How to attract South Korean tourists to your business？

Cover designed by Freepik

South Korea is not only one of Asia's most dynamic economies but also one of the fastest-growing e-commerce markets globally. In recent years, the total transaction volume of e-commerce in South Korea has continued to climb, with the popularization of digital payments further driving consumption upgrades. In South Korea, consumers are used to doing everything on their phone, whether it is paying at the store, in a taxi, requesting a laundering service, ordering food, paying bills or anything else no matter how small it is. 

Furthermore, South Korean tourists have strong purchasing power, thus, for merchants looking to attract South Korean tourists, it is crucial to deeply understand their payment habits and preferred payment tools.

This article will introduce traditional payment methods like Visa and Mastercard, as well as local e-wallets such as KakaoPay, Naver Pay and Toss, to help you meet the consumption needs of South Korean tourists. It will also explain how Silkpay can assist merchants in easily accepting these payment methods in Europe and the USA.

Common payment methods used in South Korea

Visa and Mastercard

Visa and Mastercard are the most widely used international credit card brands globally, and South Korean tourists rely heavily on them. South Korea's credit card market is highly mature, with a credit card penetration rate of 95%. On average, South Korean consumers own 6.7 bank cards per person, which include both local cards issued by domestic banks and cards issued in collaboration with international organizations like Visa and Mastercard.

The high acceptance rate and global nature of Visa and Mastercard make them one of the most commonly used payment tools. From dining, retail to luxury hotels and tourist attractions, these cards are used everywhere, providing South Korean tourists with a seamless payment experience. 

Additionally, the added services offered by Visa and Mastercard, such as currency conversion, travel insurance and reward points further enhance their appeal to South Korean consumers.

But this doesn’t mean that South Korean customers all carry plastic cards with them. It is very common and natural for them to bring out their phones at the counter to pay with their Visa or Mastercard in a digital wallet. Thus, you should consider accepting digital payments too, such as Kakao Pay, Apple Pay or Google wallet or Samsung Pay.

KakaoPay

If credit card payments are the foundational need for South Korean tourists, then KakaoPay is one of their core preferences. KakaoPay is an e-wallet launched by Kakao Talk, South Korea’s most popular social app. Its functionalities go far beyond regular payment tools. 

By integrating multiple credit cards, users can set their preferred payment option based on the consumption scenario, eliminating the hassle of choosing a card for every transaction. KakaoPay also supports contactless payment methods, including NFC and QR codes, significantly improving payment efficiency.

Furthermore, KakaoPay is highly popular in South Korea, with more than 40 million users, and its usage covering a variety of scenarios, from daily shopping to cross-border remittances. 

For merchants, supporting KakaoPay not only caters to the payment preferences of South Korean tourists but also enhances the brand’s image by offering a fast and convenient payment experience.

Naver Pay

As another major local payment platform in South Korea, Naver Pay is equally popular. Launched by Naver, South Korea's largest search engine and web portal, this payment tool is primarily used for online payments and e-commerce scenarios. Since its launch in 2015, Naver Pay has gained over 26 million users and has established a strong presence in the e-commerce areas. Its average monthly transaction volume exceeds 900 billion Korean won (600 million euros), reflecting the high level of reliance South Korean consumers place on it.

For merchants, enabling Naver Pay in online stores or physical shops not only facilitates payment for South Korean tourists but also optimizes the shopping experience. This is especially beneficial for businesses looking to boost e-commerce channel sales and expand their coverage in the South Korean market.

Toss

Toss is a comprehensive fintech platform in South Korea that has gained immense popularity in recent years. Initially launched by Viva Republica, Toss first became known for its P2P transfer feature. It has since expanded to include credit card management, investment, insurance, loan comparisons, and cross-border remittance services, covering a wide range of users' financial needs.

Toss supports both online and offline transactions. Through partnerships with major South Korean banks and financial institutions, Toss provides users with a fast payment solution directly linked to their bank accounts.

For Korean tourists, Toss is not just a payment tool but also a financial assistant integrated into their daily lives. This tool covers almost all banking user groups and is particularly favored by young consumers. 

For merchants, accepting Toss in their store means meeting this core consumer group's expectations for payment convenience. This makes Toss an essential tool for enhancing the shopping experience and attracting Korean consumers.

How Silkpay helps merchants accept payments from South Korean tourists

Today, Alipay+ solution has fully integrated KakaoPay, Naver Pay and Toss. Now merchants can automatically accept all the main Korean e-wallets as well as all major e-wallets in Asia with one Alipay+ QR code provided by Silkpay.

Silkpay helps merchants quickly accept Alipay+ in-store, using the PAX A920Pro POS machine, in France, Portugal, Spain, Luxembourg, Italy, Belgium and Germany. For in-store payments, Silkpay accepts merchants from Europe and the USA. 

Through Silkpay’s integration, merchants can also accept other mainstream payment methods such as Visa, Mastercard, Apple Pay, Google Pay, and UnionPay. The entire process is simple, just let us know your requirements, and we’ll handle it all for you. 

Once you have the POS machine, you can start using it right away without worrying about anything else. 

Additionally, Silkpay can turn your smartphone into a mobile POS. By simply opening an account and downloading the Silkpay app, your smartphone can effortlessly accept Alipay+ payments, significantly enhancing the convenience and flexibility of payment.

For more details, please feel free to contact us. Silkpay will serve as your payment bridge to global tourists, helping you expand your business.

Characteristics of Korean tourists

Tech-Savvy and mobile-first

Korean tourists are highly reliant on technology, especially smartphones. They use them not only for communication and navigation but also for making payments. 

Shopping-oriented

Shopping is a significant part of their travel experience. They often look for luxury goods, cosmetics, local specialties, and souvenirs. And they will not hesitate to spend more in your store if you offer them the products they want, plus a convenient payment option.

Preference for familiar payment options

Familiarity breeds trust. Korean tourists often hesitate to use unfamiliar payment methods, especially if they feel there might be hidden fees or security risks. They gravitate towards platforms they already use back home such as KakaoPay, Naver Pay, Toss, Visa or Mastercard. South Korean tourists favor destinations that provide seamless payment experiences and discounts tailored to them.

Cultural sensitivity and politeness

Korean tourists value respectful and professional service. They appreciate merchants who go the extra mile to accommodate their cultural preferences.

Group travel enthusiasts

Many Koreans travel in groups, either with family, friends, or on organized tours. This can translate into significant purchasing power if merchants cater to their collective needs. 

If one person in the group uses a familiar payment method like KakaoPay or Naver Pay and finds it convenient, others in the group are likely to do the same. This means more people in the group could feel confident to shop at your store, and you’ll sell even more.

Conclusion

South Korean tourists’ heavy reliance on diverse payment methods offers great opportunities for merchants. Supporting international credit cards like Visa and Mastercard is the foundation for attracting them. Meanwhile, accepting local payment tools like KakaoPay, Naver Pay and Toss can further increase your appeal by providing tourists with a more superior payment experience.

In the competitive market for South Korean tourists, optimizing payment methods is not only key to enhancing service levels but also a critical step in building customer trust. Collaborate with Silkpay to create more opportunities for your business!

About the author: Silkpay

Based in Paris, Silkpay provides omnichannel and secure payment solutions to help physical stores and e-commerce in Europe and the Americas accept more than 30 of the world's most popular payment methods: Visa, Mastercard, CB, UnionPay, Alipay+, WeChat Pay as well as Asia-Pacific’s major e-wallets.

Silkpay is a winner of the LVMH Innovation Award. The company was also selected as a finalist for the "Money 20/20" Best Startup and in the "MPE Berlin” Startup Awards. Silkpay also won the "Best Fintech" awards from Capgemini and BPCE.

Silkpay helps merchants deliver the smoothest payment experience to their customers. We are a talented and international team driven by a single goal: to improve the customer experience and make payments simple and secure.