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Logo of Naver Pay, Kakao Pay, and Toss / Courtesy of each company

Last December, a mother of two elementary students chose an unfamiliar payment option while traveling to Fukuoka, Japan. She used Kakao Pay, following a recommendation from a friend. Previously, she had never used the service, even in Korea.

Although she was initially hesitant about using the new technology, she couldn't pass up the opportunity for discounts and cashback. It turns out the process was easier than she had expected. All she had to do was load money into the Kakao Pay app and scan the linked QR code. At the airport, she saved about 10,000 won ($6.85) on purchases totaling 100,000 won.

"While you do need to check in advance which stores offer benefits, overall, I found it convenient. I've heard that you can get more perks in China, where mobile payment systems are more advanced. I am considering using it again when I travel there," the 39-year-old mother said.

The competition among Korea's top three mobile payment services — Naver Pay, Kakao Pay, and Toss — is extending into global markets. With the surge in demand for international travel following the end of the COVID-19 pandemic, overseas payment volumes have skyrocketed.

According to data obtained and released by Rep. Kim Hyun-jung from the opposition Democratic Party of Korea, the volume of overseas transactions has surged by 443 percent from 117.7 billion won in 2022 to 640.3 billion won last year. During the same period, the number of transactions increased by 430 percent from, 5.07 million to 29.59 million.

Travelers are bustling at Gimpo International Airport in Seoul, Feb. 2, following the end of a long Lunar New Year holiday lasting up to nine days. Yonhap

As the market grows rapidly, credit card companies have been expanding globally by offering travel cards with free currency exchange services. In contrast, mobile payment providers have focused on strengthening partnerships with local businesses. In countries like China and across Southeast Asia, QR code-based payments are far more prevalent than in Korea.

Among the big three, Toss has shown particularly rapid growth. Although it was the last of the three major players to enter the overseas payment market, it now supports transactions in 56 countries — matching Kakao Pay and closing in on Naver Pay, which operates in 66 countries.

At a recent press conference, Toss unveiled a plan to expand the adoption of "pay-by-face" and QR code payments to become a global super-app.

Naver Pay has expanded its payment network beyond UnionPay and Alipay+, adding support for GLN International and WeChat Pay last year.

Meanwhile, Kakao Pay stands out as the only service that allows international users of payment systems like PayPay and Alipay+ to make transactions at Kakao Pay-affiliated stores in Korea.

To capture more market shares, these companies are aggressively running promotions, primarily through discounts and cashback rewards for users who pay via their platforms.

"As the domestic market is already highly competitive, securing a foothold in the overseas market has become crucial. The competition is expected to intensify throughout the year," an industry official said.