Japan’s card payments market value to grow 10.8% in 2024

Credit and charge cards made up 96.5% of all card payment transactions.

Japan’s card payments market is forecast to grow 10.8% to $866.8b in 2024 amidst growing preference for non-cash payments, said data and analytics firm GlobalData.

Its card payment market value grew 15.8% in 2022, and 12.8% in 2023, to reach $782b. 

Overall card payments value is expected to register a strong compound annual growth rate (CAGR) of 6.9% between 2024 and 2028,  said Ravi Sharma, GlobalData’s lead banking and payments analyst.

Credit and charge cards are the most preferred card payment type in Japan, accounting for 96.5% of all card payment transaction values in 2023. 

Attractive reward programs offered by credit card issuers, and its wide acceptance amongst merchants, made credit cards the dominant choice.

Debit card penetration in Japan is high, with everyone holding four debit cards, GlobalData said. Usage is primarily limited to cash withdrawals instead of payments due to limited consumer awareness and longer settlement periods.

The rise of e-commerce, also drove card payments’ growth, as they are the widely preferred payment tool for online purchases. Credit and charge cards accounted for 60.8% of the total e-commerce transaction value in 2023, GlobalData said.

Whilst Japan’s payment landscape is still dominated by cash, government initiatives to promote electronic transactions and improved payment infrastructure have carried payment cards to grow in prominence, said Sharma.