South Korea Buy Now Pay Later Markets and Investment Report 2022: Payments are Expected to Grow by 55.8% to Reach $8,734.3 Million by the End of 2022 - Forecast to 2028

DUBLIN, Nov. 28, 2022 /PRNewswire/ -- The "South Korea Buy Now Pay Later Business and Investment Opportunities Databook - 75+ KPIs on Buy Now Pay Later Trends by End-Use Sectors, Operational KPIs, Retail Product Dynamics, and Consumer Demographics - Q3 2022 Update" report has been added to  ResearchAndMarkets.com's offering.

According to the publisher, BNPL payments in the country are expected to grow by 55.8% on an annual basis to reach US$8,734.3 million in 2022.

Medium to long term growth story of BNPL industry in South Korea remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 27.0% during 2022-2028. The BNPL Gross Merchandise Value in the country will increase from US$5,604.5 million in 2021 to reach US$36,652.9 million by 2028.

Over the last two years, the buy now pay later (BNPL) segment has recorded strong growth in the global market. With its success among the merchants and consumers, several Fintech firms have entered the space to gain market share in the flourishing industry. While the industry has recorded strong growth globally, it is still in its nascent stage of development in South Korea.

Notably, in South Korea, Fintech firms, along with e-commerce marketplaces, have already joined the BNPL bandwagon and are gaining increasing traction from consumers as the popularity of the deferred payment method continues to grow in the country. Amid this growing demand for BNPL payment methods in South Korea, more and more players, including global and domestic, are expected to enter the industry to capture market share.

The presence of global as well as domestic players in the BNPL segment is expected to further drive innovation in the space, which will subsequently lead to more growth in the industry over the next three to four years.

E-commerce and Fintech firms are using BNPL as a marketing tool to gain more traffic for their services in South Korea

To build customer loyalty and drive more traffic for their services in South Korea, e-commerce and Fintech firms are using BNPL as a marketing tool in the country. Coupang and Naver Financial have already launched the services for South Koreans and are expecting higher transaction volumes through the payment method. With the rising adoption of such solutions, more Fintech firms in the country are launching the service to gain traffic for their services. 

In March 2022, Toss Bank, the digital-only bank in South Korea, launched a BNPL service for its users. After the launch of the BNPL service, the firm claimed to have experienced a rise in Toss Payments and rising monthly payment amounts.

Along with these players, traditional finance firms, such as credit card companies, are also actively offering the BNPL service in South Korea. 

In July 2022, Hyundai Card started offering BNPL service to its customers in South Korea. On the other hand, KB Kookmin Card is planning to introduce the BNPL service in partnership with Danal. Similarly, Shinhan Bank is also considering a BNPL launch in partnership with NHN Payco.

As the payment method continues to gain strong traction among South Koreans, the publisher expects more and more firms across different industries to use BNPL as a marketing tool for driving their growth and building customer loyalty.

Global BNPL providers are eyeing an expansion in the South Korean market amid increasing customer demand

In South Korea, BNPL has gained widespread popularity and is expected to gain further traction over the next three to four years. To capitalize on this high-growth potential, global firms are eyeing an expansion in the South Korean BNPL industry. 

Atome, one of the leading BNPL players in the Southeast Asian market, announced that the firm is eyeing an expansion in the South Korean BNPL industry by the end of 2022. This will make Atome one of the BNPL providers that cover most of the markets in Asia. The Singapore-headquartered firm has a presence in Indonesia, Vietnam, the Philippines, Malaysia, Thailand, Hong Kong, China, Japan, and Taiwan. The firm has partnered with 10,000 merchants, has over 20 million users in Asia, and has disbursed US$1 billion in over 15 million transactions.

Notably, Atome is not the only Singapore-based BNPL provider planning to expand in South Korea. 

In November 2021, Pace, another Singapore-based BNPL firm, announced that the firm is planning to expand its presence in South Korea after raising a US$40 million funding round.

As the BNPL market in South Korea continues to mature and grow over the next three to four years, the publisher expects more global firms to launch their operations in the country and tap into the growing demand for deferred payment services among consumers.

Scope

South Korea BNPL Market Size and Spending Pattern

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

South Korea Buy Now Pay Later Operational KPIs

• Buy Now Pay Later Revenues, 2019 - 2028
• Buy Now Pay Later Share by Revenue Segments
• Buy Now Pay Later Merchant Commission, 2019 - 2028
• Buy Now Pay Later Missed Payment Fee Revenue, 2019 - 2028
• Buy Now Pay Later Pay Now & Other Income, 2019 - 2028
• Buy Now Pay Later Accounts, 2019 - 2028
• Buy Now Pay Later Bad Debt, 2019 - 2028

South Korea Buy Now Pay Later Market Share Analysis by Key Players (Naver Pay, Kakao Pay, Coupang Pay, Rely Pay Later)

South Korea Buy Now Pay Later Spend Analysis by Channel: Market Size and Forecast

• Online Channel
• POS Channel

South Korea Buy Now Pay Later in Retail Shopping: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

South Korea Buy Now Pay Later in Home Improvement: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

South Korea Buy Now Pay Later in Leisure & Entertainment: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

South Korea Buy Now Pay Later in Healthcare and Wellness: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

South Korea Buy Now Pay Later in Other: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

South Korea Buy Now Pay Later Analysis by Consumer Attitude and Behaviour

• Buy Now Pay Later Sales Uplift by Product Category
• Buy Now Pay Later Spend Share by Age Group
• Buy Now Pay Later Gross Merchandise Share by Income
• Buy Now Pay Later Gross Merchandise Value Share by Gender
• Buy Now Pay Later Adoption Rationale Gross Merchandise Value Analysis

For more information about this report visit https://www.researchandmarkets.com/r/fvi6vh

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