Japan Credit Cards Market

Japan Credit Cards Market Size and Share:

The Japan credit cards market size was valued at USD 35.6 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 66.5 Billion by 2033, exhibiting a CAGR of 7.2% from 2025-2033. Japan credit card market share is expanding due to increased cashless transactions, technological advancements, and a growing preference for digital payments. Younger generations are driving the growing trend of using mobile wallets and contactless payment methods. Additionally, promotional campaigns and partnerships are encouraging credit card usage. 

There has been a significant move from traditional cash payments to digital transactions among the Japanese population, driven by the growing convenience and efficiency of digital payment methods. The government incentives and policies to promote the adoption of cashless transaction facilities are increasing the acceptance of credit cards in case of everyday expenditure by the consumers. The features of mobile payments, QR codes, and contactless cards have further propelled the digitalization process. With a developed infrastructure for secure online and offline payments, credit cards are seen as a safer, faster alternative to carrying cash, especially in light of the pandemic, which prompted a surge in interest for touchless transactions.

Apart from this, ongoing technological innovations are the main driver for the expansion of Japan credit card market outlook. The integration of the digital payment options, including mobile wallets and secure online payment platforms, has transformed consumer engagement with the credit card. Improved security attributes, such as biometric identification and tokenization, have therefore increased consumer trust. Additionally, the creation of contactless payment methods enhances the convenience with which consumers receive their transactions. Financial institutions continually enhance their online offerings, with more flexibility for customers, reward personalization, and seamless cross-border payments - all of which contribute to an increasing preference to use credit cards.

Japan Credit Cards Market Trends:

Rising Popularity of Contactless Payments

Mobile wallet integration is one of the main trends in the Japan credit card market forecast, seeing more consumers increasingly using their smartphones as a major payment tool. While these services from major players like Apple Pay, Google Pay, or Rakuten Pay let users attach their credit cards for easy and secure payments, the adoption rate in Google Pay, for example, is around 9% in in-store modes and 20% in online forms in Japan. Loyalty programs, rewards, and promotions available in these apps enhance their attractiveness and push adoption. A consumer has the convenience of managing funds and transactions right from their mobile phones, eliminating the need for physical cards. The acceleration of mobile wallet growth was spurred by the Japanese government's push toward a cashless society, solidifying its position as an important trend in the payment landscape in Japan.

Increased Integration with Mobile Wallets and Apps

Mobile wallet integration is one of the main trends in the country's credit card market, seeing more consumers increasingly using their smartphones as a major payment tool. While these services from major players like Apple Pay, Google Pay, or Rakuten Pay let users attach their credit cards for easy and secure payments, the adoption rate in Google Pay, for example, is around 9% in in-store modes and 20% in online forms in Japan. Loyalty programs, rewards, and promotions available in these apps enhance their attractiveness and push adoption. A consumer has the convenience of managing funds and transactions right from their mobile phones, eliminating the need for physical cards. The acceleration of mobile wallet growth was spurred by the Japanese government's push toward a cashless society, solidifying its position as an important trend in the payment landscape in Japan.

Focus on Security and Fraud Prevention

As credit card usage in Japan increases, security and fraud-related issues gain special focus. In 2023, loss through fraudulent credit card use reached about ¥54.1 billion, which is a 23.9% year-on-year increase. Japanese financial institutions have adopted futuristic technologies such as biometric authentication, chip-and-PIN technology, and tokenization that can protect sensitive data. The adoption of two-factor authentication (2FA) in online transactions is also increasingly being adopted as a major security measure. Also, the Japanese government and banks are working in collaboration to achieve compliance with global security standards like EMV and PCI-DSS. With the rise of cybersecurity threats, maintaining secure transactions is essential for building consumer trust in Japan's credit card ecosystem.

Japan Credit Cards Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the Japan credit cards market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on card type, application and provider.

Analysis by Card Type:

• General Purpose Credit Cards
• Specialty and Other Credit Cards

In Japan, credit cards can be broadly classified into two categories: general-purpose credit cards and specialty or other credit cards. General-purpose credit cards are widely used for everyday purchases, offering a range of benefits like rewards points, cashback, and convenience for both in-store and online payments. Issued by leading financial institutions, these cards are widely accepted by a majority of merchants.

On the other hand, specialty credit cards cater to niche markets, offering tailored benefits for specific consumer needs. These may include cards for frequent travelers, offering travel perks, or co-branded cards linked to particular retailers or services, providing exclusive discounts or rewards. As consumer preferences evolve, both card types continue to adapt, with technological advancements and integration with mobile wallets enhancing user experience thus contributing to the Japan credit cards market growth.

Analysis by Application:

• Food and Groceries
• Health and Pharmacy
• Restaurants and Bars
• Consumer Electronics
• Media and Entertainment
• Travel and Tourism
• Others

The use of credit cards for food and grocery purchases in Japan is growing, driven by convenience and rewards programs offered by issuers. Digital payment adoption, particularly in urban areas, enhances this trend as consumers increasingly prefer cashless transactions for everyday essentials, boosting credit card penetration in this segment.

In line with this, credit cards play a crucial role in health and pharmacy payments, enabling seamless transactions for medical services and prescriptions. With increasing healthcare costs and the adoption of digital payments in clinics and pharmacies, credit cards offer a convenient and widely accepted method for managing health-related expenditures.

Also, credit card usage in restaurants and bars is supported by cashback offers and discounts targeting food lovers. The growth of dining-out culture and urban nightlife in Japan promotes cashless payment preferences, making credit cards a popular choice for patrons seeking convenience and loyalty rewards.

Besides this, Japan’s tech-savvy population often uses credit cards for consumer electronics purchases, taking advantage of installment payment options and reward points. High-value transactions and e-commerce platforms for electronics sales drive credit card adoption, reflecting the importance of credit cards in financing technology purchases.

Furthermore, the media and entertainment sector see significant credit card usage for subscriptions, ticket bookings, and streaming services. The rise of digital content consumption and event attendance contributes to this trend, with credit cards offering quick and secure payment options that cater to the tech-driven entertainment ecosystem.

Alongside this, travel and tourism are major contributors to credit card usage, driven by international travel bookings, accommodation payments, and related expenses. Japan’s focus on attracting tourists and the rising popularity of domestic travel amplify the reliance on credit cards for convenience and travel-related benefits.

Apart from this, in diverse sectors such as education, utilities, and luxury goods, credit cards are gaining traction for their flexibility and additional perks. Their integration with digital platforms and e-commerce systems expands their applicability, supporting their use across various non-traditional segments in Japan’s cashless economy.

Analysis by Provider:

• Visa
• MasterCard
• Others

Visa dominates the Japan credit card market demand with its widespread acceptance and robust global network. Known for reliability and seamless transaction processing, Visa cards are favored by consumers and businesses alike. Its partnerships with major banks and retail chains further bolster its market presence, offering extensive rewards and customer benefits.

Additionally, masterCard is a strong competitor in Japan’s credit card market, valued for its innovative payment solutions and international reach. With diverse card offerings, including premium benefits and travel perks, it caters to varied consumer needs. Strategic alliances with financial institutions and merchants enhance its accessibility and appeal among cardholders.

Along with this, the other providers, including JCB and American Express, play a significant role in Japan, targeting niche markets with tailored benefits. JCB is preferred for domestic usage due to its localized rewards, while AmEx appeals to premium users with exclusive privileges. These providers diversify the market and meet specific consumer preferences.

Regional Analysis:

• Kanto Region
• Kansai/Kinki Region
• Central/ Chubu Region
• Kyushu-Okinawa Region
• Tohoku Region
• Chugoku Region
• Hokkaido Region
• Shikoku Region

The Kanto region, including Tokyo, is Japan’s economic hub, driving significant credit card usage. With a dense urban population, advanced infrastructure, and a high concentration of retail, entertainment, and business activities, the region promotes cashless transactions, making it a leader in credit card adoption and innovative payment solutions.

Concurrently, the Kansai region is a key area for credit card growth as it is the home to major cities like Osaka and Kyoto. Its vibrant tourism, commerce, and cultural scene encourage card usage for travel, dining, and shopping, supported by a tech-savvy population and widespread acceptance of digital and credit-based payments.

However, the Chubu region, encompassing Nagoya, benefits from its industrial base and thriving automotive and manufacturing sectors. Credit cards are increasingly used for business-related expenses, retail, and leisure activities. Rising urbanization and digitalization in this region contribute to the steady growth of credit card transactions.

Besides this, tourism is a key driver of credit card adoption in the Kyushu-Okinawa region, attracting both domestic and international travelers. Cards are widely used for hospitality, dining, and transportation. The region’s growing infrastructure and adoption of cashless technologies further enhance credit card penetration among local businesses and consumers.

In addition to this, the Tohoku region, known for agriculture and natural beauty, shows growing credit card usage, particularly in tourism and local commerce. Efforts to modernize payment systems and promote cashless transactions among rural and urban populations drive this trend, supported by increasing accessibility to credit services and digital payment platforms.

Moreover, the Chugoku region, with cities like Hiroshima, sees rising credit card use in retail, dining, and transportation. Its role as a key logistics and business center supports corporate and individual card transactions. Local government initiatives promoting cashless payments further accelerate credit card adoption across various sectors.

Apart from this, Hokkaido’s thriving tourism industry and seasonal attractions significantly influence credit card adoption. Cards are extensively used for travel, accommodation, and shopping. The region’s ongoing digital transformation and focus on enhancing payment infrastructure encourage greater acceptance of credit cards among businesses and consumers.

Furthermore, the Shikoku region, characterized by its small-scale economy and cultural heritage, sees gradual credit card adoption. Growth is driven by tourism and local government efforts to modernize payment systems. Increasing use of cards for retail and hospitality services highlights the region’s shift toward cashless transactions.

Competitive Landscape:

The competitive environment features a blend of established financial institutions and digital-first companies. Established players holds a significant Japan credit cards market share, including major banks, dominate the sector with a broad range of credit card offerings, from premium cards to basic credit solutions. These companies leverage their deep customer relationships, extensive branch networks, and loyalty programs to maintain market share. Meanwhile, newer entrants, including digital payment platforms, have reshaped the market by offering innovative, mobile-centric payment solutions and seamless user experiences. Competition is also driven by the introduction of advanced payment technologies, such as contactless cards and mobile wallet integration, pushing all players to focus on enhancing security, customer engagement, and value-added services. This dynamic environment is fostering rapid innovation and consumer choice.

The report provides a comprehensive analysis of the competitive landscape in the Japan credit cards market with detailed profiles of all major companies, including:

• Japan Post Bank Co. Ltd.
• JCB Co. Ltd.
• Mitsubishi UFJ Financial Group Inc.
• Mizuho Financial Group Inc.
• Rakuten Card Co. Ltd.
• Resona Holdings Inc.
• Sumitomo Mitsui Financial Group Inc.
• The Shizuoka Bank Ltd.

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Latest News and Developments:

• In December 2024, Japan will launch its first cryptocurrency-backed credit card in collaboration with Slash Vision Labs and a Japanese credit card issuer, with the card set to be available in 2025. The Slash Card will be fully compliant with local crypto regulations and offer features like 'Pay-to-Earn' airdrops. This move reflects Japan's increasing integration of cryptocurrencies into finance and pop culture, with Slash already supporting crypto payments for manga on Comilio and expanding Web3 opportunities.
• In November 2024, Rakuten Card Co., Ltd. and Mizuho Bank, Ltd. revealed the introduction of the Mizuho Rakuten Card, a new co-branded credit card. Applications for the card will begin on December 3, 2024, with new cards issued starting the same day. A promotional campaign will also launch to celebrate the card’s release, marking a significant collaboration between the two companies in the Japanese credit card market.
• In November 2024, Visa (V.N.) unveiled its flexible payments feature in the U.S. and the United Arab Emirates to cater to the increasing demand for diverse payment options. Already offered in Hong Kong, Japan, the Philippines, Singapore, Thailand, and Vietnam, the "flexible credential" feature enables users to make payments from multiple funding sources using a single card, enhancing convenience.
• In February 2024, KONA I and IDEX Biometrics partnered to launch biometric smart cards in Japan, addressing the rise in credit card fraud, which increased by 30% annually. The high-tech, metal biometric cards are set for release in the latter half of 2024, offering secure payment and access solutions. KONA I, a South Korean smart card leader, expects Japan to account for 30% of its business by 2025.

Japan Credit Cards Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Japan credit cards market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the Japan credit cards market.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Japan credit cards industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.