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Japan E-commerce Payment Market Report 2023: Market to Grow to $256.90 Bn by 2028 from $140.37 Bn in 2022 – QR Codes and Mobile Payments Power Japan’s Booming E-Commerce Landscape
The “Japan E-commerce Payment Market, Size, Forecast 2023-2028, Industry Trends, Growth, Share, Outlook, Impact of Inflation, Opportunity Company Analysis” report has been added to ResearchAndMarkets.com’s offering.
Japan E-Commerce Payment Market is projected to grow to US$ 256.90 Billion by 2028 from US$ 140.37 Billion in 2022, growing at a CAGR of 10.60% from 2022-2028
Japan boasts one of the world’s largest and most advanced e-commerce markets. As the fourth-largest e-commerce market globally, Japan has experienced rapid adoption of mobile payments, leading to billions of dollars in transactions. Mobile payments in Japan primarily rely on technologies like NFC and QR codes. Younger, tech-savvy generations find it particularly convenient to use their smartphones for payments, either through dedicated payment apps or by scanning QR codes.
Popular QR code payment brands in Japan, such as PayPay, Line Pay, and MerPay, are actively leveraging rewards and incentives to enhance customer loyalty and satisfaction. This approach aligns with the growing trend of mobile shopping in the country, which has seen significant growth in the e-commerce payment industry.
However, it’s worth noting that while Japan is known for its technological advancements, the adoption of mobile commerce payments remains relatively low due to the continued use of desktops and a significant aging population that may be less inclined to embrace smartphones.
The government’s “Cashless Vision” initiative aims to boost cashless settlements from 18.4% to 40% by 2025. To achieve this goal, the government is encouraging credit card companies to adopt APIs (Application Programming Interfaces), responding to the demand for secure and convenient fintech services. The promotion of API integration is expected to accelerate the adoption of cashless payments and drive digital transformation within the financial services sector.
The Japanese e-commerce industry is currently experiencing rapid growth, accompanied by the emergence of key consumer trends. Three notable trends shaping this landscape are sustainability, omni-channel shopping, and ID payments. E-commerce companies are recognizing the significance of these trends and adjusting their strategies to cater to evolving consumer preferences.
ID payments, in particular, offer customers secure and convenient payment options while enabling a more personalized shopping experience. As these trends continue to influence the Japanese e-commerce sector, companies that prioritize sustainability, seamless shopping experiences, and secure payment methods are likely to thrive in this evolving landscape.
In Japan e-commerce payment industry, media products hold the largest market share
The payment market for media products in Japan is currently the most significant, reflecting the country’s strong inclination towards digital media consumption.
Japan has a tech-savvy population that highly values digital content, and as a result, Japanese consumers are actively using a variety of payment methods to access and purchase media products such as streaming services, e-books, and digital downloads. This dominance underscores the changing landscape of media consumption in Japan and the increasing demand for convenient and secure payment solutions in the market.
On the other hand, the apparel and footwear segment has emerged as the fastest-growing sector in Japan’s e-commerce payment industry. With the significant rise in online shopping and shifting consumer preferences, there has been a substantial increase in the demand for convenient and secure payment methods for purchasing apparel and footwear.
E-commerce platforms and retailers are making efforts to enhance the payment experience by offering seamless transactions and implementing innovative payment solutions to cater to this growing trend. The rapid growth in the apparel and footwear sector highlights its importance within Japan’s evolving e-commerce landscape.
Credit card payments are the dominant force in Japan e-commerce payment industry, holding the majority of the market
Japan mobile payment sector is experiencing rapid growth, making it the fastest-growing segment in the country’s e-commerce payment industry. With the widespread use of smartphones and the convenience they offer, Japanese consumers are increasingly embracing mobile payment methods for their online transactions.
In a move to address the challenges faced by foreign workers in Japan and promote market expansion and deregulation, the Japanese government is planning to implement a digital salary payment system by spring 2023. This system enables companies to transfer salaries directly to workers using smartphone payment apps, bypassing the need for traditional bank accounts.
By promoting this initiative, the government aims to facilitate financial inclusivity, enhance convenience, and stimulate economic growth in the country. This trend is driven by the ease of use, enhanced security measures, and seamless integration with various e-commerce platforms. As mobile payment technologies continue to advance, their popularity and adoption are expected to further propel the growth of Japan’s e-commerce payment industry.
Credit cards offer convenience, security, and widespread acceptance, making them a preferred choice for online transactions. With well-established credit card networks and a culture of credit card usage, Japanese consumers rely on this payment method for their e-commerce purchases. While alternative payment methods are growing, credit cards continue to maintain their stronghold as the primary mode of payment in Japan’s e-commerce landscape.
Key Company
The Japan e-commerce payment market is dominated by major players such as Rakuten Group, Suica, PayPay, Origami, merPay, and D-barai.
These companies play a significant role in shaping the landscape of e-commerce payments in Japan. With their innovative payment solutions and strong market presence, they cater to the diverse payment needs of consumers and businesses alike.
The competition among these key players fosters technological advancements, improved user experiences, and a wide range of payment options, contributing to the overall growth and development of the e-commerce payment market in Japan.
Company Analysis: Overview, Recent Development, SWOT Analysis
- Rakuten Group
- Suica
- PayPal
- Origami
- merPay
Payment Method – Japan Ecommerce Payment Market has been covered from 6 viewpoints:
- Credit Card
- Convenience Store Payment
- Direct Carrier (Billing)
- Mobile Payment
- Cash on Delivery
- Other
Segment – Japan e-commerce Market has been covered from 14 viewpoints:
- Media Products
- Apparel and Footwear
- Food and Drink
- Personal Accessories and Eyewear
- Consumer Electronics
- Beauty and Personal Care
- Home wares and Home Furnishings
- Consumer Appliances
- Consumer Health
- Traditional Toys and Games
- Pet Care
- Home Improvement and Gardening
- Video Games Hardware
- Home Care
For more information about this report visit https://www.researchandmarkets.com/r/vi18z8