How card payments value in Japan changes: statistics and forecast

The fact that Japan is currently moving towards the easing of restrictions will support card payments growth

card payments value

How card payments value in Japan changes: statistics and forecast. Source: unsplash.com

GlobalData forecasts that the value of card payments in Japan will grow by 2.1% in 2020. The value is expected to reach $839.4 billion by 2023, at a compound annual growth rate of 6.0% between 2020 and 2023.

Japan has been traditionally a cash-based country, with cash accounting for 73.3% of the overall payment volume in 2019. The frequency of card payments remains low in Japan at just 0.8 transactions per card per year in 2019, which is mostly due to the country’s traditional preference for cash transactions. However, the fears of COVID-19 spread through cash handing and growing preference for electronic payments are likely to push payment cards use
Ravi Sharma, Lead Banking and Payments Analyst at GlobalData

The report states that amid the pandemic consumers are increasingly shifting from cash to e-payments, especially contactless payments.

To support this trend, US-based retailer 7-Eleven Japan made contactless card acceptance available at all its stores in the country. Shoppers can use contactless payment with debit, credit, and prepaid cards from Visa, Mastercard, JCB, American Express, and Diners Club.

Besides, card issuers are making payment settlement process faster for card-accepting merchants.

In July 2020, Sumitomo Mitsui Card introduced a faster payment cycle for its merchants. That allows them to receive the proceeds from their sales made via credit cards within just 5 days compared to a month or more in the past.

We’ve reported that the volume of B2B payments facilitated by non-banks will exceed 53 billion in 2022, compared to 38 billion in 2020. That’s a 42% growth.

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