Why are 85% of mobile phone small payments converted into cash in Korea?

Cashless payment is greatly expanding in Korean society through the rapid acceptance of smartphones. A lot of Koreans are starting to utilize their smartphones to make small but frequent payments to get their coffee, food, and finally transportation tickets. Besides, just from a majority of mobile payments in Korea, it is still in a kind of cash. An astonishing 85% of mobile phone small payments are converted into cash rather than remaining in digital form.

In many other places, mobile payments are used for their ability to make all the transactions without the need to go somewhere to cash out the money. But in Korea, the evidence shows that most users tend to hold their funds in paper cash. They do this instead of putting the funds into digital accounts. This article focuses on two reasons related to culture and purses, in case of which, 85% of Korean small mobile payments converted back into cash, not being digital within an economy.

Rise Of Mobile Payments In Korea

The preference of people for small stores, where they can pay using their phones for food and drinks is high. Yet, this is not like, in advanced countries, where only a few Koreans usually store their money in digital wallets. However, this is a bit different from other advanced countries, because only very few Koreans tend to stash their money in their digital wallets.

Explaining The Phenomenon of 85% of Mobile Phone Small Payments Converted into Cash

Korea is a performing country with an almost unimaginable amount of mobile payments drawn as cash. This reveals the cultural paradigms and economic factors. They are responsible for a strong drive among Koreans. Their 85% of mobile phone small payments are converted into cash.

Why The High Rate Of Cashing Out Digital Payments?

An incredible 85% of mobile phone small payments converted into cash. This is quite depressing because a lot of money is being left unused. There is nothing similar to this accident rate on the lips of the whole planet. To get across ‘why so many Koreans opt for the home delivery option’ we should take a look at the cultural background and past financial experience.

A Preference For Tangible Cash Over Digital Wallets

Korean people are restless when they can’t hold money with their bare hands. Electronic payments are indeed handy. But, some Koreans still hesitate to use them because they don’t want everything to be automatic. In their natural setting, they favor carrying the cash that they can see and feel by putting it into their wallet.

Cultural Attitudes Toward Cash As A Trusted Store Of Value

It is common for Koreans to believe cash is the most secure method to preserve one’s nest egg or savings. When the economy is uncertain, this is a fall in the assets’s value, and that cash retains its value. People inhabit this deep-rooted view of cash as a secure way to keep wealth. They prefer to cash out 85% of the mobile payments they earn.

Habits Formed During Past Financial Crises

The 1990s IMF bailout and the 2008 global crisis had lasting impacts. During past crashes, those who held cash could better weather currency fluctuations and bankruptcies than those reliant on electronic funds. Koreans remember these lessons. They still prefer to convert 85% of mobile payments into cash.

Final Thoughts: 85% of mobile phone small payments converted into cash

Many things from South Korea’s culture. They include societal, economic, and psychological elements. The culture centres on turning 휴대폰 소액결제 현금화 85%, not keeping them digital. In the past, Koreans trusted cash due to past economic crises. They now worry about data privacy and security due to growing online shopping. But, they still keep their money in cash as digital payments grow. The 85% proportion is a rule that may change with time, as the mindset of younger adults shows. People are attached to it for small payments, which make up many transactions in their daily lives.