The shopping terrain that Corona has changed… Online credit card payments increased by more than 20%

Enter 2021.03.16 12:00

Credit card payment reduction conversion… The fourth in history, including the financial crisis
17% non-face-to-face payment ↑… 42% of password/fingerprint usage and mobile payments

Last year, credit card payments decreased due to the spread of the new coronavirus infection (Corona 19), while card payments spent on e-commerce and car purchases increased by more than 20% from a year ago. On the other hand, most industries, including travel and education, declined.

According to the ‘2020 Payment Trends’ released by the Bank of Korea on the 16th, last year’s credit card usage amounted to 2.52 trillion won on average, an increase of 0.6% from the previous year. The growth rate of card payments has decreased significantly compared to the past in 2018 (6.2%) and 2019 (5.8%).

This was affected by a 0.3% decrease in the amount of credit card payments to 1.96 trillion won per day. In the past, credit card usage declined only three times in 1998 (-9.1%), 2003 (-22.2%), and 2004 (-26.8%). .

Debit card payments also increased by 1.5% to 540 billion won a day. When looking at the amount of card payment by month, it decreased significantly during the initial period of the Corona 19 spread in March-April, but turned to an increase after May, but it turned to decrease again in December due to the re-proliferation of Corona 19 at the end of the year.

As external activities declined due to Corona 19, non-face-to-face payments increased significantly. The use of non-face-to-face payments through smartphones increased by 16.9% to 849 billion won on average per day. On the other hand, face-to-face payments decreased by 5.6% to 1.398 trillion won.

In addition, the proportion of using simple payment services through password or fingerprint recognition accounted for 41.5% of all mobile payments in the fourth quarter of last year. In particular, among the simple payment services, the proportion of services provided by fintech companies such as Naver and Kakao reached 61.7% at the same time.

As a result of examining credit card payments by consumption type last year, e-commerce transactions and automobiles increased significantly to 24.2% and 20.6%, respectively. As the amount of time spent in the home increased, consumption of furniture and appliances also increased by 6.3%. On the other hand, payments in most industries such as travel (-66.0%), education (-17.1%), and restaurants (-14.3%) were found to have decreased.

By region, use of all regions except for the metropolitan area (5.4%) decreased. The increase in the metropolitan area was found to be due to the fact that most of the large e-commerce companies such as online shopping malls are located in the metropolitan area.