Accept payments in Japan

Japanese Payment Market Overview

Japan’s business to consumer e-commerce market is worth $150.1 billion having increased at a single-digit rate since 2015. The e-commerce market is expected to follow a similar growth trajectory to 2022, expanding at a compound annual growth rate of 6.2 percent. Despite a reputation for embracing technology and being at the forefront of digital innovation, Japan’s e-commerce growth has been slowed by an ageing population. Home to 126.8 million citizens, with an average age of 47.7 years, Japan is actually the most aged nation in the world – 28.8 percent of its population is aged 65 or older.

Investing in and offering Japanese language-enabled e-commerce platforms is essential in order to reach Japanese online shoppers. International merchants should also be aware that e-commerce web page layout and design for Japanese sites can look different to ecommerce site designs preferred in the U.S. and Europe. Web pages are often dense in images and text, with high levels of product information favored over white space.

Payment Methods in Japan

Key Market Indicators in Japan

Banks in Japan

Mobile Carriers in Japan

Integrate Japanese Payment Methods

Cards are Japan’s primary way to pay for online shopping, taking a 65 percent share of the market, or $97.6 billion in sales. Use of this method is expected to rise slightly, at a compound annual growth rate of three percent to 2022. Alongside debit and credit cards, prepaid cards are also popular in Japan, with brands including BitCash.

Cash use in Japan is still significant, used in 13 percent of transactions. This can be explained by the country-wide proliferation of konbini, convenience stores that accept cash payments for online transactions. Payment must be made within six days of receiving the item and customers must present ID when making a payment. Japan’s 55,000-plus konbini are particularly popular with teenagers without bank accounts or access to credit.