Internet giant Naver's payment platform Naver Pay said Sunday its overseas QR payment service is experiencing explosive growth as more Korean travelers opt for digital wallets abroad.

The transaction volume for its overseas QR payment service surged by 70.7 percent in the first quarter compared to the previous quarter, the platform operator said.

The spike is largely driven by a sharp increase in Korean tourists using the service in Japan, China and Thailand, the operator added.

The number of new overseas users rose by 67 percent on-quarter, signaling a shift in consumer behavior as contactless payments become a norm among young travelers.

Naver Pay’s integration with PayPay, Japan’s leading QR payment network, expanded the number of affiliated merchants by nearly 3 million, significantly boosting usage.

Popular retail chains like Don Quijote and Sugi Pharmacy saw sustained increases in Naver Pay transactions.

In China, Naver Pay remains the only Korean mobile wallet partnered with all three major local platforms — WeChat Pay, UnionPay and Alipay Plus — enabling seamless usage across most of the mainland.

In May alone, transaction volume in China rose 40 percent compared to April.

Notably, the number of users in their 20s more than doubled, with high activity concentrated in youth-frequented destinations such as Shanghai Disneyland, Darunfa Mart and Sunrise Duty-Free.

Thailand also showed a strong performance, with QR payment volumes increasing 26 percent in May from April, especially in major tourist hotspots.

Currently, Naver Pay supports QR payment in 65 countries and regions, the most extensive overseas coverage among all Korean digital payment platforms.

By Jie Ye-eun (yeeun@heraldcorp.com)