South Korea Buy Now Pay Later Business and Investment Opportunities Databook – 75+ KPIs on Buy Now Pay Later Trends by End-Use Sectors, Operational KPIs, Retail Product Dynamics, and Consumer Demographics - Q1 2022 Update

South Korea Buy Now Pay Later Business and Investment Opportunities Databook – 75+ KPIs on Buy Now Pay Later Trends by End-Use Sectors, Operational KPIs, Retail Product Dynamics, and Consumer Demographics - Q1 2022 Update

Report Description

According to PayNXT360’s Q4 2021 BNPL Survey, BNPL payment in South Korea is expected to grow by 76.0% on annual basis to reach US$ 5389.0 million in 2022.

Medium to long term growth story of BNPL industry in South Korea remains strong. The BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 36.6% during 2022-2028. The BNPL Gross Merchandise Value in the country will increase from US$ 3062.4 million in 2021 to reach US$ 35074.6 million by 2028.

In South Korea, consumers are increasingly shifting towards the usage of digital payment methods such as e-wallet and buy now, pay later (BNPL) schemes. The growing adoption of digital payment services, including the split payment method, is similar to global trends. Moreover, the rising adoption of BNPL products among consumers in South Korea can be partly attributed to the growth in online shopping and partly to the high credit card penetration rate among consumers in the country.

South Korean BNPL firms are raising funds through IPOs for further expansion

In the midst of the growing demand for BNPL products by consumers in the country, BNPL firms are raising funds to further boost their growth in South Korea. Instead of raising funds from venture capital, South Korean firms are opting for the public issue to raise funds in the country. For instance,
• Kakao Pay, the online payment service that offers consumers a split payment service, issued a public offering to raise a funding round in the country. The firm raised US$1.3 billion at a valuation of US$9.9 billion.
• The firm marked its market debut with a surge of 114% on the KOSPI exchange. The firm is planning to use the IPO proceeds to speed up its global expansion plans, including its presence in Southeast Asia, China, and Europe.

The global expansion plans of the South Korean BNPL service come at the point when the global BNPL sector is expected to record robust growth over the next four to eight quarters. As the sector continues to grow in South Korea, PayNXT360 expects more firms to raise funding rounds to boost their growth.

Global BNPL companies are expanding their reach in the growing South Korean market

As the medium to long-term growth story of the BNPL sector in the country remains strong, global BNPL firms are planning to expand their footprint in the growing South Korean market. For instance,

• In November 2021, Singapore-based BNPL platform, Pace, announced that the firm is planning to expand its international presence by launching its deferred payment product for consumers in South Korea. The announcement from the firm came after it raised US$40 million in its Series A funding round from investors, including Japan’s Marubeni Ventures, South Korea’s Atinum Partners, Taiwan’s AppWorks, and Indonesia’s Alpha JWC, among others.
• Apart from South Korea, the firm is also planning to expand its services in other emerging markets such as Japan and Taiwan. Moreover, the firm is also planning to use the newly infused capital to expand its technology and business development so as to boost its user base and total transaction value on the BNPL platform.

Domestic BNPL firms are entering into strategic partnerships with global commerce platforms

Cross-border commerce is gaining increasing traction globally, and South Korea is no different. As a result, BNPL platforms are entering into a strategic alliance with global commerce providers, allowing consumers to pay for their purchases using the split payment service. For instance,
• In December 2021, domestic BNPL player Kakao Pay entered into a strategic partnership with Bango, the global platform for data-driven commerce. Under the collaboration, the merchant network of Bango will be able to reach tens of millions of users in South Korea to collect payments online.

PayNXT360 expects more such strategic partnerships between BNPL platforms and global commerce providers in South Korea over the next four to eight quarters, which will subsequently assist the growth of the overall BNPL industry in the country from the short to medium-term perspective.

Scope

This report provides in-depth, data-centric analysis of Buy Now Pay Later industry in South Korea. Below is a summary of key market segments:
South Korea BNPL Market Size and Spending Pattern
• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis
South Korea Buy Now Pay Later Operational KPIs
• Buy Now Pay Later Revenues, 2019 – 2028
• Buy Now Pay Later Share by Revenue Segments
• Buy Now Pay Later Merchant Commission, 2019 – 2028
• Buy Now Pay Later Missed Payment Fee Revenue, 2019 – 2028
• Buy Now Pay Later Pay Now & Other Income, 2019 – 2028
• Buy Now Pay Later Accounts, 2019 – 2028
• Buy Now Pay Later Bad Debt, 2019 – 2028
South Korea Buy Now Pay Later Market Share Analysis by Key Players
South Korea Buy Now Pay Later Spend Analysis by Channel: Market Size and Forecast
• Online Channel
• POS Channel
South Korea Buy Now Pay Later in Retail Shopping: 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 in Home Improvement: 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 in Leisure & Entertainment: 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 in Healthcare and Wellness: 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 in Other: 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
• Buy Now Pay Later Sales Uplift by Product Category
• Buy Now Pay Later Spend Share by Age Group
• Buy Now Pay Later Gross Merchandise Share by Income
• Buy Now Pay Later Gross Merchandise Value Share by Gender
• Buy Now Pay Later Adoption Rationale Gross Merchandise Value Analysis

Reasons to buy

• In-depth Understanding of Buy Now Pay Later Market Dynamics: Understand market opportunities and key trends along with forecast (2019-2028). Understand market dynamics through essential KPIs such as Gross Merchandise Value, Volume, and Average Value Per Transaction.

• Insights into Opportunity by end-use sectors – Get market dynamics by end-use sectors to assess emerging opportunity across various end-use sectors.

• Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate BNPL strategy; assess market specific key trends, drivers, and risks in the BNPL industry.

• Get Insights into Consumer Attitude and Behaviour: Drawing from proprietary survey results, this report identifies and interprets key Buy Now Pay Later KPIs, including spend by age, gender, and income level.