Japan Mobile Payments Market

Japan Mobile Payments Market Size and Share:

The Japan mobile payments market size was valued at USD 173 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 1,463 Billion by 2033, exhibiting a CAGR of 23.40% from 2025-2033.  The Japan mobile payments market share is driven by factors such as widespread smartphone adoption, government cashless initiatives, and increasing demand for convenience. Improved security features, which include biometric authentication, boost user trust. Strategic partnerships between tech companies and financial institutions, along with the rise of e-commerce, further accelerate the adoption of mobile payments in Japan.

With high smartphone adoption rates in Japan, individuals are turning to mobile payment apps, offering easy access to digital wallets and financial services. Additionally, mobile payments provide a fast, seamless, and contactless transaction experience, making them more attractive for daily use. Individuals appreciate the convenience of paying via their smartphones instead of relying on cash or cards. Moreover, the governing body is implementing several initiatives to promote cashless transactions, such as offering tax incentives, subsidies, and digital payment rewards programs, encouraging both businesses and individuals to embrace mobile payments. Besides this, mobile payment solutions in Japan are linked to transportation systems, such as trains, buses, and taxis. This integration allows people to pay for transport services easily, further cementing mobile payments as a part of everyday life.

Furthermore, mobile payment services incorporate advanced security features like encryption, two-factor authentication, and biometric verification, such as fingerprint or facial recognition. These security measures help build user trust and minimize concerns about fraud or data breaches. In addition, the growing use of quick response (QR) codes for mobile payments is gaining popularity in Japan. QR-based payments are simple to use and provide a cost-effective solution for small and medium-sized businesses to accept digital payments without requiring advanced infrastructure. Apart from this, the rising trend of online shopping, driven by increased internet usage, is bolstering the Japan mobile payments market growth. Individuals prefer the ease of paying through mobile apps for online purchases, and mobile payments are integrated into e-commerce platforms.

Japan Mobile Payments Market Trends:

Rising Popularity of E-Commerce and Online Shopping

The IMARC Group projects that the e-commerce market in Japan will hit US$ 667.4 billion by 2032, demonstrating a compound annual growth rate (CAGR) of 11.60% from 2024 to 2032. With a significant increase in the number of people turning to online platforms for purchasing goods and services, the demand for convenient, secure, and efficient payment options is growing. Mobile payments offer a seamless way to complete transactions without the need to enter payment details repeatedly, making it an attractive option for e-commerce platforms. With the rise in mobile commerce, or m-commerce, people are looking for quicker, more secure ways to complete their purchases on smartphones, leading to a natural integration of mobile payment options. Retailers and service providers are also adapting to this shift by optimizing their platforms to make it suitable for mobile transactions, ensuring a smooth and user-friendly experience. This trend is further accelerating as individuals continue to embrace the convenience of shopping from their mobile devices, driving the demand for mobile payment solutions.

Increased Merchant Adoption of Contactless Payment Solutions

Businesses are seeking to offer more efficient and client-friendly payment methods, which is leading to a shift towards contactless technology, such as NFC-enabled solutions. This trend is supported by the introduction of platforms that allow merchants to accept payments using only smartphones or tablets, eliminating the need for additional hardware. By offering seamless and quick transactions, contactless payments improve the overall client experience, streamline checkout processes, and reduce waiting times. Moreover, these solutions often support a variety of payment methods, such as credit or debit cards, digital wallets, and mobile apps, giving merchants the flexibility to cater to different user preferences. As more businesses integrate these technologies, they create a more robust infrastructure for mobile payments, fueling wider adoption and market growth. In 2024, Soft Space, along with partners GMO Financial Gate, Sumitomo Mitsui Card Company, and SMBC GMO PAYMENT, launched "Tap to Pay on iPhone" for Japanese merchants. The service allows merchants to accept contactless payments through just an iPhone and the stera tap iOS app, simplifying the payment process. The solution supports credit/debit cards, Apple Pay, and digital wallets via NFC technology.

Support for Cross-Border Transactions

With international tourists, expatriates, and businesses operating globally, there is a higher need for payment solutions that can facilitate currency conversions and cross-border payments quickly and securely. Mobile payment platforms in Japan are integrated with international payment networks, making it easier for businesses as well as individuals to make and receive payments from abroad. Additionally, many mobile payment services allow users to link multiple currencies or international credit cards to their accounts, streamlining transactions for users engaged in cross-border activities. This ability to manage both domestic and international transactions without physical currency or the need for foreign exchange services contributes to the growing appeal of mobile payments, particularly in the context of international business and tourism sectors. In 2024, HIVEX launched its Consumer-Present Mode (CPM) payment method in Japan, allowing international mobile payment users to scan QR codes at major retail merchants. HIVEX also welcomed over 4 million PXPay Plus users to the network, enhancing cross-border payment experiences.

Japan Mobile Payments Industry Segmentation:

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

Analysis by Payment Type:

• Proximity Payment
  • Near Field Communication (NFC)
  • Quick Response (QR) Code
• Remote Payment 
  • Internet Payments
  • Direct Operator Billing
  • Digital Wallet
  • SMS Payments

Proximity payment [near field communication (NFC) and quick response (QR) code], enable transactions that occur when the user is physically near the payment terminal or code. NFC payments allow for quick, touchless transactions through devices, while QR code payments rely on scanning a code to initiate payment. Both methods offer a seamless and efficient way for people to make payments at point-of-sale locations, providing convenience and speed in a variety of transaction scenarios.

Remote payment (internet payments, direct operator billing, digital wallet, and SMS payments) involves transactions that are made without physical proximity to a payment terminal. Internet payments allow people to make purchases online, while direct operator billing facilitates payments through mobile network providers. Digital wallets enable users to store payment information securely and make transactions both online and offline. SMS payments allow for the quick purchase of goods or services via text messaging. These payment types are primarily used for e-commerce, digital services, and mobile-based transactions, offering flexibility and accessibility to individuals.

Analysis by Application:

• Entertainment
• Energy and Utilities
• Healthcare
• Retail
• Hospitality and Transportation
• Others

The entertainment segment holds a notable Japan mobile payment market share, particularly in areas like gaming, live events, and digital media subscriptions. Mobile payment solutions offer individuals a convenient way to purchase game credits, concert tickets, and access streaming platforms. The ease of transaction and integration with digital platforms makes mobile payments an attractive option for entertainment-related purchases.

In Japan, mobile payments are gaining traction within the energy and utilities industry, as individuals utilize mobile applications to settle their electricity, water, and gas bills. This industry takes advantage of the rising demand for easy, portable payment methods that remove the necessity for physical bill payments or paper invoices. Mobile payment solutions are incorporated into utility applications, streamlining the payment procedure and improving user contentment.

In the healthcare industry, mobile payments are increasingly becoming popular as a way to pay for medical services, medications, and health-related items. Mobile wallets and payment applications are utilized to simplify transactions in hospitals, clinics, pharmacies, and wellness facilities. These payment options are preferred due to their security functionalities that safeguard sensitive health information, as well as for delivering a more seamless payment experience for patients and healthcare professionals.

The retail industry is seeing an increase in mobile payment usage, as individuals utilize smartphones for purchases at supermarkets, convenience shops, and online shopping sites. Retailers gain advantages from incorporating mobile payment options that improve customer convenience, offer loyalty incentives, and enable smooth transactions.

In the hospitality and transport industries, mobile payments are emerging as a favored option for settling hotel reservations, travel services, and transportation costs. Mobile applications allow travelers and residents to conveniently pay for taxi fares, train tickets, and accommodations. The smooth incorporation of mobile payment systems into services such as booking platforms, ride-hailing applications, and hotel reservations improves the overall customer experience and simplifies operations for companies.

Others include a diverse array of uses for mobile payments, such as educational purposes, charity contributions, and government services. People are utilizing mobile payment options for numerous daily transactions, including settling school fees, donating to charity, or paying government-related costs. This extensive sector gains from the increasing approval of mobile payment solutions in numerous fields, providing convenience and accessibility to users in multiple areas of their lives.

Regional Analysis:

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

The Kanto region, which comprises Tokyo and its neighboring regions, represents the biggest and most advanced market for mobile payments in Japan. The dense presence of financial organizations, technology firms, and retail stores aids in the extensive use of mobile payment solutions. The area's infrastructure facilitates advanced mobile payment technologies, and the need for ease in heavily populated urban regions renders it a vital sector in the market.

The Kansai/Kinki region, which includes cities such as Osaka, Kyoto, and Kobe, plays a crucial role in the market. Kansai, being a center for culture and economy, experiences a high demand for mobile payment options. Numerous large retailers and small enterprises in the area are progressively embracing digital payment options to serve tech-savvy customers.

The Central/Chubu region, featuring cities such as Nagoya, is recognized for its robust manufacturing and commercial industries. The area's varied economy, which integrates industrial and service industries, is driving the mobile payments demand.

The Kyushu-Okinawa region, with cities like Fukuoka and Naha, is witnessing higher adoption of mobile payments, especially in urban centers and tourist hotspots. The region benefits from tourism, which drives demand for convenient payment options. Mobile payments are also gaining popularity in local retail businesses, and people are gradually embracing contactless payment methods for everyday transactions.

The Tohoku region, which includes cities like Sendai, is experiencing a shift toward digital payments as younger, tech-savvy people demand convenience. Retailers are gradually integrating mobile payment systems, and the region’s focus on enhancing digital infrastructure is contributing to a steady rise in mobile payment adoption.

The Chugoku region, which comprises Hiroshima and Okayama, is experiencing an increase in mobile payment adoption. Although the area comprises both urban and rural settings, the adoption of mobile payments is increasing in major cities, as people seek more efficient transaction methods.

The Hokkaido region, home to cities such as Sapporo, is demonstrating a growing interest in mobile payment systems, especially in urban centers and tourist hotspots. Hokkaido's distinctive climate and geography affect user habits, as contactless payments are becoming more popular for their convenience of avoiding cash handling in frigid conditions.

The Shikoku region, which encompasses cities such as Matsuyama and Takamatsu, is seeing an uptake of mobile payments. Retailers and service providers in the area are gradually adopting mobile payment options, creating an emerging market sector for mobile payment providers.

Competitive Landscape:

Major participants in the market are concentrating on broadening their presence by establishing strategic alliances with banks, technology firms, and retailers. They are working on improving security aspects, incorporating cutting-edge technologies such as biometrics and encryption, to foster user confidence and guarantee secure transactions. These players are consistently enhancing user experience by innovating mobile payment interfaces, making them easier to use and more efficient. Furthermore, they are progressively concentrating on broadening their services to encompass a greater variety of applications, including loyalty programs, discounts, and smooth cross-border transactions. In 2024, PayPay enhanced its cashless payment options for tourists in Japan, allowing users from 11 countries and areas to pay through QR codes at multiple merchants. This integration features widely used services such as Alipay, Kakao Pay, and GCash, improving convenience for travelers. By facilitating local currency exchanges, it seeks to simplify transactions and enhance Japan's retail economy fueled by tourism.

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

• JCB Co. Ltd.
• Mastercard Inc.
• PayPal Holdings Inc.
• PayPay Corporation
• Rakuten Group Inc.
• Visa Inc.

Latest News and Developments:

• November 2024: PayPay and Alipay+ expanded their collaboration to provide improved e-wallet payment solutions at more than 3 million merchants throughout Japan. This partnership allows global travelers to utilize their favorite mobile wallets for payments through PayPay QR codes, enhancing smooth travel experiences.
• October 2024: JCB Co. Ltd. declared that it had activated Google Pay for its clients in Japan, permitting Android smartphone users to perform contactless payments at stores that accept JCB. Users are able to link JCB credit/debit cards to Google Pay via the Google Wallet application.
• June 2024: Japan's parliament approved a law mandating Apple and Google to permit third-party app stores and payment services on their devices, with the goal of promoting competition and innovation. The legislation requires that these technology giants implement alternative billing methods, allow users to choose default applications, and ensure equal access to device features such as NFC. This shift could positively impact Japan's mobile payments market by promoting more diverse payment options and services.
• April 2023: Yahoo Japan initiated a trial of a biometric facial payment system at a convenience store in Tokyo, enabling customers to make payments via facial recognition connected to their PayPay accounts. Users link their face to their Yahoo Japan ID and then approve payments by merely displaying their face at the cash register. This offers a quick, hands-free shopping experience without needing a smartphone or wallet.

Japan Mobile Payments 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 mobile payments market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the Japan mobile payments 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 mobile payments 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.