Leading cashless payments methods
Non-cash means of payment refer to any digital payment made without exchanging cash, such as card payments and mobile payments. In Japan, there is a variety of digital payment options available to consumers, ranging from credit cards and debit cards to electronic money and smartphone payment services. Credit cards are one of the most established digital payment methods, used not only in stores but also for online shopping and regular payments. Transactions with credit cards accounted for the major share of cashless payments in 2022, followed by QR code payment services, electronic money, and debit cards.
E-money in the form of prepaid IC cards was introduced as early as 2001 as a fare collection system for public transportation and has become a widespread payment method accepted in many stores and supermarkets. More recently, mobile payment methods such as QR code payment services have gained increasing popularity.
Promotion of cashless payments
While the share of cashless payments has doubled throughout the last decade, Japanese consumers have long been known for their preference for cash, which is considered a safe and reliable payment method. Fear of personal information leakage and overspending are leading concerns Japanese consumers have about digital payments. Meanwhile, convenience and discounts received through loyalty programs are regarded as the main benefits.
The government aims to raise the share of cashless payments in Japan to around 40 percent by 2025. As a major step towards promoting non-cash means of payment, the cashless campaign was launched in October 2019, along with a consumption tax hike. From 2020 onwards, cashless payments received a further boost from the impact of the coronavirus pandemic (COVID-19).
As another step toward a cashless society, the government has lifted a ban on digital wage payments, allowing employees to receive salaries as digital money via non-bank fund transfer service providers from April 2023 onwards. As more consumers use digital payments in their everyday lives and the government continues to promote a cashless society, cashless payment usage in Japan is likely to expand in the coming years.
This text provides general information. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text.
