Financial technology company Rapyd has launched its payment capabilities in South Korea, one of the world’s largest e-commerce markets, in an expansion of its Asia-Pacific footprint.
The company has partnered with leading local payment service providers to offer a comprehensive suite of payment options, including international and local cards (Hyundai Card, Shinhan Card, Samsung Card, etc.), bank transfers, mobile wallets cards (Kakao Pay, Samsung Pay, Toss, and PAYCO), virtual bank transfers, speciality vouchers, and carrier billing.
South Korea is one of the world’s top five e-commerce markets by retail sales volume, accounting for US$113 billion sales in 2019, according to eMarketer.
And Covid-19 has further contributed to the rise of digital payments in the country. According to GlobalData, South Korea’s share of cash in transaction volumes is expected to decline to 37.2% by 2023, while non-cash payments will account for two-thirds of payment volumes. The pandemic has also given rise to social distancing, which has boosted e-commerce spending.
A Rapyd survey reveals that 36% of South Koreans regard mobile wallet as their most preferred payment method. Kakao Pay was used by 41% of respondents, followed by Samsung Pay (32%), PAYCO (21%), and Toss (21%). Local cards such as Shinhan, KB, Hyundai, and Samsung Cards are the second most preferred payment methods in the country, chosen by 30% of respondents.
Rapyd says the rollout of its payment capabilities in the country will enable international companies to provide localized payment services and tap into one of the largest and most advanced e-commerce populations.
Comments Joel Yarbrough, Rapyd’s vice president for Asia-Pacific: “South Korea is setting many trends in Asia-Pacific, and digital payments are not an exception. This market is seeing fast adoption of mobile wallets, such as Kakao Pay, and is incredibly rich in payment services. While competition is heating up and the market is becoming more segmented, the overall pie of Korean mobile payments keeps growing. With the launch of Rapyd’s payment capabilities in South Korea, we are able to bridge the global e-commerce players to a vibrant and exciting Korean market opportunity, and create a truly native South Korean payment experience.”
Businesses based in South Korea will also be able to access Rapyd’s global payments network and expand into more than 100 markets around the world by accepting payments from consumers in any of the 900 locally preferred payment methods supported by the company.
Rapyd’s all-in-one payment capabilities were launched in Singapore in November 2019, followed by Brazil in March 2020, the United Kingdom in June 2020, and Mexico and India in July 2020.