South Koreans are turning to cash-giving apps to offset the impact of rising living costs, according to a recent report. Toss, a financial services app from South Korean start-up Viva Republic, offers users the chance to earn money by completing tasks such as walking 10,000 steps, subscribing to social media or simply tapping the screen when other users are nearby. The trend of businesses winning users through loyalty apps that offer cash and points has become increasingly popular, particularly in an economy hit by high youth unemployment and inflation.
As many as three in four adults in South Korea earn cash through such applications, according to a survey by job portal Incruit. The viral campaign of Toss has seen the app become a frontrunner in this trend. Users have been able to make pocket money, such as 150 won ($0.11), with the aim of buying coffee or paying for something with the app. Retiree Han Sun-jae, 77, has made 50,000 won ($37.91) through the app. He commented that his daughter told him many people were gathering outside the Seoul Museum of Art where office workers gathered at lunchtime based on rumour and grapevine chitchat.
The trend has highlighted the fact that South Koreans are willing to go the extra mile to help overcome an increasingly dire economic situation. Consumer inflation rates hit 5.1% in 2022, the highest since 1998, with food and transport prices rising 5.9% and 9.7% respectively. However, some experts caution that exchanging data for the opportunity to earn pennies could involve sensitive personal information being shared with third parties. Lee Eun-hee, a consumer studies professor at Inha University, warned that people need to consider both sides of the coin, as it would be wise to weigh up the risks of sharing their personal data for financial gain.
Despite this, the number of Toss users has increased since its launch in January, with 4.4 million users already having used the app’s cash-giving feature. Viva Republica has reported that the number of times people open the app on handsets has increased by 30%. The trend of cash-giving apps highlights how South Koreans are finding innovative ways to combat financial difficulties, particularly in light of high youth unemployment and surging inflation.