Korea Business News Agency - NSP NEWS AGENCY.

(Seoul=NSP NEWS AGENCY) = Although simple payment services are expanding, the share of card companies’ services within simple payment appears to be continuously decreasing. In particular, credit card companies that introduced Apple Pay showed only four to five months of inflow of new customers.

On the 6th, The Credit Finance Association held a forum on ‘Status and Prospects of the Credit Union Industry in 2024’ at the International Conference Room on the 2nd floor of the Bank of Korea.

Regarding the profitability of the payment sector for card companies, a researcher at the Financial Consumer Research Office of Korea Institute of Finance who attended the event said, “For card companies that introduced Apple Pay in March, the effect of attracting new customers tends to be short-term, lasting only about four to five months.” “There is a need to look at the impact of the expansion of simple payments on profitability from various angles.”

“It is analyzed that the number of subscribers and sales of the top 10 simple payment companies have increased 1.4 times and sales have increased 3 times in 2021 compared to the end of 2019, but it is necessary to distinguish between the increase in the proportion of simple payments and the increase in total sales,” he argued. “It’s possible that the sales boost from simple payments is already saturated or that consumers are not responding to additional simple payment services."

The position of credit card companies as simple payment service providers is also diminishing. According to the researcher, the share of services provided by credit card companies in simple payments decreased by about 10 percentage points, from 43.8% in 2019 to 33.4% in 2022.

By Soon-ki Lee(s8789@nspna.com) and Soo-in Kang(sink606@nspna.com)

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