Card payments in South Korea to breach $1t: GlobalData
The average frequency of credit card usage in the country grew 137.5 times in 2022.
Card payments in South Korea will grow at a compound annual growth rate (CAGR) of 4.9% between 2022 and 2026, potentially reaching $1.1t in 2026, according to a forecast by data and analytics firm GlobalData.
This has been expected because as the South Korea’s payment market has been highly developed, with most consumers preferring to use a credit card for payments.
Ravi Sharma, Lead Banking and Payments Analyst at GlobalData said that the average frequency of credit card usage in the country stands at 137.5 times in 2022, which is much higher than even developed markets like France, Canada, the US, and the UK.
Credit card was the preferred card type in South Korea in 2021, accounting for 78.7% of card payments value, mainly driven by reward benefits such as discounts and cashback associated with credit cards. Debit cards account for the remaining 21.3%. GlobalData forecasts the credit card payment value to grow at 11.6% in 2022, whereas the debit card payment value will grow at 7.9%.