South Korea Buy Now Pay Later Business and Investment Opportunities (2019-2028) Databook – 75+ KPIs on Buy Now Pay Later Trends by End-Use Sectors, Operational KPIs, Retail Product Dynamics, and Consumer Demographics

South Korea Buy Now Pay Later Business and Investment Opportunities (2019-2028) Databook – 75+ KPIs on Buy Now Pay Later Trends by End-Use Sectors, Operational KPIs, Retail Product Dynamics, and Consumer Demographics

In South Korea, consumers are increasingly adopting digital payment methods such as e-wallets and buy now pay later (BNPL) schemes. This growing adoption of digital payment services, including the deferred payment method, is similar to global trends. Notably, the increasing adoption of BNPL services among consumers in South Korea can also be attributed to the country's high credit card penetration rate. According to PayNXT360’s Q2 2021 BNPL Survey, BNPL payment in the country is expected to grow by 68.4% on annual basis to reach US$ 5,431.6 million in 2021.

A few financial technology companies are offering consumers and merchants a deferred payment option in the country. From digital wallet providers to the e-commerce giant, businesses are offering consumers a chance to split their purchases in equal monthly installments in the country.

Digital wallets such as Naver Pay and Kakao pay both offer deferred payments services for South Korean consumers. These digital wallets have a large user base, and therefore, have experienced increasing adoption for their BNPL products. Apart from these digital wallets, e-commerce companies such as Coupang have also launched their deferred payment service for consumers. While it is still in its pilot stage, the full-scale rollout of Coupang’s BNPL service is expected to disrupt the deferred payment industry in South Korea.

Moreover, in August 2020, the South Korean government considered stretching the deferred payment limit for an online platform like Naver Pay and Kakao Pay to US$830 (1 million won) from the previously set limit of 300,000 won to 600,000 won. The increase in the pay later limit is expected to boost deferred payment services in South Korea.

Medium to long term growth story of BNPL industry in South Korea remains strong. The BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 29.1% during 2021-2028. The BNPL Gross Merchandise Value in the country will increase from US$ 3,224.5 million in 2020 to reach US$ 32,536.1 million by 2028.