Credit card payments market in Japan to surpass $1B by 2024

Japan is one of the few countries globally which is able to control the COVID-19 pandemic

Japan

Credit card payments market in Japan to surpass $1B by 2024. Source: pixabay.com

According to GlobalData, the credit card payments market in Japan is set to register a compound annual growth rate of 7.6% to reach 1,026.5 billion in 2024.

The report has found that the value of credit card payments in Japan is estimated to grow by 9.2% in 2021 with easing of government restrictions, opening businesses and rise in consumer spending.

Japan has a highly evolved credit card market with each individual holding more than two cards. Pricing benefits and wider merchant acceptance are driving credit card usage in the country. In addition, most debit cards do not support e-commerce payments, which is also helping credit cards growth
Nikhil Reddy, Payments Senior Analyst at GlobalData

The government’s push for e-payments and rising adoption of contactless payments will further push credit card usage in the country. To stimulate consumption following the COVID-19 pandemic, Japan launched ‘My Na Point’ reward program in September 2020, which ended in March 2021. It offered consumers reward points up to $48.4 on purchases made using digital payments such as debit card, credit card and prepaid card.

GloablData expects the upcoming Olympics scheduled for August 2021 is also expected to provide an impetus to the payments industry. All major banks and payment participants are making their payment infrastructure compatible with foreign-issued cards and installing POS terminals at locations with high footfall, such as tourist attractions and supermarkets.

We’ve reported that Deutsche Bank and Fiserv formed joint venture in Germany.

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