Credit cards in Japan - statistics & facts
In contrast to its East Asian neighbors, Japan still prefers cash. Among several payment options, credit cards are the most popular non-cash alternative among Japanese consumers. While card-based payments are predominant in Japan’s growing cashless payment market, the popularity of other digital payment methods is on the rise. The gross transaction value of credit cards has been on an upward trend over the past decade, pushed by an increase in online shopping and the rise of cashless payments in general.
Japan’s first credit card company, JCB, was established in 1961. The company operates an international credit card network and is one of the country's leading credit card issuers. Led by JCB, local card schemes have a strong presence in the domestic payment card market, competing with other global brands, such as VISA and Mastercard. Banks and credit card companies, some of them affiliated with retailers and manufacturers, are major card issuers in Japan. AEON Financial Service, Credit Saison, Mitsubishi UFJ Nicos, Rakuten Card, and Sumitomo Mitsui Card are among the largest credit card companies.
Japanese consumers are risk-averse when it comes to credit card debt. Credit card purchases are usually paid off within the following month and deducted from bank accounts. While multiple installment options and revolving credit are available, they are far less common in Japan than elsewhere.
Credit cards are the favorite digital payment option in cash-loving Japan. Driven by higher cashless payment adoption among consumers and the increased usage of e-commerce services, the credit card market has grown significantly in the past decade, despite competition from new digital payment options such as QR code payment services. The market is expected to expand further in the coming years.
Credit card industry in Japan
Credit cards have emerged to become the most popular alternative to cash in Japan since first being issued in the 1960s. Accounting for 83.5 percent of digital payments, credit cards are used far more than any other digital payment instrument in Japan, especially when compared to debit cards. Over the past decade, the share of credit cards in digital payment use has been declining due to the emergence of new payment options such as QR code payment services. Despite this development, the credit card market has steadily grown, with the gross transaction value of issuers estimated to reach over 99 trillion Japanese yen in the fiscal year 2023. This growth was pushed by an expanding e-commerce market, increased cashless payment usage, and more recently by the recovery of outdoor and shopping activities. The market is forecast to expand to 158 trillion yen until 2028.Japan’s first credit card company, JCB, was established in 1961. The company operates an international credit card network and is one of the country's leading credit card issuers. Led by JCB, local card schemes have a strong presence in the domestic payment card market, competing with other global brands, such as VISA and Mastercard. Banks and credit card companies, some of them affiliated with retailers and manufacturers, are major card issuers in Japan. AEON Financial Service, Credit Saison, Mitsubishi UFJ Nicos, Rakuten Card, and Sumitomo Mitsui Card are among the largest credit card companies.
How are credit cards used?
With the number of cards issued by 2024 exceeding 313 million and many cardholders owning more than one card, credit cards are a widespread means of payment consumers resort to when making large purchases in department stores, general retail stores, or when shopping online or making regular payments. Credit cards are often tied to reward programs and additional services, which is a major incentive for consumers to use them.Japanese consumers are risk-averse when it comes to credit card debt. Credit card purchases are usually paid off within the following month and deducted from bank accounts. While multiple installment options and revolving credit are available, they are far less common in Japan than elsewhere.
Credit cards are the favorite digital payment option in cash-loving Japan. Driven by higher cashless payment adoption among consumers and the increased usage of e-commerce services, the credit card market has grown significantly in the past decade, despite competition from new digital payment options such as QR code payment services. The market is expected to expand further in the coming years.
