Financial Cards in Japan
Euromonitor International's Financial Cards in Japan report establishes the size and structure of the market for ATMs, credit cards, debit cards, store cards and smart cards. It looks at key players in the market (issuers and operators), number of cards in circulation, numbers transactions and value of transactions. It offers strategic analysis of sector forecasts and trends to watch.
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Tables: 100 | Publication date: Apr 2008
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- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Financial cards in circulation; Transactions
Executive summary
Reform of Money Lending Business Law
The reform of the Money Lending Business Law was passed by the Upper House in December 2006. This abolished the so-called "Grey Zone" in interest rates in consumer finance of between 20% and 29.2%. Following the passing of the law, consumer finance companies, including credit card companies and consumer credit companies, lowered their interest rates to an average of 18%. The loss from the reduced interest rates created significant turmoil in the industry in 2007.
Credit Card to Pay Utility Bills, Tax and Medical Expenses
Public utility bill payment through credit cards has been widely accepted by consumers since its introduction in 2006. Credit card payment has been extended to tax, other public funds and medical expenses, with credit card companies aiming to accelerate institutional acceptance. The rapid growth in transaction value has benefited not only credit companies but also consumers, since they enjoy the reward points accumulated when they spend.
Smart Cards and M-commerce Growing Steadily
The rapid increase in transportation and pre-paid smart cards means that many consumers are now accustomed to cashless payment. M-commerce is also growing rapidly. As of October 2007, there were six pre-paid transaction schemes and four post-paid transaction schemes using both plastic smart cards and m-commerce. Pre-paid schemes which are not linked to a smart card or a mobile phone user's credit card account require top-up via top-up machines, whereas the post-pay function requires the user to have a credit card account, which is debited when a payment is made using a post-paid card. The infrastructure for both types of scheme is well established, and there is considerable scope for greater usage by consumers.
Infrastructure for Small Transactions Improves
Transactions of small amounts – less than ¥3,000 – on financial cards are estimated to amount to ¥2,700 billion. The credit card companies, banks and mobile phone operators have developed the infrastructure, especially in encouraging use of prepaid smart cards in the expectation of rapid growth over the forecast period.
Significant Trend Towards Cashless Payment
In addition to cashless payment being promoted for public utility bills and other expense payments, along with growth in smart cards and m-commerce, there have also been increases in Internet shopping and a number of launches of pre-paid cards, such as Edy, Suica and Pasmo. All these developments drove growth in cashless payment in Japan in the latter part of the review period, and are expected to continue to do so during the forecast period.
Table of contents
FINANCIAL CARDS IN JAPAN : MARKET INSIGHT
EXECUTIVE SUMMARY
Reform of Money Lending Business Law
Credit Card to Pay Utility Bills, Tax and Medical Expenses
Smart Cards and M-commerce Growing Steadily
Infrastructure for Small Transactions Improves
Significant Trend Towards Cashless Payment
KEY TRENDS AND DEVELOPMENTS
More ATMs at Convenience Stores
"Points War" Heats Up
Manufacturers and Retailers Enter the Banking Business
Pre-paid Electronic Money Preferred in Japan
Small Transactions Drive Pre-paid Cards/E-wallet and M-commerce
Platinum Cards Losing Their Exclusivity?
Public Utility Payment Via Credit Card Grows Rapidly
Wealthy Class in Japan Growing
OPERATING ENVIRONMENT
Consumer Credit and Lending
Issuer Fraud
Acquirer Fraud
E-commerce
M-commerce
ATM and POS Terminals
Cash Withdrawal vs Card Purchase
Governmental Regulation and Legislation
MARKET INDICATORS
Table 1 Number of POS Terminals 2004-2007
Table 2 Number of ATMs 2004-2007
Table 3 Disposable Income 2002-2007
Table 4 Consumer Credit 2002-2007
Table 5 Value Lost to Fraud 2002-2007
MARKET DATA
Table 6 Financial Cards: Transactions 2002-2007
Table 7 Financial Cards: Value 2002-2007
Table 8 Financial Cards: Number of Cards in Circulation 2002-2007
Table 9 Financial Cards: Number of Accounts 2002-2007
Table 10 Domestic versus Foreign Spend 2007
Table 11 Card Expenditure by Sector 2007
Table 12 Card Expenditure by Location 2007
Table 13 Financial Cards: Number of Internet Transactions 2002-2007
Table 14 Financial Cards: Internet Transaction Value 2002-2007
Table 15 Financial Cards: Number of Cards by Issuer 2002-2006
Table 16 Financial Cards: Number of Cards by Operator 2002-2006
Table 17 Financial Cards: Point of Sale Transactions by Acquirer 2002-2006
Table 18 Financial Cards Forecast: Transactions 2007-2012
Table 19 Financial Cards Forecast: Value 2007-2012
Table 20 Financial Cards Forecast: Number of Cards in Circulation 2007-2012
Table 21 Financial Cards: Forecast Number of Accounts 2007-2012
Table 22 Financial Cards Forecast: Number of Internet Transactions 2007-2012
Table 23 Financial Cards Forecast: Internet Transaction Value 2007-2012
DEFINITIONS
Cards by Type
Cardholder Behaviour
Card Expenditure by Sector
Value Lost to Card Fraud
Consumer Credit
Market Background
Sources
Summary 1 Research Sources
LOCAL COMPANY PROFILES - JAPAN
AEON CREDIT SERVICE CO LTD - FINANCIAL CARDS - JAPAN
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Aeon Credit Service Co Ltd: Key Facts
Summary 3 Aeon Credit Service Co Ltd: Operational Indicators 2004-2006
COMPANY BACKGROUND
COMPETITIVE POSITIONING
CREDIT SAISON CO LTD - FINANCIAL CARDS - JAPAN
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Credit Saison Co Ltd: Key Facts
Summary 5 Credit Saison Co Ltd: Operational Indicators 2006-2007
COMPANY BACKGROUND
COMPETITIVE POSITIONING
JCB CO LTD - FINANCIAL CARDS - JAPAN
STRATEGIC DIRECTION
KEY FACTS
Summary 6 JCB Co Ltd: Key Facts
Summary 7 JCB Co Ltd: Operational Indicators 2004-2005
COMPANY BACKGROUND
COMPETITIVE POSITIONING
SUMITOMO MITSUI CARD CO LTD - FINANCIAL CARDS - JAPAN
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Sumitomo Mitsui Card Co Ltd: Key Facts
Summary 9 Sumitomo Mitsui Card Co Ltd: Operational Indicators 2004-2006
COMPANY BACKGROUND
COMPETITIVE POSITIONING
UFJ NICOS CO LTD - FINANCIAL CARDS - JAPAN
STRATEGIC DIRECTION
KEY FACTS
Summary 10 UFJ Nicos Co Ltd: Key Facts
Summary 11 UFJ Nicos Co Ltd: Operational Indicators 2005-2007
COMPANY BACKGROUND
COMPETITIVE POSITIONING
SMART CARDS IN JAPAN
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 24 Smart Cards Sector Performance: 2002-2007
Table 25 Smart Cards Sector Performance: % Growth 2002-2007
Table 26 Smart Cards: Memory vs Microprocessor 2004-2007
Table 27 Smart Cards: Contact vs Contactless 2004-2007
Table 28 Smart Cards: Forecast Sector Performance: 2007-2012
Table 29 Smart Cards: Forecast Sector Performance: % Growth 2007-2012
ATM TRANSACTIONS IN JAPAN
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 30 ATM Cards Sector Performance: 2002-2007
Table 31 ATM Cards Sector Performance: % Growth 2002-2007
Table 32 ATM Cards: Forecast Sector Performance: 2007-2012
Table 33 ATM Cards: Forecast Sector Performance: % Growth 2007-2012
DEBIT TRANSACTIONS IN JAPAN
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 34 Debit Cards Sector Performance: 2002-2007
Table 35 Debit Cards Sector Performance: % Growth 2002-2007
Table 36 Debit Cards: Number of Cards by Issuer 2002-2006
Table 37 Debit Cards: Number of Cards by Operator 2002-2006
Table 38 Debit Cards Transactions by Acquirer 2002-2006
Table 39 Debit Cards Transaction Value by Operator 2002-2006
Table 40 Debit Cards: Forecast Sector Performance: 2007-2012
Table 41 Debit Cards: Forecast Sector Performance: % Growth 2007-2012
CREDIT CARD TRANSACTIONS IN JAPAN
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 42 Credit Cards Sector Performance: 2002-2007
Table 43 Credit Cards Sector Performance: % Growth 2002-2007
Table 44 Personal Credit Cards Sector Performance: 2002-2007
Table 45 Personal Credit Cards Sector Performance: % Growth 2002-2007
Table 46 Corporate Credit Cards: Sector Performance: 2002-2007
Table 47 Corporate Credit Cards: Sector Performance: % Growth 2002-2007
Table 48 Credit Cards: Number of Cards by Issuer 2002-2006
Table 49 Credit Cards: Number of Cards by Operator 2002-2006
Table 50 Credit Cards Transactions by Acquirer 2002-2006
Table 51 Personal Credit Cards Transactions by Acquirer 2002-2006
Table 52 Corporate Credit Cards Transactions by Acquirer 2002-2006
Table 53 Credit Cards: Forecast Sector Performance: 2007-2012
Table 54 Credit Cards: Forecast Sector Performance: % Growth 2007-2012
Table 55 Personal Credit Cards: Forecast Sector Performance: 2007-2012
Table 56 Personal Credit Cards: Forecast Sector Performance: % Growth 2007-2012
Table 57 Corporate Credit Cards: Forecast Sector Performance: 2007-2012
Table 58 Corporate Credit Cards: Forecast Sector Performance: % Growth 2007-2012
CHARGE CARD TRANSACTIONS IN JAPAN
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 59 Charge Cards Sector Performance: 2002-2007
Table 60 Charge Cards Sector Performance: % Growth 2002-2007
Table 61 Personal Charge Cards Sector Performance: 2002-2007
Table 62 Personal Charge Cards Sector Performance: % Growth 2002-2007
Table 63 Corporate Charge Cards: Sector Performance: 2002-2007
Table 64 Corporate Charge Cards: Sector Performance: % Growth 2002-2007
Table 65 Charge Cards: Number of Cards by Issuer 2002-2006
Table 66 Charge Cards: Number of Cards by Operator 2002-2006
Table 67 Charge Cards Transactions by Acquirer 2002-2006
Table 68 Personal Charge Cards Transactions by Acquirer 2002-2006
Table 69 Corporate Charge Cards Transactions by Acquirer 2002-2006
Table 70 Charge Cards: Forecast Sector Performance: 2007-2012
Table 71 Charge Cards: Forecast Sector Performance: % Growth 2007-2012
Table 72 Personal Charge Cards: Forecast Sector Performance: 2007-2012
Table 73 Personal Charge Cards: Forecast Sector Performance: % Growth 2007-2012
Table 74 Corporate Charge Cards: Forecast Sector Performance: 2007-2012
Table 75 Corporate Charge Cards: Forecast Sector Performance: % Growth 2007-2012
PRE-PAID CARD TRANSACTIONS IN JAPAN
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 76 Pre-paid Cards Sector Performance: 2002-2007
Table 77 Pre-paid Cards Sector Performance: % Growth 2002-2007
Table 78 Pre-paid Cards: Number of Cards by Issuer 2002-2006
Table 79 Pre-paid Cards: Number of Cards by Operator 2002-2006
Table 80 Pre-paid Cards Transactions by Acquirer 2002-2006
Table 81 Pre-paid Cards by Type 2004-2007
Table 82 Pre-paid Cards: Forecast Sector Performance: 2007-2012
Table 83 Pre-paid Cards: Forecast Sector Performance: % Growth 2007-2012
STORE CARD TRANSACTIONS IN JAPAN
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 84 Store Cards Sector Performance: 2002-2007
Table 85 Store Cards Sector Performance: % Growth 2002-2007
Table 86 Store Cards: Number of Cards by Issuer 2002-2006
Table 87 Store Cards Transactions by Acquirer 2002-2006
Table 88 Store Cards: Forecast Sector Performance: 2007-2012
Table 89 Store Cards: Forecast Sector Performance: % Growth 2007-2012