Dublin, Feb. 27, 2026 (GLOBE NEWSWIRE) — The “South Korea Prepaid Card and Digital Wallet Market Intelligence and Future Growth Dynamics Databook – Q1 2026 Update” report has been added to ResearchAndMarkets.com’s offering.
The South Korea prepaid card and digital wallet market is expected to grow by 7.5% on annual basis to reach US$31.09 billion in 2026. The prepaid card and digital wallet market in the country has experienced robust growth during 2021-2025, achieving a CAGR of 11.5%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 6.3% during 2026-2030. By the end of 2030, the prepaid card and digital wallet market is projected to expand from its 2025 value of USD 28.92 billion to approximately USD 39.66 billion.
South Korea’s prepaid-card activity is increasingly defined by platform-linked stored value that can be spent through card rails, rather than by standalone prepaid plastic sold through retail channels. The practical “prepaid” growth signals are coming from how wallet balances (e.g., Kakao Pay Money, Npay Money) are converted into everyday spend, including domestic offline acceptance and cross-border usage.
Over the next phase, prepaid outcomes will be shaped by two Korea-specific forces.Super-app distribution and wallet-first payment habits, and a higher compliance baseline for payment flows adjacent to prepaid, especially around safeguarding and settlement discipline following recent e-commerce payment disruptions and related regulatory responses.
Current state of prepaid card
- Prepaid in South Korea is increasingly delivered as wallet-linked spend rather than a standalone prepaid card program, which changes how competitors win: distribution and daily engagement matter as much as issuance. Public indicators of stored-value scale (e.g., Kakao Pay Money balances crossing KRW 2 trillion in late 2025 reporting) reinforce that the “prepaid wallet balance” layer is commercially meaningful.
- At the same time, the operating environment is becoming more supervision-heavy around adjacent payment flows such as PG settlement and unsettled funds. The December 2025 FSC revisions create a structural incentive for platforms and partners to select providers with stronger safeguarding and reconciliation discipline.
Key players and new entrants
- Key competitive centers include major platform wallets (notably Kakao Pay and Naver Pay) that can steer payment behavior through their apps, and established card/financial institutions that provide issuance, risk, and network connectivity. The product emphasis is on converting platform value into ubiquitous spend rather than expanding “prepaid plastic” distribution.
- Innovation is also evident in propositions aimed at new user segments and contexts (e.g., travel and inbound visitors), where infrastructure players such as BC Card have launched new payment-enabling services (e.g., passport-linked payments for foreign visitors). These moves suggest the competitive perimeter is widening beyond traditional prepaid into identity-enabled payment access.
How the competitive landscape is expected to shape up (next 2-4 years)
- Competition is expected to tighten around ecosystem control of spend: platforms will push to make their wallets the default funding source, while issuers and infrastructure providers will compete to be the trusted, regulated backbone. Travel and cross-border propositions should remain a major battleground because they are measurable, high-frequency in peak seasons, and sensitive to fees and FX experience.
- The other axis will be operational credibility under higher regulatory expectations, particularly around safeguarding, settlement, and refund handling in payment flows adjacent to prepaid. The FSC’s December 2025 PG revisions indicate that compliance posture can directly influence partnership eligibility and commercial terms.
Wallet-led “money cards” are becoming the default prepaid form factor
- Prepaid value is increasingly issued and held on major platforms and then spent via an associated card product (for example, Kakao Pay’s card propositions linked to Kakao Pay Money, and Naver Pay’s Npay Money Card ecosystem, highlighted through product refreshes and anniversary campaigns).
- Korea already has high mobile wallet usage, so prepaid propositions within super apps reduce friction: users top up, manage balances, and spend without switching contexts. The scale of stored value is evident in public disclosures; for example, Kakao Pay reported that its Kakao Pay Money top-up balance exceeded KRW 2 trillion (as reported in late 2025), reinforcing why “wallet balance + card acceptance” matters commercially.
- This trend is likely to intensify because platform ecosystems can iterate features (rewards, FX, controls) faster than traditional “prepaid-only” distribution. Competitive differentiation will move toward where the balance can be spent (acceptance depth) and how safely it is operated (controls and dispute handling).
Cross-border and travel-led prepaid propositions are scaling through platform-issuer partnerships
- Platforms are packaging prepaid/spend-from-balance cards around overseas usage and travel economics. A concrete example is Kakao Pay’s “Travel Log Check Card,” launched in partnership with Hana Card, which splits domestic vs. overseas spend flows and ties into Hana’s travel proposition.
- Korean consumers have high card usage and are frequent cross-border ecommerce and travel users; travel-led pricing (FX spreads/fees) is a strong lever to win primary spend. Partnership models let platforms combine their user base and engagement layer with issuer infrastructure and network acceptance.
- Expect more travel-linked prepaid/check card variants and more “hybrid” structures that prioritize wallet balances domestically while optimizing overseas value. The main constraint will be fraud controls and regulatory expectations as cross-border spend and ATM usage rise.
Compliance expectations are rising for payment flows adjacent to prepaid after settlement incidents
- South Korea is tightening rules and supervision in areas that affect stored-value ecosystems, especially payment gateway (PG) settlement and user fund protection. In December 2025, the Financial Services Commission (FSC) promulgated revisions requiring PG services to externally manage 100% of unsettled funds and to strengthen supervisory provisions.
- The regulatory agenda is linked to the risk revealed by e-commerce payment/settlement disruptions and delayed payouts. The policy focus is to reduce the likelihood that consumer-facing payment flows, often linked to wallets, stored value, and refunds, cause systemic consumer harm.
- This will raise the operating bar for participants supporting prepaid-linked journeys (platforms, PGs, processors, and program partners). Expect stronger emphasis on fund segregation, reconciliation discipline, and clearer accountability across the value chain.
Inbound and visitor payments are being productized through “prepaid-like” rails
- Korea is introducing new mechanisms to streamline visitor payments, reducing friction for inbound spend. For example, BC Card announced a passport-linked payment service for foreign visitors (December 2025), reflecting the direction of travel: simplifying how non-residents pay at Korean merchants.
- Korea’s retail and tourism sectors benefit when visitors can pay without complex onboarding. Solutions that reduce identity/verification friction while remaining compliant can unlock incremental spend in merchant categories that otherwise rely on cash or limited-access methods.
- This should expand, especially around tourism corridors and major retail chains, but execution will depend on regulatory comfort with identity linkage, consumer protection, and dispute processes for non-residents.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 159 |
| Forecast Period | 2026 – 2030 |
| Estimated Market Value (USD) in 2026 | $31.09 Billion |
| Forecasted Market Value (USD) by 2030 | $39.66 Billion |
| Compound Annual Growth Rate | 6.3% |
| Regions Covered | South Korea |
Overview of Prepaid Cards and Digital Wallet Market
Prepaid Card Market Analysis
- Metrics Assessed: The study examines the prepaid card market through various lenses, including transaction value, transaction volume, average transaction value, load value, and the total number of cards in circulation.
- Card Types: A distinction is made between open-loop and closed-loop prepaid cards, providing insights into their respective market shares and growth trajectories.
- Usage Categories: The report segments the prepaid card market into various categories such as general-purpose cards, business and administrative expense cards, travel forex cards, and meal cards.
- Business Segmentation: Further segmentation is provided based on business size and type, including small-scale businesses, mid-tier businesses, enterprise-level businesses, government entities, and retail consumers.
- Sector-Specific Applications: The analysis extends to specific sectors utilizing prepaid cards, including transit and toll payments, healthcare and wellness services, social security and other government benefit programs, fuel purchases, utilities, and more.
Digital Wallet Market Insights
- Key Segments: The digital wallet market is dissected across five primary spending categories: retail shopping, travel, entertainment and gaming, dining establishments, and recharge and bill payments.
- Performance Metrics: For each segment, the report evaluates transaction value, transaction volume, and average transaction value, offering a granular view of consumer spending behaviors.
- Retail Spend Breakdown: An in-depth analysis is provided for retail spending via digital wallets, covering categories such as food and grocery, health and beauty products, apparel and footwear, books, music and video, consumer electronics, pharmacy and wellness, gas stations, restaurants and bars, toys, kids and baby products, services, and other miscellaneous categories.
Virtual Prepaid Card Market Segmentation
- Categories Analyzed: The virtual prepaid card market is segmented into key categories, including general-purpose cards, gift cards, entertainment and gaming cards, teen and campus cards, business and administrative expense cards, payroll cards, meal cards, travel forex cards, transit and toll cards, social security and other government benefit program cards, fuel cards, utilities, and other miscellaneous categories.
- Performance Evaluation: For each category, the report assesses transaction value, providing insights into the adoption and usage patterns of virtual prepaid cards across different consumer segments.
Consumer Usage Trends
- Age Groups: Identifying usage patterns across different age demographics.
- Income Levels: Analyzing how income brackets influence prepaid card adoption and usage.
- Gender: Examining differences in usage trends between genders.
For more information about this report visit https://www.researchandmarkets.com/r/v72bmv
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- South Korean Prepaid Card and Digital Wallet Market
