South Korea to Launch Open-Loop Payment System for their Public Transport, Streamlining Travel for the Tourists and Boosting Future Tourism Revenue Growth

Published on December 16, 2025

For foreign visitors, South Korea is introducing an open-loop payment system for public transportation that will allow international credit cards like Visa and Mastercard to make payments in travel, such as on buses, subways, and even free transfers between different transport modes. It will be fully implemented by 2027 and should have the result of decreasing the number of tourists who will trip over South Korea’s public transport system because it will be much easier.

Open-Loop Payment System: Enhancing Traveler Experience

The open-loop payment system allows travelers to use globally recognized credit cards for transactions across multiple transport networks, eliminating the need for local transit cards or ticket purchases. For international tourists, this means they can simply tap their credit card to pay for rides without the hassle of buying and topping up local cards. The system is expected to significantly enhance the travel experience, especially for those visiting Seoul, Busan, and other major cities in South Korea.

Currently, South Korea’s public transport system does not support open-loop payment systems for international credit cards. The government’s feasibility study will explore the necessary steps and infrastructure required to integrate this system across the country, with the goal of making travel easier for tourists and improving operational efficiency in the long term.

Seamless Travel and Future Benefits for Tourism Revenue

The introduction of open-loop payments will not only simplify travel for visitors but will also have significant long-term benefits for South Korea’s tourism revenue. By reducing the complexity of travel logistics and ensuring a seamless experience for tourists, the country is positioning itself to attract even more international visitors in the years ahead.

Tourists will no longer need to spend time queuing for local transit cards or worry about topping up their balances. Instead, they can use their global credit cards, making public transport more accessible and user-friendly. This will likely increase tourist satisfaction, leading to higher repeat visits and positive word-of-mouth, which are crucial drivers for tourism growth.

Phased Roll-Out and Integration with Existing Free Transfer System

The open-loop payment system is expected to be introduced in phases across different regions of South Korea, in collaboration with local governments. One of the key considerations for the project will be ensuring compatibility with the existing free transfer system, particularly in Greater Seoul and Busan, where passengers can switch between buses and subways without additional costs. This integration will enhance the convenience for visitors who already benefit from no-cost transfers, making the entire travel experience more attractive.

The government’s phased approach allows for gradual implementation, ensuring the system is fully tested and optimized before its nationwide roll-out. The long-term impact will be a more efficient, streamlined transport network that caters to both domestic commuters and international visitors, enhancing the overall tourism experience.

Boosting Future Tourism Revenue: Seamless Travel and Increased Tourist Spend

One of the key future advantages of the open-loop payment system will be its positive impact on tourism revenue collection. By simplifying the payment process for tourists, South Korea can expect increased visitor spending in various areas. As travel becomes more efficient, tourists will have more time and energy to explore the country, spend on local attractions, and contribute to the hospitality and retail sectors.

The seamless payment system will likely lead to higher tourist satisfaction, with fewer barriers to travel and enhanced ease of access to South Korea’s vast cultural and recreational offerings. This ease of movement will encourage more tourists to visit multiple cities, stay longer, and spend more—ultimately boosting tourism revenue across the nation.

Long-Term Economic Impact and Global Competitiveness

As global tourism continues to recover and grow, South Korea’s adoption of open-loop payments will position it as a technologically advanced and tourist-friendly destination. In the long run, this system is expected to improve South Korea’s competitiveness in the global tourism market, particularly as international tourists increasingly seek destinations that offer convenience and modern amenities.

The system also promises to increase cross-border tourism by attracting visitors from countries where global credit cards are widely used, further strengthening South Korea’s tourism economy. By offering a world-class travel experience, South Korea can capitalize on the global trend toward digital integration in travel and tourism services, ensuring continued growth in tourist numbers and tourism spending.

Future Impact on Tourism Ecosystem: Supporting Sustainable Growth

The open-loop payment system is a key step in ensuring sustainable tourism growth. By reducing friction for tourists and enabling them to engage seamlessly with local services, South Korea is fostering long-term tourist satisfaction while contributing to the sustainable growth of the tourism sector. This initiative aligns with global trends toward digital solutions that offer greater accessibility and convenience in tourism management.

In the future, other countries and regions with robust public transportation systems may look to South Korea’s open-loop system as a model for improving their own tourism revenue collection and tourist satisfaction. By integrating technology with tourism services, South Korea is setting a high standard for smart tourism, positioning itself for future success.

A New Era for Tourism in South Korea

South Korea takes another important step toward future-proofing its tourism industry with its open-loop payment system. It doesn’t need any local transit card, as it allows international credit cards to work smoothly on its public transport network across the country. The travel experience will be so easy that the number of international tourists could further increase, thus raising tourism revenue for the country. This forward-thinking initiative not only enhances the tourist experience but also strengthens South Korea’s position in the global tourism market, setting it on a path of sustained growth over the coming years.