Last year’s non-face-to-face payment 17%↑… 4 out of 10 in the fourth quarter of last year

As of the fourth quarter of last year, 4 out of 10 domestic payments were non-face-to-face payments.

According to statistics on domestic payment and settlement trends released by the Bank of Korea on the 16th, the average daily non-face-to-face settlement last year was 847 billion won (provisional value), up 16.9% from a year ago.

The scale of non-face-to-face payment includes not only non-face-to-face transactions such as online shopping mall payments, but also payments made by mobile devices, etc. without contacting a terminal at the transaction site.

The proportion of non-face-to-face payments among all payments continued to increase from 32.3% in the first quarter of 2019 to 36.4% in the first quarter of last year and 39.6% in the fourth quarter.

On the other hand, the size of face-to-face payment last year was 1.39 trillion won, a 5.6% decrease from a year ago.

By access device, the size of payments using mobile devices such as smartphones surged 16.4%, but the size of payments using physical cards decreased 7.4%.

This is due to the increasing number of in-person payments being made by contacting mobile devices with payment terminals instead of physical cards, Bahn explained.

The proportion of using the simple payment service for non-face-to-face payments (average of 1.0 trillion won per day) accounted for 41.5% in the fourth quarter of last year. It increased by 7.3 percentage points from the first quarter of 2019 (34.2%).

Among simple payment services, the share of services provided by fintech (financial technology) companies increased from 53.4% ​​in the first quarter of 2019 to 61.7% in the fourth quarter of last year.

The total amount of card use (average of 2.5 trillion won per day) increased by 0.6% from a year ago as consumption contracted due to the spread of Corona 19. It slowed significantly from the growth rate in 2017-2019, which reached 5-6%.

Of these, credit cards (-0.3%, 1,961 trillion won) turned to a decrease in the size of their use. In the past, credit card usage decreased only three times in 1998 (-9.1%), 2003 (-22.2%), and 2004 (-26.8%).

On the other hand, check card (+1.5%, 540 billion won) growth slowed. The amount of prepaid card payments (17 billion won) increased by 590.8% due to the use of emergency disaster support funds.

Looking at the type of credit card consumption of individuals last year, the use of e-commerce (+24.2%), automobile (+20.6%), furniture and home appliances (+6.3%) increased, but travel (-66.0%) and education ( -17.1%) and restaurants (-14.3%) decreased due to the impact of Corona 19.

By region, the scale of use in all regions except the metropolitan area (+5.4%) decreased. This is because most of the large e-commerce companies such as online shopping malls are located in the metropolitan area. Excluding this, the use of cards in the metropolitan area also decreased by 0.6%.

Last year, the amount of bills and checks paid per day averaged 18.2 trillion won, an increase of 5.6% in one year.

The amount of account transfer through the micropayment network was 72.8 trillion won on average per day, an increase of 17.8%.

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