As smartphone payments have become commonplace in convenience stores and supermarkets in South Korea, electronic payment systems using smartphones are also being implemented in North Korea.
The discovery was revealed in a report published on the 16th (local time) by Martin Williams and Natalia Slavny, researchers at the U.S. think tank Crimson Center, which operates the North Korea-specialized media outlet 38 North.
According to a DailyNK report, it was found that 6 out of 10 residents in Pyongyang and 4 out of 10 residents in the suburbs of Pyongyang are using smartphones to purchase goods. It is expected that more people will now be using electronic payment systems via smartphones.
However, it was reported that most still use cash, as the right conditions for using the electronic payment system still need to be established in the shops in the provinces.
In North Korea, various electronic payment systems such as Jeonseong, ManmulSang, and Ullim are being used. Among them, ManmulSang is an electronic payment system which was developed during the COVID-19 period.
Unlike South Korea’s electronic payment systems, which use Magnetic Secure Transmission (MST) or Near Field Communication (NFC), North Korea mainly uses QR codes. After entering the user’s personal and billing information into the application, payments are made through the generated QR code.
The report mentioned convenience as a reason the electronic payment system could be activated in North Korea. Users do not need to carry a lot of cash, which can reduce worries about pickpocketing.
The report also analyzed how North Korean authorities’ encouragement of using electronic payment systems for efficient monitoring impacted the system’s expansion.
The report explained, “When a QR code is scanned in a store for electronic payment, the authorities can check the purchase history, which has better surveillance benefits over cash transactions.”