Retailers Expand Mobile Payment Options for Chinese Tourists in South Korea

As the number of Chinese tourists visiting South Korea increases, the retail sector is accelerating the introduction of local mobile payment methods. With payment convenience directly linked to sales, retailers aim to enhance conversion rates by allowing tourists to pay using familiar apps.

According to the retail industry on June 25, major offline retail channels, including duty-free shops, convenience stores, and department stores, are increasingly adopting local-friendly payment options like Line Pay and UnionPay to improve payment convenience for Chinese tourists.

Notably, as the proportion of Taiwanese tourists among visitors to South Korea rises, more retailers are proactively introducing Line Pay, which is used by over half of Taiwan's population. After Shinsegae Duty Free adopted Line Pay in March, Seven-Eleven followed in April, and E-Mart 24 launched the service last month. By adding Line Pay to existing options like Alipay, WeChat Pay, and UnionPay, retailers are expanding payment choices for Chinese tourists. In fact, Seven-Eleven reported a 12% increase in Line Pay sales last month compared to the previous month.

Lotte Duty Free also introduced Line Pay for online payments last month. A Lotte Duty Free official stated, "In the first quarter of this year, sales from individual Taiwanese tourists increased by about 38% compared to the same period last year," describing the move as a strategy to capture the rapidly growing Taiwanese tourist market.

Department stores are also expanding their payment infrastructure. In September, Lotte Department Store plans to implement UnionPay QR and NFC payments across all its locations. The flagship store, located in the Myeongdong area, expects enhanced shopping convenience following the introduction of UnionPay, given the high volume of Chinese customers visiting the area.

The push for expanded payment options comes amid a surge in foreign tourists visiting South Korea. According to the Ministry of Culture, Sports and Tourism, the number of foreign tourists reached 10 million in the first half of this year for the first time. This milestone was achieved about a month earlier than last year, when the 10 million mark was crossed in mid-July. Chinese tourists accounted for the largest share at 560,000, followed by Taiwan with 190,000, Japan with 360,000, and visitors from the Americas totaling 210,000.

Foreign tourists are also spending more. In May, the total card spending by foreign tourists in South Korea, including online purchases, reached 2.1 trillion won, surpassing 2 trillion won for the first time since statistics began in January 2018.

As spending shifts from group tours to individual travelers, the importance of payment convenience is increasing. Individual tourists tend to spend directly at offline stores like duty-free shops, department stores, and convenience stores.

Retailers believe that simply offering familiar payment methods can significantly enhance the likelihood of purchases among tourists. A retail industry official noted, "For foreign customers, the ability to pay with the apps they usually use is crucial for shopping convenience. Reducing inconvenience at the payment stage is essential for converting visitor traffic into actual sales, which is why we are expanding local payment options."