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Japanese consumers prefer card payments to cash amid COVID-19 outbreak, finds GlobalData

Friday 14 August 2020 13:49 CET | News

GlobalData has revealed insights regarding Japan-based consumers’ shifting preferences towards card payments.

According to the press release, Japan is among the handful of countries that effectively controlled the COVID-19 pandemic with swift measures. A rise in consumer spending is expected with the country now moving towards normalisation with the easing of restrictions, which in turn will support card payments growth.

Moreover, Global Data’s revised forecasts shows that the value of card payments in Japan is estimated to grow by 2.1% in 2020. The value is expected to reach USD 839.4 billion by 2023, at a compound annual growth rate (CAGR) of 6.0% between 2020 and 2023.

As a result of the COVID-19 outbreak, consumers are increasingly shifting from cash to electronic mode of payments, especially contactless payments. To support this trend, in June 2020, retailer Seven-Eleven Japan made contactless card acceptance available at all its stores in the country, enabling shoppers to use contactless payments with debit, credit, and prepaid cards from major brands – Visa, Mastercard, JCB, American Express, and Diners Club. 

Furthermore, cards issuers are making payment settlement process faster for card accepting merchants (especially the smaller merchants) by encouraging them to accept more card transactions. Accordingly, in July 2020, Sumitomo Mitsui Card introduced a faster payment cycle for its merchants, allowing them to receive the proceeds from their sales made via credit cards within just five days compared to a month or more in the past. 

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Keywords: GlobalData, research, Japan, electronic payments, COVID-19, contactless payments, Seven-Eleven Japan, debit cards, credit cards, prepaid cards, Visa, MasterCard, JCB, American Express, Diners Club, cards issuers, payment settlement, merchants, card transactions, Sumitomo Mitsui Card, payment cycle
Categories: Payments & Commerce
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Countries: Japan
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