1. Market Research
  2. > Financial Services
  3. > Banking
  4. > Payments Market Trends
Payments Landscape in Japan: Opportunities and Risks to 2022

Payments Landscape in Japan: Opportunities and Risks to 2022

  • April 2019
  • 53 pages
  • ID: 5353551
  • Format: PDF
  • By GlobalData


Table of Contents

Search Inside

Payments Landscape in Japan: Opportunities and Risks to 2022

Japan’s payment landscape continues to be dominated by cash, which accounted for 76.2% of the overall payment volume in 2018. With government initiatives to promote electronic transactions and growing payment infrastructure, payment cards gained prominence during the review period (2014-18e). Card issuers and payment service providers are focusing on developing payment infrastructure via the expansion of the payment acceptance network. In addition, the market 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.

Debit card penetration is very high in Japan, with each individual holding over three debit cards in 2018, supported by the country’s strong banked population.However, debit card usage has been mostly confined to cash withdrawals at ATMs and are rarely used for payments.

Overall, ATM cash withdrawals accounted for 87.9% of total debit card transaction value in 2018. This is at least partly due to the limited awareness among consumers about the ability to use debit cards at the POS. Debit cards are also unpopular with merchants due to their longer settlement period.

Despite lower penetration compared to debit cards, credit cards are the preferred card type, accounting for 98% of the total payment transaction value in 2018.Credit cards are the most popular payment cards in Japan due to the associated reward programs, which are considered far more beneficial than those offered for debit and prepaid cards.

Another important factor driving this usage is the wider acceptance of these cards among merchants, with credit cards now accepted across all types of merchants.

Japan is one of the few countries with a crypto-friendly regulatory regime, and has officially recognized Bitcoin as a legal payment instrument since April 2017.The gradual rise in cryptocurrency acceptance at merchant locations can be seen as an upcoming trend in the country, with merchants increasingly opting for this method of payment due to benefits such as lower transaction fees, no chargebacks and cheaper payment acceptance from foreign tourists.

Large merchants such as Bic Camera and Yamada Denki in Japan are also now accepting payments via cryptocurrencies.

The report "Payments Landscape in Japan: Opportunities and Risks to 2022", 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, credit transfers, cards, and cheques during the review-period (2013-17e).

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 (2018e-22f).It also offers information on the country’s competitive landscape, including the market shares of issuers and schemes.

The report brings together research, modeling, and analysis expertise to allow banks and card issuers to identify segment dynamics and competitive advantages. The report also covers details of regulatory policy and recent changes in the regulatory structure.

The report provides -
- 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, credit transfers, cheques, and cards.It also, includes an overview of the country’s key alternative payment instruments
- E-commerce 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

Companies mentioned: Japan Post Bank, Sumitomo Mitsui Financial Group, Mizuho Financial Group, Mitsubishi UFJ Financial Group, Resona Holdings, Rakuten, Credit Saison, Aeon Credit Service, Credit Saison, Orico, Shinsei Bank, JCB, J-Debit, Visa, Mastercard, American Express

- To reduce dependence on cash, in April 2018 the Ministry of Economy, Trade and Industry (METI) released the Cashless Vision document, with recommendations to achieve at least a 40% cashless payment ratio by 2025.

In this regard, the Cashless Promotion Association was established in July 2018, which aims to promote electronics payments in the country through various initiatives including the standardization of QR-code payments, raising awareness of electronic payments among individuals and businesses, promotion of cashless payments at self service kiosks, and the development and maintenance of cashless statistics.
- Due to rising demand among consumers and businesses in Japan, a new extension to the current Zengin System was made available in 2018, to allow after-hours faster payment transaction capability. Instant transfers are now possible 24/7 at the majority of financial institutions across Japan. Over 70% of Japanese banks have enrolled to use the new payment system. Unlike the earlier system, which allowed same-day money transfers in a specified time on weekdays, the new system now enables bank transfers throughout the day, including Saturdays and Sundays.
- To benefit from the growing preference for alternative payments, banks and payment service providers are launching new payment solutions, particularly QR-based solutions. In October 2018, the mobile payment solution PayPay was launched by the India-based payments firm Paytm, in a joint venture with SoftBank and Yahoo Japan. This solution enables users to make QR-based payments at merchant stores using their mobile phone. Previously, in September 2018, Amazon also launched its payments solution Amazon Pay in Japan, which enables users to make online payments using the stored payment card details, as well as QR-based in-store payments. In March 2019, Mizuho Bank launched the payment solution J-Coin Pay in cooperation with 60 other financial institutions; this solution enables users to make fund transfers and payments directly from their bank accounts.

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.

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 150+ Million searchable statistics with tables, figures & datasets
  • More than 25,000 trusted sources
20% Off


  • Single User License — provides access to the report by one individual.
  • Department License — allows you to share the report with up to 5 users
  • Site License — allows the report to be shared amongst all employees in a defined country
  • Corporate License — allows for complete access, globally.
Veronica helps you find the right report:

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

We were impressed with the support that ReportLinker’s research specialists’ team provided. The report we purchased was useful and provided exactly what we want.

Category Manager at

ReportLinker gave access to reliable and useful data while avoiding dispersing resources and spending too much time on unnecessary research.

Executive Director at
PwC Advisory

The customer service was fast, responsive, and 100% professional in all my dealings (...) If we have more research needs, I'll certainly prioritize working with ReportLinker!

Scott Griffith

Vice President Marketing at
Maurice Sporting Goods

The research specialist provided prompt, helpful instructions for accessing ReportLinker's product. He also followed up to make sure everything went smoothly and to ensure an easy transition to the next stage of my research

Jessica P Huffman

Research Associate at
American Transportation Research Institute

Excellent customer service. Very responsive and fast.

Director, Corporate Strategy at

I reached out to ReportLinker for a detailed market study on the Air Treatment industry. The quality of the report, the research specialist’s willingness to solve my queries exceeded my expectations. I would definitely recommend ReportLinker for in-depth industry information.

Mariana Mendoza

Global Platform Senior Manager at
Whirlpool Corporation

Thanks! I like what you've provided and will certainly come back if I need to do further research works.

Bee Hin Png

CEO at
LDR Pte Ltd

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

  • How we can help
    • I am not sure if the report I am interested in will fulfill my needs. Can you help me?
    • Yes, of course. You can call us at +33(0) 4 37 65 17 03 or drop us an email at researchadvisor@reportlinker.com to let us know more about your requirements.
    • We buy reports often - can ReportLinker get me any benefits?
    • Yes. Set up a call with a Senior Research Advisor to learn more - researchadvisor@reportlinker.com or +33(0) 4 37 65 17 03.
    • I have had negative experiences with market research reports before. How can you avoid this from happening again?
    • We advise all clients to read the TOC and Summary and list your questions so that we can get more insight for you before you make any purchase decision. A research advisor will accompany you so that you can compare samples and reports from different sources, and choose the study that is right for you.

  • Report Delivery
    • How and when I will receive my Report?
    • Most reports are delivered right away in a pdf format, while others are accessed via a secure link and access codes. Do note that sometimes reports are sent within a 12 hour period, depending on the time zones. However, you can contact us to escalate this. Should you need a hard copy, you can check if this option is offered for the particular report, and pay the related fees.
  • Payment conditions
    • What payment methods do you accept?
      1. Credit card : VISA, American Express, Mastercard, or
      2. You can download an invoice to pay by wire transfer, check, or via a Purchase Order from your company, or
      3. You can pay via a Check made out in US Dollars, Euros, or British Pounds for the full amount made payable to ReportLinker
    • What are ReportLinker’s Payment Terms?
    • All payments must normally be submitted within 30 days. However, you can let us know if you need extended time.
    • Are Taxes and duties included?
    • All companies based in France must pay a 20% tax per report. The same applies to all individuals based in the EU. All EU companies must supply their VAT number when purchasing to avoid this charge.
    • I’m not satisfied. Can I be refunded?
    • No. Once your order has been processed and the publisher has received a notification to send you the report, we cannot issue any refund or cancel any order. As these are not ‘traditional’ products that can be returned, reports that are dispatched are considered to be ‘consumed’.
  • User license
    • The license that you should acquire depends on the number of persons that need to access the report. This can range from Single User (only one person will have the right to read or access the report), or Department License (up to 5 persons), to Site License (a group of persons based in the same company location), or Corporate License (the entire company personnel based worldwide). However, as publishers have different terms and conditions, we can look into this for you.
Purchase Reports From Reputable Market Research Publishers
Payments Landscape in Venezuela: Opportunities and Risks to 2022

Payments Landscape in Venezuela: Opportunities and Risks to 2022

  • $ 2750
  • May 2019

Payments Landscape in Venezuela: Opportunities and Risks to 2022SummaryVenezuela is currently undergoing an economic crisis, with the country on the brink of collapse.This is due to declining global oil ...

Payments Landscape in Slovenia: Opportunities and Risks to 2022

Payments Landscape in Slovenia: Opportunities and Risks to 2022

  • $ 2750
  • May 2019

Payments Landscape in Slovenia: Opportunities and Risks to 2022SummaryCash still remains the preferred method of payment in Slovenia, accounting for 52.9% of total payment transaction volume in 2018. Cash ...

Payments Landscape in Peru: Opportunities and Risks to 2023

Payments Landscape in Peru: Opportunities and Risks to 2023

  • $ 2750
  • May 2019

Payments Landscape in Peru: Opportunities and Risks to 2023SummaryThe use of cash for consumer payments remains highly prevalent among Peruvians.This is mainly due to the high unbanked population, inadequate ...


Reportlinker.com © Copyright 2019. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.

Make sure you don’t miss any news and follow us on