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Payment cards: the preferred payment method in Japan

Tuesday 21 May 2024 10:38 CET | News

Research conducted by data and analytics company GlobalData has revealed that payment cards remain the preferred payment method for online purchases in Japan. 

As detailed in GlobalData’s 2023 Financial Services Consumer Survey, the preferred payment method of Japanese individuals remains payment cards when it comes to online purchases, collectively accounting for approximately 63% share in total ecommerce payments in 2023. Additionally, the research underlined ecommerce market in Japan expanded by 9.1% in 2023 to reach nearly USD 177.3 billion. The growth was supported by the tech-focused population, high internet penetration, and secure payment solutions.

Research conducted by data and analytics company GlobalData has revealed that payment cards remain the preferred payment method for online purchases in Japan.

More information on the survey

GlobalData’s survey revealed that nearly 87.2% of Japanese consumers shopped online in the past six months, whilst only 5.7% of respondents said that they never did. This underscores the inclination of consumers in the region to conduct their shopping online, with the move being attributed to the increased convenience of this method, as well as the numerous online payment solutions currently present on the market. Additionally, the ecommerce market is projected to continue its growth, being estimated to reach USD 191.9 billion in 2024. Japanese consumers are increasingly leveraging digital platforms, making ecommerce an integral part of their shopping experience.

Furthermore, consumers were also encouraged to shop online by the presence of secure payment solutions, such as Mastercard ID Check, and accelerated checkout options, including PayPal Checkout. Also, GlobalData’s report highlighted that payment cards were amongst the most used tools for ecommerce purchases, with credit and charge cards having a dominant share of nearly 60.8%. Credit card usage increased due to the capabilities provided to consumers, including reward points, cashback, discounts at partner merchants, and the availability of instalment payment facilities. Even if payment cards are the dominant choice for Japanese individuals, alternative payment solutions are also predominantly utilised for online purchases and account for a 28% share.

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Keywords: payments , online payments, online shopping, cashback, payment methods, ecommerce
Categories: Payments & Commerce
Companies: GlobalData
Countries: Japan
This article is part of category

Payments & Commerce

GlobalData

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