51.7 percent the previous year.
The study was conducted in December 2018 and based on 2,530 Koreans across the country aged 25 to 64.
Easy payment solutions allow for quicker transactions as they store credit card or bank account information on mobile phones to allow instant payment with a simple PIN number or card scan.
The country’s notoriously archaic banking security system has long been a source of frustration for Koreans and foreigners alike. Users would have to download a slew of cybersecurity programs and pass through a labyrinthine process of identity checks – from username and password to online digital certificates, one-time passwords and sometimes text message and phone call confirmations – for every online transaction.
Last year, the government vowed to do away with the cumbersome digital certification system, triggering a rapid shift among banks, card companies and payment platforms towards more simplified security software.
The simple payment trend has caught on more quickly among younger adults, with the service in use by 70.1 percent of those in their 20s and 67 percent of the 30s, according to the survey. They were followed by the 40s (58.2 percent), 50s (46.9 percent) and 60s (39.9 percent).
Users spent an average 710,000 won ($625) a month on transactions using the service, with the amount up 80,000 won from a year earlier. The monthly average spend was 600,000 won for 20s, 650,000 won for 30s, 750,000 won for 40s, 820,000 won for 50s and 720,000 won for 60s.
The most commonly used easy payment method was credit card apps, answered by 77.2 percent of the respondents. Payment platforms including Kakao Pay and Naver Pay followed with 66.4 percent, trailed by retailer services (51.5 percent) and manufacturer and mobile carrier services (38 percent).
About 26.1 percent of the respondents said they were using internet-only banks, up 4.7 percentage points from 2018. The rate here was also highest among 20s (38.5 percent) and 30s (38.3 percent), followed by the 40s (26.9 percent), 50s (15.1 percent) and 60s (10.6 percent).
By Chung Joo-won and Kim Hyo-jin
Copyrights Pulse by Maeil Business News Korea. All Rights Reserved.
Source: Pulse by Maeil Business News Korea (April 17, 2019)