Globally, electronic payment transactions have increased at a rapid pace, thanks to the advance of IT technology and proliferation of smartphones. The number of global mobile payments is estimated to have grown at a five-year CAGR of 58% to 29m in 2014, while the transaction value reached USD325bn in the year, growing 6-fold in the past four years. Already, many global innovators such as Apple (Apple Pay),Amazon (Amazon Payment), E-bay (Paypal), Alibaba (Alipay) have tapped into mobile payment, aiming to lead the change in industry landscape.
Global Mobile Payment Analysis
According to the Korea Statistics Bureau, e-commerce transactions grew 27% y-o-y to KRW4.4trn in June, showing the fastest growth in more than three years. While some of this may have been spurred by the MERS outbreak (people choosing to stay indoors rather than shopping in department stores or supermarkets), we think the rollout of new quick payment apps/services also played a role – mobile shopping transactions grew 3 times as fast, up 80% y-o-y to KRW2.0trn. While m-commerce is still a fraction (6.7%) of total retail sales in Korea, we think the exponential growth is worth noting.
The Key Players
|
Company |
Name of service |
Time of launch |
|
LG U Plus |
Paynow |
Nov-13 |
|
e-Bay Korea |
Smile Pay |
Apr-14 |
|
LG U Plus |
Paynow Touch |
Jul-15 |
|
Samsung Electronics |
Samsung Pay |
Aug-15 |
|
Daum Kakao |
Kakao Pay |
Sep-14 |
|
LG Electronics (planned) |
Android Pay |
Oct-15 |
