North Korean authorities have conducted a nationwide survey on electronic payment usage in the first quarter of this year. The results show that while demand for electronic payments has increased in the capital region, cash transactions remain deeply entrenched in provincial areas.
According to a Daily NK source recently, “The Central Committee’s Economic Department instructed the Central Bank through the Cabinet in early April to conduct a nationwide survey on electronic payments and foreign currency transactions. The survey was completed on Apr. 11, and currently, banks in all 13 provinces (and directly-governed cities) are analyzing the results based on reports compiling first-quarter data.”
The survey aimed to examine changes in payment methods among the people and included categories such as payment types, electronic payment usage rates, age-based preferences, and trends in foreign currency usage.
According to the findings, urban areas in the capital region, including Pyongyang and Nampo, saw approximately a 10 percentage point increase in the use of mobile phone payment apps based on barcodes and QR codes compared to the previous year. In fact, some stores in Pyongyang now display notices stating, “You only need your mobile phone, no cash required,” indicating that electronic payments are becoming relatively well-established.
The survey found that electronic payments are most active in Pyongyang, Rason, Sinuiju, and Kaesong, with about 23% of people in these areas responding that “electronic payments are more convenient.” The source reported that “mobile phone payments” are rapidly becoming commonplace, especially among people in their 20s and 30s.
Meanwhile, the electronic payment system barely functions in state-owned stores in remote areas of Gangwon, Jagang, and North and South Hamgyong provinces. Technical and equipment shortages, lack of electricity, and long-established habits of “holding cash” were cited as the main reasons for this disparity.
Foreign currency usage patterns varied by region, with the use of Chinese yuan increasing by approximately 12 percentage points year-on-year in Nampo, Sariwon, and Rason. The source interpreted this as “the effect of resumed trade with China and increased civilian logistics.”
In Pyongyang, however, the U.S. dollar remains the most commonly used foreign currency, followed by the euro, yuan, and yen. The report specifically noted that the use of the Japanese yen slightly increased compared to the Chinese yuan in the beginning of this year.
Based on these findings, the Central Committee’s Economic Department has outlined second-half tasks including unified management of the electronic payment system, analysis of foreign currency usage, and expansion of consumer spending pattern analysis functions. They also plan to conduct a second survey in September.
The source said that a bank employee from a provincial area expressed frustration, saying: “The reality is that people in the provinces aren’t prepared for this change, yet we’re expected to match Pyongyang’s standards, which is frankly challenging. There’s little incentive for residents to switch to card-based electronic payments. Rural and mountainous regions will naturally require additional time to adapt—it’s unrealistic to expect significant changes by the September deadline.”
Meanwhile, it has been reported that some banks in Ryanggang and North Pyongan provinces deliberately omitted or reduced figures in this survey, resulting in warnings issued to relevant officials by the Central Bank.
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