South Korea's payment system baffles foreign tourists

In a country renowned for its cutting-edge technology, South Korea’s payment system might leave foreign visitors scratching their heads.

While locals breeze through transactions with mobile apps and credit cards, tourists are often left facing frustration—especially when it comes to public transportation and online shopping, according to the Korean media. 

In South Korea, locals often carry little more than a small purse—or nothing at all—thanks to the widespread use of credit cards and mobile payment systems. 

Long-term residents with a Korean credit or debit card generally experience few issues, but short-term visitors often face challenges, particularly in small shops or on public transportation. "Many stores claim that most cards can be used, but in reality, when using a card issued outside of Korea, payments sometimes fail due to communication errors with the store's card reader," one Reddit user shared, advising visitors to carry multiple types of cards.

Public transportation is where the frustration is most felt. Despite Korea's technological reputation, its NFC-based public transit systems do not universally accept foreign-issued payment devices. This stems from the country's reliance on its domestic payment system, PayOn, which is incompatible with most international cards. As a result, visitors must purchase a separate T-money transportation card, which can only be topped up with Korean won. While cash payments are still accepted at subway stations and some buses, many buses have already gone cashless.

"My previous experience with paying for the Seoul subway using the T-money card was quite frustrating because I'm not a fan of carrying cash," another user noted on Reddit.

The online payment experience isn’t much better. Many apps and websites reject foreign-issued cards, particularly for services requiring identity verification. This is in stark contrast to the growing trend among tourists to engage in unique local services, such as ordering late-night food deliveries.

Even foreign residents face difficulties. Anthony Martin, an expat podcast host, struggled to buy shoes online with his British card. "Of course, it failed," Martin said. "There are very few warnings when coming to Korea that this is the situation. It's quite frustrating."

The rapid digital progress in Korea, though convenient for locals, is contributing to the issue. Experts argue that modernizing the country’s payment infrastructure is essential to attracting foreign tourists and skilled workers. "It is crucial to strengthen every link in the value chain of tourism," said Jang Soo-cheong, a professor at Purdue University. "This comprehensive enhancement will be a key factor in encouraging foreign tourists to return to Korea."

By Naila Huseynova