South Korea Ranks 2nd as the Country Where Chinese People Use Mobile Simple Payment the Most

[Asia Economy Reporter Seungjin Lee] Last year, South Korea ranked second among countries where Chinese tourists use mobile payment services.

On the 23rd, Alipay jointly released the "2019 Report on Chinese Tourists' Overseas Use of Mobile Payment Services" with the research firm Nielsen.

According to the report, the amount spent overseas via mobile payments increased by 18% compared to the previous year. In particular, spending by the younger generation born in the 1990s grew by more than 35%.

The overseas use of mobile payments by Chinese tourists has expanded from Asian regions such as South Korea, Singapore, Japan, and Thailand to Europe and North America.

Mobile payment amounts in South Korea and Japan increased by about 23% compared to the previous year. 71.7% of Chinese tourists reported using mobile payments in South Korea. Following Singapore (77.2%), South Korea ranked second among countries where Chinese tourists use mobile payments. Japan (68.1%) ranked third, Australia (67.6%) fourth, and France (67.2%) sixth.

Chinese tourists have increased their use of mobile payments for shopping. Purchases at duty-free shops, fashion and beauty stores, and large discount retailers have driven the increase in mobile payment frequency.

The frequent use of mobile payments overseas by Chinese tourists and the increased spending are attributed to local retail stores and merchants actively adopting and utilizing mobile payment services. The report stated that local retailers use mobile payment platforms not only as a payment method but also as channels for store and product marketing, promotion, and discount campaigns.

Regarding this, a representative from the domestic cosmetics brand Innisfree said, "Since introducing Alipay, we have received positive responses from Chinese tourists," adding, "Mobile-based payment events and promotions have had a positive effect on revitalizing offline stores."

Jung Hyung-kwon, CEO of Alipay Korea, said, "Alipay is expanding its role from a simple payment platform to a digital marketing platform that supports local brands and retailers in promoting their products," and added, "As retailers in various countries conduct diverse customer marketing through Alipay, we will continue to increase systematic support measures."

The report is based on a survey of 4,837 Chinese overseas tourists and 163 South Korean retailers, as well as a total of 547 retailers in Singapore and the United Kingdom, analyzing the consumption tendencies and payment behaviors of Chinese tourists abroad.