Smart Pay in South Korea

by KyongSun Kong, May 24, 2016
Industry Trends


South Korea’s payments market faced a turning point in 2015 with the emergence of smart pay, a simplified form of mobile payments made using smartphones.

In the report Smart Pay in South Korea, Celent reviews the status of the South Korean smart pay market and forecasts future trends. Conventional online payments have been complicated, requiring users to input a number of items. However, the advent of smart pay has made it possible for users to input their card information once and, thereafter, make payments merely by inputting their password.

Moreover, this payment function is not limited to online use; some versions are capable of being used to make payments offline. All indications are that smart pay will have a massive impact on the nation’s payments market.

More than 90% of survey respondents said they knew of smart pay; more than 50% had used it.

“At the moment, smart pay providers have their sights on specific demographics,” says KyongSun Kong, an analyst with Celent’s Asian Financial Services practice and author of the report. “However, each smart pay firm is also looking to expand its customer base. If smart pay providers have not clearly articulated their purpose and carved out a market space, then they risk being swept away in the maelstrom.”

This 18-page report includes one table and five figures.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

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Table of Contents

Executive Summary



Key Research Questions


Change in South Korea’s Mobile Payments Market


Smart Pay Market by the Numbers


Conditions for Continued Growth



Continued Strengthening of Security



Expanding the Scope of Offline Use Locations



Service Model Differentiation



Clearly Articulate Smart Pay Business Objectives




Leveraging Celent’s Expertise



Support for Financial Institutions



Support for Vendors


Related Celent Research


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