The Cards and Payments Industry in Japan: Emerging Trends and Opportunities to 2020

GlobalData’s "The Cards and Payments Industry in Japan: Emerging Trends and Opportunities to 2020", report provides detailed analysis of market trends in the Japanese cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including credit transfers, cash, payment cards and checks during the review period (2012-2016).

The report also analyzes various payment card markets operating in the industry, and provides detailed information on the number of cards in circulation, transaction values and volumes during the review period and over the forecast period (2016-2020). It also offers information on the country's competitive landscape, including the market shares of issuers and schemes.

The report brings together GlobalData’s research, modeling, and analysis expertise to allow banks and card issuers to identify segment dynamics and competitive advantages. The report also covers details of regulatory policy and recent changes in the regulatory structure.

The report provides top-level market analysis, information and insights into the Japanese cards and payments industry, including –

– Current and forecast values for each market in the Japanese cards and payments industry, including debit and credit cards.

– Detailed insights into payment instruments including credit transfers, checks, cash and payment cards. It also, includes an overview of the country's key alternative payment instruments.

– E-commerce market analysis and payment methods.

– Analysis of various market drivers and regulations governing the Japanese cards and payments industry.

– Detailed analysis of strategies adopted by banks and other institutions to market debit and credit cards.

Scope

– The Japanese government undertook a number of initiatives to encourage electronic payments during the review period. As part of its Regional Revitalization policy launched in June 2014, the government urged banks to upgrade domestic ATMs to make them compatible with overseas-issued cards, due to a rise in inbound tourists. In January 2016, the Ministry of Economy, Trade and Industry announced plans to launch a mobile payment (m-payment) app for foreign visitors. Consumers register passport and credit card details in the app, and make payments at retail outlets using mobile phones.

– Japan Post Bank, Seven Bank, Mitsui Banking, Mitsubishi UFJ, Mizuho Bank and E-net Japan Corporation have installed ATMs that accept foreign-issued payment cards. All of Seven Bank’s ATMs – primarily located in 7-Eleven stores – now accept foreign cards. The company, which has 23,000 ATMs, plans to expand the network by 2,000 by 2018. Japan Post Bank also plans to install 3,500 ATMs by 2018.

– The government aims to welcome 40 million tourists a year by 2020, as a total of 25.4 million tourists visited Japan in 2016. To help intentional tourists, the government abolished tax for foreign travelers on confectionery, cosmetics, food, alcohol and medicinal items from October 2014. According to the new law, tourists spending US$42.7 (JPY5,000) or above at specified merchants are eligible for tax exemptions from bills.

Reasons to buy

– Make strategic business decisions, using top-level historic and forecast market data, related to the Japanese cards and payments industry and each market within it.

– Understand the key market trends and growth opportunities in the Japanese cards and payments industry.

– Assess the competitive dynamics in the Japanese cards and payments industry.

– Gain insights into marketing strategies used for various card types in Japan.

– Gain insights into key regulations governing the Japanese cards and payments industry.

Companies mentioned

Japan Post Bank

Sumitomo Mitsui Financial Group

Mizuho Financial Group

Mitsubishi UFJ Financial Group

Resona Holdings

Credit Saison

Rakuten

Toyota

Aeon credit service

Visa

Mastercard

JCB

American Express

J-Debit

Table of Contents

Table of Contents

EXECUTIVE SUMMARY 2

1.1. Market overview 2

1.2. Key facts 3

1.3. Top five industry events 4

2. PAYMENT INSTRUMENTS 10

2.1. Current payment environment 10

3. E-COMMERCE AND ALTERNATIVE PAYMENTS 12

3.1. E-Commerce market analysis 12

3.2. Alternative payment solutions 14

3.2.1. Osaifu-Keitai Wallet 14

3.2.2. PayPal 14

3.2.3. Apple Pay 14

3.2.4. Android Pay 14

3.2.5. MasterPass 15

3.2.6. QUICPay 15

3.2.7. Boku 15

3.2.8. Paidy 15

3.2.9. Line Pay 15

4. REGULATIONS IN THE CARDS AND PAYMENTS INDUSTRY 16

4.1. Regulatory framework 16

4.2. Anti-money laundering and counter terrorism financing (AML/CTF) 16

4.3. Foreign direct investment (FDI) regulations 17

5. ANALYSIS OF CARDS AND PAYMENTS INDUSTRY DRIVERS 18

6. PAYMENT CARDS 20

7. DEBIT CARDS 22

7.1. Debit cards market analysis 22

7.2. Competition in the debit cards market 24

7.3. Debit cards comparison 25

8. PAY LATER CARDS 26

8.1. Pay later cards market analysis 26

8.2. Competition in the pay later cards market 28

8.3. Pay later cards comparison 30

9. PREPAID CARDS 31

10. APPENDIX 33

10.1. Abbreviations and acronyms 33

10.2. Supplementary data 34

10.3. Definitions 42

10.4. Methodology 44

10.5. Bibliography 46

10.6. Further reading 46

List of Tables

List of Tables

Table 1: Japan, Key Facts, 2016 3

Table 2: Japan, Regional Benchmarking of Payment Cards, 2016 3

Table 3: Japan, Modes of Entry of Foreign Banks 17

Table 4: Japan, Debit Cards Comparison and Key Features, 2016 25

Table 5: Japan, Gold Credit Cards Comparison and Key Features, 2016 30

Table 6: Japan, Premium Credit Cards Comparison and Key Features, 2016 30

Table 7: Japan, Payment Instrument Transaction Values (JPY Trillion), 2012-2016 34

Table 8: Japan, Payment Instrument Transaction Values (US$ Billion), 2012-2016 34

Table 9: Japan, Payment Instrument Transaction Volumes (Million), 2012-2016 34

Table 10: Japan, Payment Cards in Circulation by Type (Million), 2012-2020 34

Table 11: Japan, Volume of Payment Card Transactions (Million), 2012-2020 35

Table 12: Japan, Value of Payment Card Transactions (JPY Trillion), 2012-2020 35

Table 13: Japan, Value of Payment Card Transactions (US$ Billion), 2012-2020 35

Table 14: Japan, Debit Cards in Circulation (Million), 2012-2020 35

Table 15: Japan, Debit Card Transaction Volumes, 2012-2020 36

Table 16: Japan, Debit Card Transaction Values (JPY), 2012-2020 36

Table 17: Japan, Debit Card Transaction Values (US$), 2012-2020 36

Table 18: Japan, Debit Cards in Circulation by Scheme (Million), 2012-2016 37

Table 19: Japan, Debit Card Transaction Values by Scheme (JPY Trillion), 2012-2016 37

Table 20: Japan, Debit Card Transaction Values by Scheme (US$ Billion), 2012-2016 37

Table 21: Japan, Debit Card Transaction Values by Issuer (JPY Billion), 2012-2016 37

Table 22: Japan, Debit Card Transaction Values by Issuer (US$ Billion), 2012-2016 38

Table 23: Japan, Pay Later Cards in Circulation (Million), 2012-2020 38

Table 24: Japan, Pay Later Card Transaction Volumes, 2012-2020 38

Table 25: Japan, Pay Later Card Transaction Values (JPY), 2012-2020 39

Table 26: Japan, Pay Later Card Transaction Values (US$), 2012-2020 39

Table 27: Japan, Pay Later Cards in Circulation by Scheme (Million), 2012-2016 39

Table 28: Japan, Pay Later Card Transaction Values by Scheme (JPY Billion), 2012-2016 40

Table 29: Japan, Pay Later Card Transaction Values by Scheme (US$ Billion), 2012-2016 40

Table 30: Japan, Pay Later Card Transaction Values by Issuer (JPY Billion), 2012-2016 40

Table 31: Japan, Pay Later Card Transaction Values by Issuer (US$ Billion), 2012-2016 41

Table 32: Japan, Prepaid Cards in Circulation (Million), 2012-2020 41

Table 33: Japan, Prepaid Card Transaction Values (JPY Trillion), 2012-2020 41

Table 34: Japan, Prepaid Card Transaction Values (US$ Billion), 2012-2020 41

Table 35: Key Definitions 42

List of Figures

List of Figures

Figure 1: Japan, Payment Instrument Shares by Transaction Value (%), 2012 vs 2016 10

Figure 2: Japan, Payment Instrument Shares by Transaction Volume (%), 2012 vs 2016 11

Figure 3: Japan, E-Commerce Value 12

Figure 4: Japan, Population and Economic Indicators 18

Figure 5: Japan, ATMs, POS Terminals and Household Consumption 19

Figure 6: Japan, Payment Cards Transaction Value and Cards in Circulation, 2012-2021 20

Figure 7: Japan, Debit Card Penetration and Turnover Per Card 22

Figure 8: Japan, Debit Cards Scheme and Issuer Transaction Value Share (%), 2016 24

Figure 9: Japan, Pay Later Card Penetration and Turnover Per Card 26

Figure 10: Japan, Pay Later Cards Scheme and Issuer Transaction Value Share (%), 2016 28

Figure 11: Japan, Prepaid Cards in Circulation and Transaction Value, 2012-2020 31

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