13 December 2017
visit www.avoka.com

South Korea to see surge in contactless m-payments - Celent

01 October 2010  |  7782 views  |  0 iphone apps on screen

South Korea is set to see an explosion in the popularity of mobile contactless payments, with a compound annual growth rate (CAGR) of over 50% for the next few years, according to Celent.

Long seen as a pioneer in the contactless payments market, south Korea is now seeing its work finally beginning to translate into growth, says the research house.

Since 2009 the market has surged to life with mobile carriers and Korea Smart Card collaborating to aggressively roll out the Mobile T-money service. In addition a joint venture between Hana Card and SK Telecom, was launched, energising the mobile credit card market.

Celent projects that the number of pre-paid contactless payment customers will reach 4.5 million by 2012, resulting in a CAGR of 56.3%. Transactions using this method will rise by 2012 to 180 million, for a CAGR of 29.7%, and Celent expects that total value will reach $140 million, for a CAGR of 39.9%.

However, growth hinges on a number of factors, including increased penetration of mobile phones with RF antennas, the spread of suitable payment processing terminals, and new services that differentiate the method from conventional cards.

KyongSun Kong, analyst, Celent Asian Financial Services Group, says: With this innovation afoot, the prospects for growth are bright, but there are obstacles that must be overcome and potential pitfalls that must be avoided. While the country has yet to clear these hurdles to growth, 2010 has seen a number of new services announced, and it is clear that the mobile contactless payments market is continuing to evolve."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Barclaycard explores contactless future

Barclaycard explores contactless future

30 September 2010  |  14297 views  |  0 comments
US telcos team on contactless m-payments venture - Bloomberg

US telcos team on contactless m-payments venture - Bloomberg

02 August 2010  |  11763 views  |  0 comments
Visa contactless cards in issue in UK to reach 12 million by year end

Visa contactless cards in issue in UK to reach 12 million by year end

07 July 2010  |  9926 views  |  0 comments
Contactless acceptance market set to boom

Contactless acceptance market set to boom

11 November 2009  |  11905 views  |  1 comments
NTT claims 10 million mobile wallet users

NTT claims 10 million mobile wallet users

25 August 2009  |  6027 views  |  0 comments
Korean telcos and banks replace debit cards with mobile phones

Korean telcos and banks replace debit cards with mobile phones

22 December 2008  |  11163 views  |  0 comments
Visa reports m-payments schemes in Brazil and South Korea

Visa reports m-payments schemes in Brazil and South Korea

03 September 2008  |  9573 views  |  0 comments
Citi forms m-banking JV with South Korean telco

Citi forms m-banking JV with South Korean telco

06 March 2008  |  8530 views  |  0 comments

Related blogs

Create a blog about this story (membership required)
visit www.response.ncr.comvisit www.solutions.lexisnexis.comvisit www.aciworldwide.com

Top topics

Most viewed Most shared
Saxo Bank's 'Outrageous Prediction': Bitcoin to peak at $60k next year before spectacular crashSaxo Bank's 'Outrageous Prediction': Bitco...
12140 views comments | 7 tweets | 7 linkedin
Deutsche Bank paper hails 'huge' blockchain potentialDeutsche Bank paper hails 'huge' blockchai...
9326 views comments | 16 tweets | 22 linkedin
PSD2: Laying the regulatory foundation for a new age in paymentsPSD2: Laying the regulatory foundation for...
7919 views comments | 17 tweets | 35 linkedin
Santander UK poaches Barclays innovation chief Michael HarteSantander UK poaches Barclays innovation c...
7334 views comments | 8 tweets | 17 linkedin
Alior Bank to use Open API platform and accelerator to create fintech marketplaceAlior Bank to use Open API platform and ac...
7167 views comments | 20 tweets | 11 linkedin

Featured job

Competitive base, double ote, benefits
London, UK

Find your next job