Japan Cards and Payments – Opportunities and Risks to 2025
Japan cards and payments market size was valued at $726.3 billion in 2021. The market is expected to grow at a CAGR of more than 6% during the period 2021-2025.
The Japan cards and payments market research report provides detailed analysis of market trends in the Japanese cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including cash, cards, credit transfers and cheques during the review-period. The report also analyzes various payment card markets operating in the industry and provides detailed information on the number of cards in circulation, transaction values and volumes during the review-period and over the forecast-period. It also offers information on the country’s competitive landscape, including market shares of issuers and schemes.
Japan Cards and Payments Market Outlook
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Market Dynamics in the Japan Cards and Payments Market
- Japan’s payment landscape is dominated by cash, which accounted for a significant share of overall payment volume in 2021e.
- With government initiatives to promote electronic transactions and improved payment infrastructure, payment cards grew in prominence during 2017–21e.
- Card issuers and payment services providers are focusing on developing payment infrastructure via the expansion of the payment acceptance network.
- The cards and payments market in Japan is witnessing new developments encompassing payment card security and convenient payment solutions, with card issuers and technology companies experimenting with advanced technologies such as blockchain and biometrics.
Key Segments in the Japan Cards and Payments Market
The key segments in the Japan cards and payments market are card-based payment, e-commerce payments, in-store payments, buy now pay later, mobile payments, P2P payments, bill payments, and alternative payments.
Card-based Payment in the Japan Cards and Payments Market
Debit card use for payments remains low, in Japan mainly due to the popularity of cash. However, since the outbreak of COVID-19, Japanese consumers are gradually shifting towards non-cash payment methods. The rising preference for contactless payments and growth in ecommerce are expected to further boost electronic payments.
E-commerce Payments in the Japan Cards and Payments Market
The ecommerce market in Japan is well developed, supported by high internet penetration, robust online payment infrastructure, and the availability of various online payment solutions. The COVID-19 pandemic has further accelerated this trend as increasing numbers of consumers are opting for digital platforms.
In-store Payments in the Japan Cards and Payments Market
Credit cards are the preferred payment tool for in-store payments in Japan, accounting for over half of total in-store transaction value. This is mostly due to the reward programs, cashback, and discounts offered by card issuers and their partner retailers. Another important factor driving this usage is wider acceptance of these cards among merchants, with credit cards now accepted across all types of merchants.
Buy Now Pay Later Payments in the Japan Cards and Payments Market
Buy now pay later services are gradually gaining prominence in Japan. Payment solutions providers such as NP Atobarai, Paidy, Pace, and Splitit offer buy now pay later facilities. NP Atobarai allows its users to make payments for purchases within 14 days of invoice generation.
Mobile Payments in the Japan Cards and Payments Market
Consumers in Japan use their mobile wallets mostly for food and drink purchases, followed by clothing and footwear. To encourage usage – and entice consumers away from traditional payment tools – mobile wallet solutions offer various rewards and benefits.
P2P Payments in the Japan Cards and Payments Market
Cash is the favored tool for domestic P2P transfers, which is unsurprising given the high preference for cash among Japanese consumers. Gifting cash for festivals and occasions is a common practice in Japan. Online bank transfers and mobile banking apps are also favored for both domestic and international P2P transfers.
Bill Payments in the Japan Cards and Payments Market
Credit cards are widely used for utility bill payments in Japan, with the majority of consumers favoring this method, followed by direct debits and cash. A significant proportion of Japanese consumers prefer to pay utility bills in person at a bank, post office, or convenience stores such as 7-Eleven, Lawson, or FamilyMart. Consumers can make such payments using credit cards or cash.
Alternative Payments in the Japan Cards and Payments Market
J-Coin Pay, PayPay, Rakuten Pay, LINE Pay are some of the alternative payments in the Japanese cards and payments market.
Key Payment Instruments in the Japan Cards and Payments Market
The key payment instruments in the cards and payments market in Japan are cash, cards, credit transfers and cheques. Cash is the largest payment instrument in the cards and payments market in Japan in terms of volume.
Japan Cards and Payments Market, by Payment Instrument
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Market report scope
| Market size | $726.3 billion |
| CAGR % (2021-2025) | >6% |
| Key segments | Card-Based Payment, E-Commerce Payments, In-Store Payments, Buy Now Pay Later, Mobile Payments, P2P Payments, Bill Payments, Alternative Payments |
| Key payment instruments | Cash, Cards, Credit Transfers, and Cheqeus |
Scope
The report provides top-level market analysis, information and insights into the Japanese cards and payments industry, including –
- Current and forecast values for each market in the Japanese cards and payments industry, including debit and credit cards.
- Detailed insights into payment instruments including cash, cards, credit transfer and cheques. It also, includes an overview of the country’s key alternative payment instruments.
- Ecommerce market analysis.
- Analysis of various market drivers and regulations governing the Japanese cards and payments industry.
- Detailed analysis of strategies adopted by banks and other institutions to market debit and credit cards.
- Comprehensive analysis of consumer attitudes and buying preferences for cards.
- The competitive landscape of the Japanese cards and payments industry.
Reasons to Buy
- Make strategic business decisions, using top-level historic and forecast market data, related to the Japanese cards and payments industry and each market within it.
- Understand the key market trends and growth opportunities in the Japanese cards and payments industry.
- Assess the competitive dynamics in the Japanese cards and payments industry.
- Gain insights into marketing strategies used for various card types in Japan.
- Gain insights into key regulations governing the Japanese cards and payments industry.
Key Players
Table of Contents
Frequently Asked Questions
The Japan cards and payments market size was valued at $726.3 billion in the year 2021.
The Japan cards and payments market is projected to grow at a CAGR of more than 6% during the period 2021-2025.
Card-based payments, e-commerce payments, in-store payments, buy now pay later, mobile payments, P2P payments, bill payments, alternative payments are the key segments in the Japanese cards and payments market.
Cash, cards, credit transfers and cheques are the key payment instruments in the Japanese cards and payments market.
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