Japan's card payments market expected to reach $742.4B in 2023, a 7.5% rise led by consumer preference for electronic payments; card payments value rose 7.9% in 2022, expected to grow at a compound annual rate of 6.3% to hit $882.4B by 2026: GlobalData

Sample article from our Housing & Economy

May 26, 2023 (press release) –

Japan’s card payments market is expected to grow by 7.5% in 2023 to reach JPY97.3 trillion ($742.4 billion) in 2023, driven by the growing consumer preference for electronic payments, says GlobalData, a leading data and analytics company.

GlobalData’s Japan Payment Cards Analytics reveals that card payments value in Japan was estimated to register a healthy growth of 7.9% in 2022, driven by the rebound in economic conditions and rise in consumer spending.

Japan saw a marginal growth of 1.9% in card payments value in 2020, as it was grappling with COVID-19 pandemic and economy falling into recession. However, with economic rebound, the Japanese card market revived registering a 9.3% growth in 2021.

Kartik Challa, Senior Banking and Payments Analyst at GlobalData, comments: “Japan has traditionally been a cash driven society with cash accounting for almost two-thirds of the total payment volume in 2022. However, the use of card payments has been rising since the past few years supported by the concerted efforts by the government coupled with robust payment infrastructure. The COVID-19 pandemic also supported the growth of the non-cash payment methods, as consumers switched to digital payments to help contain the spread of the virus.”

Japan has also been taking steps to push digital payments in the country with an aim to bring cashless payments down to 40% of the overall payment transactions by 2027. It promotes electronic payments in the country through various initiatives, including raising the awareness of electronic payments among the individuals and businesses, promotion of cashless payments at small merchants and self-service kiosks, and availability of digital payments for services at government establishments.

In terms of consumer preference, while debit cards dominate in terms of card penetration, credit cards are widely preferred when it comes to usage, with credit cards accounting for 96.3% of total card payments value in 2022. This is mainly due to the associated reward programs, which are more beneficial than debit cards. Credit cards have wider acceptance among the merchants while debit cards are not that popular due to their longer settlement period.

The growth in the e-commerce market is also anticipated to support the payment cards growth, especially credit cards. According to GlobalData’s 2022 Financial Services Consumer Survey*, credit cards are the dominant payment method for e-commerce payments with 58.4% share in 2022.

Challa concludes: “The Japanese card payments market is back on growth trajectory with rebound in economic activities, rise in consumer spending, increase in e-commerce payments and government initiatives. The country’s card payments market is anticipated to grow at a healthy CAGR of 6.3% to reach JPY115.6 trillion ($882.4 billion) in 2026.”

*GlobalData’s 2022 Financial Services Consumer Survey was carried out in Q2 2022. Approximately 50,000 respondents aged 18+ were surveyed across 40 countries.

Media Enquiries

If you are a member of the press or media and require any further information, please get in touch, as we're very happy to help.

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.

See our dashboard in action - schedule an demo
Chelsey Quick
Chelsey Quick
- VP Client Success -

We offer built-to-order housing & economy coverage for our clients. Contact us for a free consultation.

About Us

We deliver market news & information relevant to your business.

We monitor all your market drivers.

We aggregate, curate, filter and map your specific needs.

We deliver the right information to the right person at the right time.

Our Contacts

1990 S Bundy Dr. Suite #380,
Los Angeles, CA 90025

+1 (310) 553 0008

About Cookies On This Site

This website stores cookies on your computer. These cookies are used to improve your website experience and provide more personalized services to you, both on this website and through other media. To find out more about the cookies we use, see our Privacy Policy. We won't track your information when you visit our site. But in order to comply with your preferences, we'll have to use just one tiny cookie so that you're not asked to make this choice again.