SEOUL, March 20 (AJP) - Digital payment transactions in South Korea continued their steady upward trajectory last year, with both transaction volume and value rising from a year earlier. Notably, the dominance of tech platforms in simplified payment and remittance services has intensified, with their market share once again surpassing the 50 percent mark.
According to data released by the Bank of Korea (BOK) on Friday, the average daily value of Payment Gateway (PG) services reached 1.55 trillion won ($1.04 billion) in 2025, a 9.2 percent increase from the previous year. The daily average number of transactions also climbed 11.8 percent to 33.64 million.
PG services, which manage the overall online payment process, include major operators such as Nice Payments, KG Inicis, Toss Payments, and Kakao Pay.
By payment method, credit cards accounted for approximately 77 percent of the total daily volume at 26.04 million cases. In terms of value, credit card payments reached 1.17 trillion won, up 12.3 percent year-on-year. Other payment methods, including "pay money" and local currencies, saw a 14.4 percent increase to 4.80 million cases (115.3 billion won). Bank transfers also rose significantly, jumping 20.2 percent to 2.00 million daily transactions.
In contrast, the use of virtual accounts—often used for wire transfers—dropped 9.0 percent to 798,000 cases as the rise of simplified payments reduced their necessity. Despite a brief rebound in 2024, the downward trend resumed last year as payment platforms became more deeply integrated into daily life.
The use of prepaid electronic payment services, where users charge funds in advance, also grew. Daily transactions rose 8.0 percent to 36.54 million, while the total value increased 11.0 percent to 1.31 trillion won.
Payments through non-bank electronic financial business operators, such as Toss Payments and Naver Pay, reached 34.21 million cases, a 7.7 percent increase from 2024. These entities saw a 10.7 percent rise in value to 1.26 trillion won, maintaining a dominant market share within the prepaid sector.
Specifically, simplified payments saw the largest growth, with transaction volume and value increasing by 31.1 percent and 27.2 percent, respectively. Simplified remittances also grew, reaching 6.95 million cases and 969.23 billion won.
While the daily value of transportation card usage edged up 1.2 percent to 13.85 billion won, the number of transactions fell 7.2 percent to 11.27 million. This decline is attributed to certain operators adjusting their data collection methods in 2025 to exclude "invalid tags," such as transit transfers.
Reliance on simplified payment and remittance services—which utilize bio-authentication or simple passwords instead of public certificates—surged to a daily average of 35.57 million transactions (up 14.9 percent) and 1.11 trillion won (up 14.6 percent).
The expanding influence of "Electronic Financial Business Operators," led by Toss and Kakao, is particularly striking. Their daily transaction volume surged 24.7 percent to 22.67 million, accounting for 64 percent of the total simplified payment volume.
The market share of these online financial platforms remained relatively stable between 49 percent and 50 percent from 2022 to 2024. However, the 4.4 percentage points jump to 54.9 percent in 2025 (by value) represents an unusually rapid acceleration in their market dominance.
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