Payments in Japan - (COVID-19) Impact Snapshot

Summary

The Coronavirus (SARS-CoV-2) outbreak, dubbed COVID-19, is first and foremost a human tragedy, affecting millions of people globally. The contagious Coronavirus, which broke out at the close of 2019, has led to a medical emergency across the world, with the World Health Organization officially declaring the novel Coronavirus a pandemic on March 11, 2020.

A similar trend has been seen in Japan, as economic growth in the country dipped in the first quarter of 2020. However, Japan has been able to control the COVID-19 pandemic quite well thanks to robust government measures. As of June 19 there were 17,642 confirmed cases, with the majority of individuals having already recovered.

Coronavirus has had a profound effect on the Japanese travel and tourism industry. There has been a sharp rise in the cancellation of flights and hotel bookings, as well as the postponement of major upcoming events such as the 2020 Olympic and Paralympic Games.

This report focuses on the impact of the Coronavirus outbreak on both the economyand the cards and payments industry in Japan. Based on our proprietary datasets, the snapshotprovides a detailed comparison between pre-COVID-19 forecasts andrevised forecasts of total payment card, debit card, and credit and charge card transactions by value and volume. It also offers information on measures taken by the government to combat Coronavirus.

Scope

• Online retailers will benefit from the current situation. Companies like Rakuten, Amazon, and Yahoo Shopping have seen their monthly online sales increase since the outbreak of the pandemic.
• Additionally, when shopping in-store for essentials, consumers will shift from cash payments to digital payments, particularly mobile wallets, in order to avoid exposure to potential disease vectors such as cash and POS terminals. As a result, the use of mobile phones for payments is expected to grow.
• Japan could benefit from its emphasis on technology during these testing times. Unmanned retail stores such as the Catch&Go digital store and 7-Eleven cashier-less stores could gain widespread acceptance.

Reasons to Buy

• Make strategic decisions using top-level revised forecast data on the Japanese payment industry.
• Understand the key market trends, challenges, and opportunities in the Japanese cards and payments industry.
• Receive a comprehensive insight into payments market in Japan.