(image: Korea Bizwire)
SEOUL, June 20 (Korea Bizwire) — The share of non-contact channels such as the Internet and mobile devices in South Korea’s money transfer market shot up to a whopping 94 percent on the back of the emergence of fintech companies and the expansion of simple payment services.
According to the data compiled by the Korea Financial Telecommunications & Clearings Institute, the number of non-contact money transfer transactions totaled more than 19 million last year.
This figure has been growing by 16 percent on average per year since 2016.
In stark contrast, the number of money transfers performed through face-to-face channels such as bank windows and ATMs has been declining by 9 percent on average per year since 2016, slipping to 1.2 million transactions in 2021.
The average transfer is getting smaller for non-face-to-face channels, while offline bank transfers are increasing in value.
The average transfer through Internet and mobile channels declined to 4.1 million won (US$3,170) on average last year from about 5 million won in 2016, while that of offline bank transfers increased from 13.5 billion won to 21.6 million won during the same period.
“The small amount transfer made a fast shift to non-face-to-face channels thanks to the expansion of mobile banking use,” the Korea Financial Telecommunications & Clearings Institute said.
“However, when it comes to the transfer of more than 10 million won, consumers still show preference towards face-to-face channels.”
Ashley Song (ashley@koreabizwire.com)
