The Cards and Payments Industry in Japan: Emerging Trends and Opportunities to 2020

  • ID: 3733639
  • Report
  • Region: Japan
  • 48 pages
  • GlobalData
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FEATURED COMPANIES

  • Aeon credit service
  • Credit Saison
  • JCB
  • Mastercard
  • Rakuten
  • Toyota
  • MORE
The Cards and Payments Industry in Japan: Emerging Trends and Opportunities to 2020

Summary:

Japan’s economy went through a crisis during the review period (2012-2016) as a result of a growing elderly population, a contracting workforce and declining exports. The government expects the economy to recover with rises in consumer spending and capital investment over the forecast period (2016-2020). Japan’s payment landscape continues to be dominated by cash, which accounted for 79.7% of the overall payment volume in 2016. With government initiatives to promote electronic transactions, the upcoming Olympic Games, the adoption of technology such as EMV and NFC, and improved banking infrastructure to accept of foreign-issued cards, payment cards gained prominence during the review period.

Credit cards are popular among Japanese consumers, due to the rewards they offer and their high level of acceptance. Credit cards remained the largest in the Japanese payment cards market, accounting for 84.3% of the overall transaction value in 2016. The number of credit card transactions rose from 6.9 Billion in 2012 to 9.6 Billion in 2016.

Most convenience and department stores in Japan do not accept debit card payments, as the long settlement process for debit card transactions make them unattractive to merchants. In-store payments are settled on the customers’ accounts the next day, while merchants’ accounts are credited after two or three days. Further, many ATMs cannot be used for cash withdrawals at specific times during the night.

The upcoming 2020 Olympic and Paralympic Games are expected to provide impetus to the country’s cards and payments industry. To supplement these global events, the Japanese government has appealed for banks and card issuers to make ATMs compatible with foreign-issued payment cards. Japan Post Bank, Seven Bank, Mitsui Banking, Mitsubishi UFJ, Mizuho Bank and E-net Japan Corporation have installed ATMs that accept foreign-issued cards.

The report 'The Cards and Payments Industry in Japan: Emerging Trends and Opportunities to 2020' provides top-level market analysis, information and insights into the Japanese cards and payments industry.

In depth, this report provides the following:
  • Current and forecast values for each market in the Japanese cards and payments industry, including debit and credit cards.
  • Detailed insights into payment instruments including credit transfers, checks, cash and payment cards. It also, includes an overview of the country's key alternative payment instruments.
  • E-commerce market analysis and payment methods.
  • Analysis of various market drivers and regulations governing the Japanese cards and payments industry.
  • Detailed analysis of strategies adopted by banks and other institutions to market debit and credit cards.
Companies mentioned in this report: Japan Post Bank, Sumitomo Mitsui Financial Group, Mizuho Financial Group, Mitsubishi UFJ Financial Group, Resona Holdings, Credit Saison, Rakuten, Toyota, Aeon credit service, Visa, Mastercard, JCB, American Express, J-Debit.

Scope:
  • The Japanese government undertook a number of initiatives to encourage electronic payments during the review period. As part of its Regional Revitalization policy launched in June 2014, the government urged banks to upgrade domestic ATMs to make them compatible with overseas-issued cards, due to a rise in inbound tourists. In January 2016, the Ministry of Economy, Trade and Industry announced plans to launch a mobile payment (m-payment) app for foreign visitors. Consumers register passport and credit card details in the app, and make payments at retail outlets using mobile phones.
  • Japan Post Bank, Seven Bank, Mitsui Banking, Mitsubishi UFJ, Mizuho Bank and E-net Japan Corporation have installed ATMs that accept foreign-issued payment cards. All of Seven Bank’s ATMs - primarily located in 7-Eleven stores - now accept foreign cards. The company, which has 23,000 ATMs, plans to expand the network by 2,000 by 2018. Japan Post Bank also plans to install 3,500 ATMs by 2018.
  • The government aims to welcome 40 million tourists a year by 2020, as a total of 25.4 million tourists visited Japan in 2016. To help intentional tourists, the government abolished tax for foreign travelers on confectionery, cosmetics, food, alcohol and medicinal items from October 2014. According to the new law, tourists spending US$42.7 (JPY5,000) or above at specified merchants are eligible for tax exemptions from bills.
Reasons to Buy:
  • Make strategic business decisions, using top-level historic and forecast market data, related to the Japanese cards and payments industry and each market within it.
  • Understand the key market trends and growth opportunities in the Japanese cards and payments industry.
  • Assess the competitive dynamics in the Japanese cards and payments industry.
  • Gain insights into marketing strategies used for various card types in Japan.
  • Gain insights into key regulations governing the Japanese cards and payments industry.
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Note: Product cover images may vary from those shown
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FEATURED COMPANIES

  • Aeon credit service
  • Credit Saison
  • JCB
  • Mastercard
  • Rakuten
  • Toyota
  • MORE
EXECUTIVE SUMMARY
1.1. Market overview
1.2. Key facts
1.3. Top five industry events

2. PAYMENT INSTRUMENTS
2.1. Current payment environment

3. E-COMMERCE AND ALTERNATIVE PAYMENTS
3.1. E-Commerce market analysis
3.2. Alternative payment solutions
3.2.1. Osaifu-Keitai Wallet
3.2.2. PayPal
3.2.3. Apple Pay
3.2.4. Android Pay
3.2.5. MasterPass
3.2.6. QUICPay
3.2.7. Boku
3.2.8. Paidy
3.2.9. Line Pay

4. REGULATIONS IN THE CARDS AND PAYMENTS INDUSTRY
4.1. Regulatory framework
4.2. Anti-money laundering and counter terrorism financing (AML/CTF)
4.3. Foreign direct investment (FDI) regulations

5. ANALYSIS OF CARDS AND PAYMENTS INDUSTRY DRIVERS

6. PAYMENT CARDS

7. DEBIT CARDS
7.1. Debit cards market analysis
7.2. Competition in the debit cards market
7.3. Debit cards comparison

8. PAY LATER CARDS
8.1. Pay later cards market analysis
8.2. Competition in the pay later cards market
8.3. Pay later cards comparison

9. PREPAID CARDS

10. APPENDIX
10.1. Abbreviations and acronyms
10.2. Supplementary data
10.3. Definitions
10.4. Methodology
10.5. Bibliography
10.6. Further reading

List of Tables:
Table 1: Japan, Key Facts, 2016
Table 2: Japan, Regional Benchmarking of Payment Cards, 2016
Table 3: Japan, Modes of Entry of Foreign Banks
Table 4: Japan, Debit Cards Comparison and Key Features, 2016
Table 5: Japan, Gold Credit Cards Comparison and Key Features, 2016
Table 6: Japan, Premium Credit Cards Comparison and Key Features, 2016
Table 7: Japan, Payment Instrument Transaction Values (JPY Trillion), 2012-2016
Table 8: Japan, Payment Instrument Transaction Values (US$ Billion), 2012-2016
Table 9: Japan, Payment Instrument Transaction Volumes (Million), 2012-2016
Table 10: Japan, Payment Cards in Circulation by Type (Million), 2012-2020
Table 11: Japan, Volume of Payment Card Transactions (Million), 2012-2020
Table 12: Japan, Value of Payment Card Transactions (JPY Trillion), 2012-2020
Table 13: Japan, Value of Payment Card Transactions (US$ Billion), 2012-2020
Table 14: Japan, Debit Cards in Circulation (Million), 2012-2020
Table 15: Japan, Debit Card Transaction Volumes, 2012-2020
Table 16: Japan, Debit Card Transaction Values (JPY), 2012-2020
Table 17: Japan, Debit Card Transaction Values (US$), 2012-2020
Table 18: Japan, Debit Cards in Circulation by Scheme (Million), 2012-2016
Table 19: Japan, Debit Card Transaction Values by Scheme (JPY Trillion), 2012-2016
Table 20: Japan, Debit Card Transaction Values by Scheme (US$ Billion), 2012-2016
Table 21: Japan, Debit Card Transaction Values by Issuer (JPY Billion), 2012-2016
Table 22: Japan, Debit Card Transaction Values by Issuer (US$ Billion), 2012-2016
Table 23: Japan, Pay Later Cards in Circulation (Million), 2012-2020
Table 24: Japan, Pay Later Card Transaction Volumes, 2012-2020
Table 25: Japan, Pay Later Card Transaction Values (JPY), 2012-2020
Table 26: Japan, Pay Later Card Transaction Values (US$), 2012-2020
Table 27: Japan, Pay Later Cards in Circulation by Scheme (Million), 2012-2016
Table 28: Japan, Pay Later Card Transaction Values by Scheme (JPY Billion), 2012-2016
Table 29: Japan, Pay Later Card Transaction Values by Scheme (US$ Billion), 2012-2016
Table 30: Japan, Pay Later Card Transaction Values by Issuer (JPY Billion), 2012-2016
Table 31: Japan, Pay Later Card Transaction Values by Issuer (US$ Billion), 2012-2016
Table 32: Japan, Prepaid Cards in Circulation (Million), 2012-2020
Table 33: Japan, Prepaid Card Transaction Values (JPY Trillion), 2012-2020
Table 34: Japan, Prepaid Card Transaction Values (US$ Billion), 2012-2020
Table 35: Key Definitions

List of Figures:
Figure 1: Japan, Payment Instrument Shares by Transaction Value (%), 2012 vs 2016
Figure 2: Japan, Payment Instrument Shares by Transaction Volume (%), 2012 vs 2016
Figure 3: Japan, E-Commerce Value
Figure 4: Japan, Population and Economic Indicators
Figure 5: Japan, ATMs, POS Terminals and Household Consumption
Figure 6: Japan, Payment Cards Transaction Value and Cards in Circulation, 2012-2021
Figure 7: Japan, Debit Card Penetration and Turnover Per Card
Figure 8: Japan, Debit Cards Scheme and Issuer Transaction Value Share (%), 2016
Figure 9: Japan, Pay Later Card Penetration and Turnover Per Card
Figure 10: Japan, Pay Later Cards Scheme and Issuer Transaction Value Share (%), 2016
Figure 11: Japan, Prepaid Cards in Circulation and Transaction Value, 2012-
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  • Japan Post Bank
  • Sumitomo Mitsui Financial Group
  • Mizuho Financial Group
  • Mitsubishi UFJ Financial Group
  • Resona Holdings
  • Credit Saison
  • Rakuten
  • Toyota
  • Aeon credit service
  • Visa
  • Mastercard
  • JCB
  • American Express
  • J-Debit
Note: Product cover images may vary from those shown
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Note: Product cover images may vary from those shown
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