Payment methods in Japan - statistics & facts
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Compared to its East Asian neighbors, Japan still has a low cashless payment ratio. Since the outbreak of the COVID-19 pandemic, Japanese consumers, known for their preference for cash, have increasingly adopted digital payments in their daily lives.
Credit cards were the most commonly used payment method for online purchases. Another popular means of payment for online shopping, which accommodates the Japanese preference for cash, was the convenience store (Konbini) payment model. Konbini payments allow consumers to pay for goods and services ordered online at the counter of their local convenience store. Payments are made in advance and with cash using a code issued to customers. However, the choice of payment method also depends on availability. While convenience stores and supermarket chains are likely to accept cashless payment methods, cash might be the only option available in small shops or individual restaurants.
Cash usage
In Japan, cash is considered a secure and reliable payment method that is accepted anywhere. Government efforts to promote a cashless society and the need for contactless payments during the COVID-19 pandemic have led to an increased share of non-cash payments in the past years. Cash payments have steadily declined over the past years and accounted for 41 percent of all transactions at points of sale, according to estimates.Digital payment methods
The share of cashless payments in Japan, comprised of credit and debit cards, e-money, and QR-code payment services, stood at 39.3 percent in 2023. Credit cards were the most-used digital payment method in terms of cashless payment value and volume. However, QR code payment services have seen significant growth in past years, slowly catching up with electronic money as the go-to payment option for small store purchases. Along with the popularity of mobile payments, the number of non-bank money transfers has also grown.Availability and usage of payment methods
There are various payment options in Japan, ranging from card and mobile payments to the local convenience store payment model. Consumers opt for different payment methods depending on the location and amount of their purchase. For example, a survey found that credit cards were the most popular payment method for large purchases, while cash, e-money, and QR code services were preferred for small transactions.Credit cards were the most commonly used payment method for online purchases. Another popular means of payment for online shopping, which accommodates the Japanese preference for cash, was the convenience store (Konbini) payment model. Konbini payments allow consumers to pay for goods and services ordered online at the counter of their local convenience store. Payments are made in advance and with cash using a code issued to customers. However, the choice of payment method also depends on availability. While convenience stores and supermarket chains are likely to accept cashless payment methods, cash might be the only option available in small shops or individual restaurants.
