North Korea’s smartphone payments reveal convenience and control

Smartphone payments are gaining popularity in North Korea, with cash transactions gradually being replaced by digital payments in major cities like Pyongyang, Pyongsong, Sinuiju, and Nampo, especially among younger citizens. Various electronic payment services, such as Samhung e-Wallet, Jonsong, Narae, Apnal, Saebyol, Huinnun, and Manmulsang, are operating within the country.

The number of mobile phone subscriptions and mobile broadband subscriptions has steadily increased, with North Korea recording around 6.35 million mobile phone subscriptions and 5.79 million mobile broadband subscriptions in 2024, according to the International Telecommunication Union (ITU). The range of electronic payment uses is expanding, including QR code payments at shops and street stalls, taxi fares, bus fares, restaurant reservations, electricity bills, grain purchase coupons, and sports lottery tickets.

Witnesses on April 2025 noted QR codes for various e-wallet services at department stores, street vendor stalls, and vegetable stands in Pyongyang. The North Korean government has actively promoted this shift by enacting and revising the Electronic Payment Act in 2021 and 2023, aiming to reduce cash in circulation and increase cashless transactions to maintain a smooth flow of currency.

The authorities are pursuing a cashless economy for several reasons, including drawing cash holdings, particularly foreign currency, into the formal financial system, gaining a clearer view of market activity, improving the efficiency of internal economic management, and aligning with its information control system. Despite the convenience, some North Koreans are hesitant to store large amounts in e-wallets due to concerns about state surveillance of their transaction records.

The ultimate goal should be to use electronic payment technology for convenience while ensuring privacy protections for users.