, Japan
43 views

Olympics, improving economy to push Japan card payments up by 9.5%

Card payments in Japan are expected to reach $1.1t by 2024.

The improvement in consumer spending and the upcoming Summer Olympics are set to push Japan’s card payments to rise by 9.5% in 2021, forecasts data and analytics company GlobalData.

All signs point to a rebound in the use of the plastic for payments, with the reopening of the Japan’s economy, government measures encouraging electronic payments, the easing of travel restrictions, and the upcoming Tokyo Olympics.

“The upcoming Olympics and Paralympics slated for July and August 2021, respectively, are expected to provide an impetus to the country’s payments industry,” notes Kartik Challa, banking and payments senior analyst, GlobalData.

Overall, GlobalData expects card payments to register a compound annual growth rate (CAGR) of 8.3% between 2020 and 2024 and total $1.1t (JPY110.2t) in three years’ time.

“Whilst the Japan’s payment landscape has traditionally been dominated by cash, government initiatives to promote electronic payments and an improving payment infrastructure will drive the growth of the payment card market,” Challa noted.

Card use has already been given a massive push thanks to the local government’s reward program ‘My Na Point’ that was launched in September last year and just recently ended this March. It offered consumers reward points worth up to JPY5,000 ($48.4) on their purchases made using digital payments such as debit card, credit card and prepaid card.

Meanwhile, all the country’s major banks and payment participants are reportedly making their payment infrastructure compatible with foreign-issued cards and installing POS terminals at locations with high footfall, such as tourist attractions and supermarkets.

Card issuers are also noted to be working on pushing contactless adoption and encouraging consumers to shift away from cash. For instance, AEON Card, in collaboration Visa, plans to roll out around 10 million contactless cards by the end of 2021 and enable contactless feature in 100,000 cash registers across 16,700 stores including AEON, AEON MALL, Maruetsu, Welcia, and My Basket.

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Get Asian Banking & Finance in your inbox

VCs flocking to "lucrative" APAC payments segment: report

Global VC deals rose to 620 in Q1 2021.

China injects $15.5b cash into the financial system to maintain liquidity: report

The nation’s top leaders recently described economic recovery as “unbalanced and unstable.”

Chart of the Week: Card payments in China to rebound 21.3% in 2021

Card payments are set to rise as economic activities gathers pace.

Citi APAC adds nearly 650 new wealth professionals in 2021 so far

The group has added over $5b in net new money in Q1 alone.

Goldman Sachs ramps up China ambitions with hiring spree: report

It is planning to add over 400 new people in its headcount in 2021 alone.

Citi appoints new head for private banking arm in South Asia

Lee will have direct responsibility over the private bank arm of Singapore, Malaysia.

Citi APAC rolls out gender diversity program for investment, securities arm

The program’s 50 top candidates will have the chance to be recruited by the bank.

Standard Chartered, EastWest on the blueprint for building the bank of the future

Data is the new oil, says Sarabjit Anand, Standard Chartered’s CIO for Singapore and ASEAN.

Low costs buoys Australian banks’ profits, but pressures to persist

Operating profit is 46% higher than last year, but pre-impairment earnings remain subdued.

HSG shares insights on modelling core banking IT for the digital economy

Sisi Yu gives us a glimpse of how banks can achieve higher performance through improved services.