South Korea Buy Now Pay Later Business and Investment Opportunities Databook - 75+ KPIs on BNPL Market Size, End-Use Sectors, Market Share, Product Analysis, Business Model, Demographics - Q2 2024 Update

The BNPL payments in the country are expected to grow by 16.9% on an annual basis to reach US$3.78 billion in 2024.

The medium to long-term growth story of the BNPL industry in the country remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 11.1% during 2024-2029. The BNPL gross merchandise value in the country will increase from US$3.23 billion in 2023 to reach US$6.39 billion by 2029.

Key Developments in South Korea’s BNPL Sector

Over the past six months, South Korea’s Buy Now, Pay Later (BNPL) sector has witnessed several significant product launches:

• Naver Financial’s BNPL Service: Naver Financial has broadened its payment platform by introducing a BNPL feature. This addition enables users to make purchases with deferred payments, enriching the shopping experience within Naver’s extensive e-commerce ecosystem.
• Coupang’s BNPL Introduction: Coupang, one of South Korea’s largest e-commerce platforms, has launched its own BNPL service. This initiative aims to boost transaction volumes and enhance customer retention by offering more flexible payment options.
• Toss Bank’s BNPL Expansion: Toss Bank has advanced its BNPL service, initially launched earlier. The expansion has led to increased user engagement and transaction volumes, indicating strong adoption among its customers.
• Hyundai Card’s BNPL Integration: Hyundai Card has upgraded its BNPL offerings by integrating them with its existing credit services. This move allows customers to use BNPL across various retail partners, designed to attract users seeking flexible payment solutions.

These launches underscore the rising competition in South Korea’s BNPL market, fueled by growing consumer demand for flexible payment solutions in the expanding e-commerce landscape.

Strategic Partnerships

Several notable partnerships have emerged in South Korea’s BNPL sector:

• Naver Financial and Retailers: Naver Financial has partnered with various retailers to integrate its BNPL service into their platforms. These partnerships aim to offer consumers more flexible payment options while driving increased traffic to the retailers’ e-commerce sites.
• Coupang and BNPL Integration: Coupang has introduced its BNPL service in collaboration with multiple merchants. This integration allows deferred payment options at checkout, enhancing the shopping experience and potentially increasing conversion rates.
• Toss Bank and BNPL Expansion: Toss Bank has broadened its BNPL services through partnerships with merchants. Since launching the service, Toss Bank has seen growth in payment volumes and average transaction amounts, reflecting the success of these collaborations in boosting BNPL adoption.
• Hyundai Card and BNPL Integration: Hyundai Card has collaborated with retailers to embed its BNPL service within their payment systems. This partnership leverages Hyundai Card’s existing customer base and merchant relationships, positioning BNPL as a preferred payment method.

These partnerships highlight the growing collaboration between BNPL providers, e-commerce platforms, and financial institutions in South Korea. By integrating BNPL options, these companies aim to meet rising consumer demand for flexible payment solutions and drive growth in the burgeoning BNPL market.

Mergers and Acquisitions

Recent mergers and acquisitions have significantly impacted South Korea’s BNPL sector:

• Toss Bank’s Acquisition of a BNPL Provider: Toss Bank, a leading digital bank in South Korea, has acquired a smaller BNPL provider to enhance its payment services. This acquisition aims to strengthen Toss Bank’s competitive position in the BNPL market by expanding its service portfolio and customer base.

Regulatory Changes

Over the past six months, the South Korean government has introduced significant measures to regulate the rapidly expanding BNPL sector:

New Regulatory Framework

In July 2024, the Financial Services Commission (FSC) amended the Electronic Financial Transactions Act (EFTA), introducing new requirements for BNPL providers:

• Disclosure Obligations: BNPL businesses must now clearly and transparently disclose to consumers information on fees, interest rates, and terms and conditions.
• Suitability Checks: Providers must assess a consumer’s repay ability before extending BNPL credit to prevent over-indebtedness.
• Consumer Protection Measures: The amendments establish clear regulations to protect consumers from excessive late fees and unfair practices.

Licensing Requirements: The FSC is moving towards implementing a licensing system for BNPL providers in South Korea. This initiative is expected to bring greater oversight and stability to the sector as it grows rapidly.

Alignment with Global Trends: South Korea’s regulatory approach aligns with global trends, such as those in Australia, where similar measures have been introduced to protect BNPL consumers. The new rules aim to promote responsible growth in the sector while allowing room for innovation. These regulatory changes underscore the South Korean government’s commitment to ensuring sustainable growth in the BNPL market by enhancing transparency, responsible lending, and consumer protection as the industry expands.

The BNPL payment industry in South Korea has recorded strong growth over the last four quarters, supported by increased e-commerce penetration.

This report provides a detailed data-centric analysis of the Buy Now Pay Later (BNPL) industry, covering market opportunities and risks across a range of retail categories. With over 75 KPIs at the country level, this report provides a comprehensive understanding of BNPL market dynamics, market size and forecast, and market share statistics.

It breaks down market opportunities by type of business model, sales channels (offline and online), and distribution models. In addition, it provides a snapshot of consumer behaviour and retail spending dynamics. KPIs in both value and volume terms help in getting an in-depth understanding of end market dynamics.

The publisher’s research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view of emerging business and investment market opportunities.

Scope

This report provides in-depth, data-centric analysis of Buy Now Pay Later industry in South Korea through 55 tables and 71 charts. Below is a summary of key market segments:

South Korea BNPL Market Size and Spending Pattern, 2020-2029

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

South Korea Buy Now Pay Later Revenue Analysis, 2020-2029

• Buy Now Pay Later Revenues
• Buy Now Pay Later Share by Revenue Segments
• Buy Now Pay Later Revenue by Merchant Commission
• Buy Now Pay Later Revenue by Missed Payment Fee Revenue
• Buy Now Pay Later Revenue by Pay Now & Other Income

South Korea Buy Now Pay Later Operational KPIs & Statistics, 2020-2029

• Buy Now Pay Later Active Consumer Base
• Buy Now Pay Later Bad Debt

South Korea BNPL by Purpose, 2020-2029

• Convenience - Short Term Loans
• Credit - Long Term Loans

South Korea BNPL by Business Model, 2020-2029

• Two-Party (BNPL offered by retailers)
• Three-Party BNPL Offering

South Korea BNPL by Merchant Ecosystem, 2020-2029

• Open Loop System
• Closed Loop System

South Korea BNPL by Distribution Model Analysis, 2020-2029

• Standalone
• Banks & Payment Service Providers
• Marketplaces

South Korea Buy Now Pay Later Market Share Analysis by Key Players

South Korea BNPL Analysis by Channel, 2020-2029

• Online Channel
• POS Channel

South Korea Buy Now Pay Later in Retail Shopping: Market Size and Forecast, 2020-2029

• 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, 2020-2029

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

South Korea Buy Now Pay Later in Travel: Market Size and Forecast, 2020-2029

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

South Korea Buy Now Pay Later in Media and Entertainment: Market Size and Forecast, 2020-2029

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

South Korea Buy Now Pay Later in Services: Market Size and Forecast, 2020-2029

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

South Korea Buy Now Pay Later in Automotive: Market Size and Forecast, 2020-2029

• 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, 2020-2029

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

South Korea Buy Now Pay Later in Others: 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

• Sales Uplift by Product Category
• Share by Age Group
• Share by Income
• Share by Gender
• Adoption Rationale
• Average Monthly Expense segments

Reasons to buy

• Gain a thorough grasp of the dynamics of the industry for Buy Now Pay Later: Determine key trends, market opportunities, and projections for the years 2020-2029. To keep on top of the game, utilise critical KPIs such as volume, average value per transaction, and gross merchandise value to understand market trends.
• Get market dynamics by end-use sectors and assess new prospects across various end-use sectors to quickly stay up to date on the most recent and impending developments in BNPL markets.
• Market-specific strategies include identifying growth areas that are concentrated on particular opportunities and using our unique combination of quantitative forecasting and cutting-edge insights to analyse market-specific risks and significant trends in the BNPL sector.
• Learn about the attitudes and behaviours of consumers: This study uses information from a proprietary survey to identify and interpret key Buy Now Pay Later KPIs, such as spending by age, gender, and income level.
• Create profitable and proactive business plans by utilising market research and a forward-looking study of BNPL market spend and significant prospects in South Korea.