South Korea’s card payments market is poised for sustained expansion, with transaction value projected to rise at a compound annual growth rate (CAGR) of 3.7 percent between 2025 and 2029, according to GlobalData.
The market is expected to reach KRW1,510.2 trillion ($1.1 trillion) by 2029, supported by the country’s exceptionally high card penetration, robust payments infrastructure, and continued government efforts to promote cashless transactions.
New data from GlobalData’s Payment Card Analytics shows that South Korea’s total card payment value grew 4.5 percent in 2024, climbing to KRW1,255.2 trillion ($933.9 billion).
Growth is set to moderate in 2025, with payment value estimated to rise 3.8 percent to KRW1,303.4 trillion ($969.8 billion) amid already high levels of electronic payment adoption.
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Expert insight
Poornima Chinta, senior banking and payments analyst at GlobalData, comments: “South Korea’s card payments market is highly mature yet continues to expand, underpinned by near-universal banking access, high financial literacy, and extensive POS infrastructure.
The average consumer holds more than six cards and uses them nearly 100 times a year, reflecting entrenched cashless habits. Government initiatives supporting electronic payments, coupled with banks’ aggressive reward programs, are reinforcing long-term growth in card-based transactions.”
Card usage
Debit cards, while the most widely held payment product, remain underutilized for spending. Penetration is forecast to reach 343.1 cards per 100 individuals in 2025, yet debit cards will account for only 20.1 percent of total card payment value.
Usage is expected to receive a boost from new policy measures, including rules that took effect in March 2025 that allow foreign residents to open accounts and use foreigner resident cards for transactions at six major domestic banks.
Credit and charge cards continue to dominate consumer expenditure, making up 79.9 percent of total card payment value in 2025. Their popularity is driven by strong demand for rewards such as cashback, discounts, and loyalty benefits that encourage recurring usage.
Chinta adds: “Although contactless adoption remains relatively modest in South Korea, it is steadily improving and driving overall card penetration.
“Banks and schemes are actively promoting tap‑and‑go cards, and the growing number of contactless‑enabled POS terminals supported by initiatives such as Payhere’s dedicated POS for restaurants launched in January 2024 and hardware upgrades following the March 2023 arrival of Apple Pay will help lift card transaction volumes, particularly for low-value payments.”
Regulatory and structural developments
The expansion of POS terminals is improving card acceptance, particularly among small businesses targeted by government voucher initiatives.
A KRW13.8 trillion ($10.3 billion) voucher program launched in July 2025, usable via credit, debit, or prepaid cards and limited to merchants with annual sales of KRW3 billion ($2.2 million) or less, aims to stimulate consumer spending while strengthening card usage among SMEs.
At the macroeconomic level, the Bank of Korea’s decision to cut its base rate from 3.5 percent in January 2023 to 2.5 percent in May 2025 is expected to ease credit card borrowing costs.
Lower interest rates could support higher consumer spending and contribute to overall growth in card transactions throughout the forecast period.
Chinta concludes: “South Korea’s payment card market is poised for sustained growth over the next five years, supported by increasing consumer awareness of digital payments and advancements in payment infrastructure. The rise in e-commerce and contactless payments will also contribute to this growth.
“While macroeconomic uncertainty and the popularity of mobile wallets may cap upside, sustained policy support for financial inclusion, intensifying competition from digital-only banks, rising contactless adoption, and generous reward propositions on both debit and credit cards will continue to drive the expansion of card payments in the country.”
