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Financial Cards and Payments in
Japan

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Executive Summary

Nov 2019
Period of transformation

The Japanese financial cards and payment landscape is undergoing a potentially radical transformation, supported by government efforts to promote a cashless society. Cash remained the dominant method of payment in Japan in 2019, but the expansion of e-commerce and the increasingly embedded role of smartphones in consumers’ daily lives are boosting consumers’ familiarity with financial cards and e-payment.

Expanding cashless payment to small merchants

Expanding cashless payment to small retailers is a key feature of the development of financial cards and payment in Japan. Government plans to promote cashless payment included offering 5% of purchase value to consumers who make cashless payments at small and medium-sized retailers for a nine month period from October 2019.

Security concerns remain an important issue

While Japan has established strong technological foundations for the potential development of payment methods such as mobile wallets, these payment options have struggled to gain in popularity in the country. Japanese consumers remain emotionally attached to cash and concerned about the security of cashless transactions.

Loyalty programmes and reward schemes prove an important competitive tool

Loyalty programmes and reward schemes are proving to be an important tool as companies seek to differentiate their offers in an increasingly competitive environment. Indeed, loyalty programmes have been a key factor in the relative popularity of credit cards compared with debit cards in the Japanese market.

Numerous growth drivers set to maintain expansion despite obstacles

While consumer conservatism and concerns about security will continue to act as obstacles to the development of financial cards during the forecast period, credit cards, debit cards and pre-paid cards are all expected to see continued growth. The expansion of cashless payment will be supported by government efforts to provide a favourable regulatory environment and incentives to promote the use of cashless payment methods.

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Financial Cards and Payments in Japan

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Overview

Discover the latest market trends and uncover sources of future market growth for the Financial Cards and Payments industry in Japan with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Financial Cards and Payments industry in Japan, our research will save you time and money while empowering you to make informed, profitable decisions.

The Financial Cards and Payments in Japan market research report includes:

  • Analysis of key supply-side and demand trends  
  • Historic volumes and values, company and brand market shares
  • Five year forecasts of market trends and market growth
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • What is the market size of Financial Cards and Payments in Japan?
  • What are the major operators and issuers in Japan?
  • How will regulation impact the market?  
  • What is the current state of emerging payment technologies such as mobile commerce?

Why buy this report?

  • Gain competitive intelligence about market leaders
  • Track key industry trends, opportunities and threats
  • Inform your marketing, brand, strategy and market development, sales and supply functions

Euromonitor’s industry reports, including Financial Cards and Payments in Japan, originate from our database within our Consumer Finance market share and market size database, Passport, a platform which analyses Consumer Finance in 46 countries and globally.

Financial Cards and Payments in Japan - Industry Overview

EXECUTIVE SUMMARY

Period of transformation
Expanding cashless payment to small merchants
Security concerns remain an important issue
Loyalty programmes and reward schemes prove an important competitive tool
Numerous growth drivers set to maintain expansion despite obstacles

MARKET INDICATORS

Table 1 Number of POS Terminals: Units 2014-2019
Table 2 Number of ATMs: Units 2014-2019
Table 3 Value Lost to Fraud 2014-2019
Table 4 Card Expenditure by Location 2019
Table 5 Financial Cards in Circulation by Type: % Number of Cards 2014-2019
Table 6 Domestic versus Foreign Spend 2019

MARKET DATA

Table 7 Financial Cards by Category: Number of Cards in Circulation 2014-2019
Table 8 Financial Cards by Category: Number of Accounts 2014-2019
Table 9 Financial Cards Transactions by Category: Value 2014-2019
Table 10 Financial Cards by Category: Number of Transactions 2014-2019
Table 11 Consumer Payments by Category: Value 2014-2019
Table 12 Consumer Payments by Category: Number of Transactions 2014-2019
Table 13 M-Commerce by Category: Value 2014-2019
Table 14 M-Commerce by Category: % Value Growth 2014-2019
Table 15 Financial Cards: Number of Cards by Issuer 2014-2018
Table 16 Financial Cards: Number of Cards by Operator 2014-2018
Table 17 Financial Cards: Card Payment Transactions Value by Operator 2014-2018
Table 18 Financial Cards: Card Payment Transactions Value by Issuer 2014-2018
Table 19 Forecast Financial Cards by Category: Number of Cards in Circulation 2019-2024
Table 20 Forecast Financial Cards by Category: Number of Accounts 2019-2024
Table 21 Forecast Financial Cards Transactions by Category: Value 2019-2024
Table 22 Forecast Financial Cards by Category: Number of Transactions 2019-2024
Table 23 Forecast Consumer Payments by Category: Value 2019-2024
Table 24 Forecast Consumer Payments by Category: Number of Transactions 2019-2024
Table 25 Forecast M-Commerce by Category: Value 2019-2024
Table 26 Forecast M-Commerce by Category: % Value Growth 2019-2024

SOURCES

Summary 1 Research Sources

Charge Cards in Japan - Category analysis

PROSPECTS

Credit Cards in Japan - Category analysis

HEADLINES

PROSPECTS

Loyalty programmes support popularity of credit cards
Growing range of usage opportunities
Government working to encourage credit card payments in smaller retailers

COMPETITIVE LANDSCAPE

Growing opportunities for contactless payment
Strong loyalty programmes are a key competitive advantage
Growing focus on collaboration

CATEGORY DATA

Table 27 Credit Cards: Number of Cards in Circulation 2014-2019
Table 28 Credit Cards Transactions 2014-2019
Table 29 Credit Cards in Circulation: % Growth 2014-2019
Table 30 Credit Cards Transactions: % Growth 2014-2019
Table 31 Commercial Credit Cards: Number of Cards in Circulation 2014-2019
Table 32 Commercial Credit Cards Transactions 2014-2019
Table 33 Commercial Credit Cards in Circulation: % Growth 2014-2019
Table 34 Commercial Credit Cards Transactions: % Growth 2014-2019
Table 35 Personal Credit Cards: Number of Cards in Circulation 2014-2019
Table 36 Personal Credit Cards Transactions 2014-2019
Table 37 Personal Credit Cards in Circulation: % Growth 2014-2019
Table 38 Personal Credit Cards Transactions: % Growth 2014-2019
Table 39 Credit Cards: Number of Cards by Issuer 2014-2018
Table 40 Credit Cards: Number of Cards by Operator 2014-2018
Table 41 Credit Cards Payment Transaction Value by Issuer 2014-2018
Table 42 Credit Cards Payment Transaction Value by Operator 2014-2018
Table 43 Commercial Credit Cards: Number of Cards by Issuer 2014-2018
Table 44 Commercial Credit Cards: Number of Cards by Operator 2014-2018
Table 45 Commercial Credit Cards Payment Transaction Value by Issuer 2014-2018
Table 46 Commercial Credit Cards Payment Transaction Value by Operator 2014-2018
Table 47 Personal Credit Cards: Number of Cards by Issuer 2014-2018
Table 48 Personal Credit Cards: Number of Cards by Operator 2014-2018
Table 49 Personal Credit Cards Payment Transaction Value by Issuer 2014-2018
Table 50 Personal Credit Cards Payment Transaction Value by Operator 2014-2018
Table 51 Forecast Credit Cards: Number of Cards in Circulation 2019-2024
Table 52 Forecast Credit Cards Transactions 2019-2024
Table 53 Forecast Credit Cards in Circulation: % Growth 2019-2024
Table 54 Forecast Credit Cards Transactions: % Growth 2019-2024
Table 55 Forecast Commercial Credit Cards: Number of Cards in Circulation 2019-2024
Table 56 Forecast Commercial Credit Cards Transactions 2019-2024
Table 57 Forecast Commercial Credit Cards in Circulation: % Growth 2019-2024
Table 58 Forecast Commercial Credit Cards Transactions: % Growth 2019-2024
Table 59 Forecast Personal Credit Cards: Number of Cards in Circulation 2019-2024
Table 60 Forecast Personal Credit Cards Transactions 2019-2024
Table 61 Forecast Personal Credit Cards in Circulation: % Growth 2019-2024
Table 62 Forecast Personal Credit Cards Transactions: % Growth 2019-2024

Debit Cards in Japan - Category analysis

HEADLINES

PROSPECTS

Limited acceptance an obstacle to development
Diversification of offer erodes J-Debit’s share
Cashless Vision should provide a boost for debit cards

COMPETITIVE LANDSCAPE

J-Debit working to reinforce its position
Visa promoting contactless debit card
JCB focuses on mobile payment potential

CATEGORY DATA

Table 63 Debit Cards: Number of Cards in Circulation 2014-2019
Table 64 Debit Cards Transactions 2014-2019
Table 65 Debit Cards in Circulation: % Growth 2014-2019
Table 66 Debit Cards Transactions: % Growth 2014-2019
Table 67 Debit Cards: Number of Cards by Issuer 2014-2018
Table 68 Debit Cards: Number of Cards by Operator 2014-2018
Table 69 Debit Cards Payment Transaction Value by Issuer 2014-2018
Table 70 Debit Cards Payment Transaction Value by Operator 2014-2018
Table 71 Forecast Debit Cards: Number of Cards in Circulation 2019-2024
Table 72 Forecast Debit Cards Transactions 2019-2024
Table 73 Forecast Debit Cards in Circulation: % Growth 2019-2024
Table 74 Forecast Debit Cards Transactions: % Growth 2019-2024

Pre-Paid Cards in Japan - Category analysis

HEADLINES

PROSPECTS

Pre-paid cards have relatively broad target base
Consumers appreciate convenience
Integration across transportation systems boosts closed loop pre-paid cards

COMPETITIVE LANDSCAPE

Diversification of acceptance boosts transportation cards
Suica working on mobile capability
Rakuten brings payment operations under one subsidiary

CATEGORY DATA

Table 75 Pre-paid Cards: Number of Cards in Circulation 2014-2019
Table 76 Pre-paid Cards Transactions 2014-2019
Table 77 Pre-paid Cards in Circulation: % Growth 2014-2019
Table 78 Pre-paid Cards Transactions: % Growth 2014-2019
Table 79 Closed Loop Pre-paid Cards Transactions 2014-2019
Table 80 Closed Loop Pre-paid Cards Transactions: % Growth 2014-2019
Table 81 Open Loop Pre-paid Cards Transactions 2014-2019
Table 82 Open Loop Pre-paid Cards Transactions: % Growth 2014-2019
Table 83 Pre-paid Cards: Number of Cards by Issuer 2014-2018
Table 84 Pre-paid Cards: Number of Cards by Operator 2014-2018
Table 85 Pre-paid Cards Transaction Value by Issuer 2014-2018
Table 86 Pre-paid Cards Transaction Value by Operator 2014-2018
Table 87 Closed Loop Pre-paid Cards: Number of Cards by Issuer 2014-2018
Table 88 Closed Loop Pre-paid Cards: Number of Cards by Operator 2014-2018
Table 89 Closed Loop Pre-paid Cards Transaction Value by Issuer 2014-2018
Table 90 Closed Loop Pre-paid Cards Transaction Value by Operator 2014-2018
Table 91 Open Loop Pre-paid Cards: Number of Cards by Issuer 2014-2018
Table 92 Open Loop Pre-paid Cards: Number of Cards by Operator 2014-2018
Table 93 Open Loop Pre-paid Cards Transaction Value by Issuer 2014-2018
Table 94 Open Loop Pre-paid Cards Transaction Value by Operator 2014-2018
Table 95 Forecast Pre-paid Cards: Number of Cards in Circulation 2019-2024
Table 96 Forecast Pre-paid Cards Transactions 2019-2024
Table 97 Forecast Pre-paid Cards in Circulation: % Growth 2019-2024
Table 98 Forecast Pre-paid Cards Transactions: % Growth 2019-2024
Table 99 Forecast Closed Loop Pre-paid Cards Transactions 2019-2024
Table 100 Forecast Closed Loop Pre-paid Cards Transactions: % Growth 2019-2024
Table 101 Forecast Open Loop Pre-paid Cards Transactions 2019-2024
Table 102 Forecast Open Loop Pre-paid Cards Transactions: % Growth 2019-2024

Store Cards in Japan - Category analysis

HEADLINES

PROSPECTS

Store cards sees contraction in terms of card numbers and transaction value
Issuers shift to co-branded credit cards with attractive loyalty programmes
Persistent presence despite ongoing decline

COMPETITIVE LANDSCAPE

No new store cards being issued
Department stores’ travails negatively impact store cards
Takashimaya’s lead founded on considerable cardholder base

CATEGORY DATA

Table 103 Store Cards: Number of Cards in Circulation 2014-2019
Table 104 Store Cards Transactions 2014-2019
Table 105 Store Cards in Circulation: % Growth 2014-2019
Table 106 Store Cards Transactions: % Growth 2014-2019
Table 107 Store Cards: Number of Cards by Issuer 2014-2018
Table 108 Store Cards: Payment Transaction Value by Issuer 2014-2018
Table 109 Forecast Store Cards: Number of Cards in Circulation 2019-2024
Table 110 Forecast Store Cards Transactions 2019-2024
Table 111 Forecast Store Cards in Circulation: % Growth 2019-2024
Table 112 Forecast Store Cards Transactions: % Growth 2019-2024