South Korea’s prepaid card and digital wallet market is seeing a sharp shift as mobile-first fintech startups challenge the dominance of traditional financial institutions. Valued at $31.09 billion in 2025, the market is projected to grow to $39.66 billion by 2029, with a compound annual growth rate of 6.3%.
While established players like Shinhan Card, KB Kookmin Card, Woori Card, and BC Card still lead in market share, newcomers such as Toss Bank are rapidly attracting younger, tech-savvy consumers. The trend is fueled by rising demand for digital payments and the growing integration of prepaid cards with digital wallets and super apps, making payments faster, more accessible, and less reliant on physical cards.
The competitive landscape is also being reshaped by strategic investments and regulatory reforms. KB Kookmin Card's recent stake in a local fintech firm signals deeper collaboration between banks and digital platforms. Regulatory bodies such as the Financial Services Commission and the Korea Fair Trade Commission have introduced guidelines to strengthen consumer protection, fraud prevention, and fair competition. As fintech firms and banks develop more specialized solutions, ranging from corporate expense cards to cross-border payment features, the market is set to become more segmented and innovation-driven in the coming years.
