Selling to consumers in Japan? Here’s what you need to know

Japan has long held a reputation as a global technology pioneer, especially when it comes to enhancing everyday consumer experiences. From robot hotel staff to self-checkout retail machines, the country has embraced digital innovation early and with enthusiasm.

But compared to its counterpart markets in the Asia-Pacific region — where digital payments have rapidly overtaken traditional methods — Japan has taken a distinctively hybrid approach.

The country’s early integration of new tech into the consumer experience means these technologies were designed to accommodate traditional payment methods, like cash and credit cards. As a result, these methods continue to dominate the country’s payments landscape, even as they see declining usage elsewhere in the region.

This ongoing preference for traditional payment methods is embedded in Japan’s infrastructure. Self-checkout machines and self-order kiosks, while highly automated, continue to support coins, notes, and credit card swipes. The popular konbini (convenience store) payment method allows consumers to pay for online purchases in cash as well.

Even online, traditional credit cards dominate as the most preferred payment method. Japanese consumers also tend to hold multiple cards, especially those from local provider JCB, which offers attractive perks through co-branded cards — 46% of cardholders own three or more.

Still, opportunities for innovation remain, particularly in reducing friction where traditional processes fall short.

E-wallet providers have stepped in with smart solutions: PayPay grew rapidly through generous consumer cashbacks and zero handling fees for merchants; Antom streamlined konbini payments with QR scanning; and Rakuten simplified credit card applications to appeal to international residents.

Meanwhile, the government continues to nudge consumers towards digital payment adoption, with initiatives like enabling wage payments through e-wallets.

These developments reflect an evolving ecosystem that balances innovation with consumer familiarity, enabling Japan to gradually modernise its payment landscape without disrupting the trust and convenience of traditional methods.

Market overview of Japan: Where tradition meets tech-driven commerce 

GDP and demographics

In 2023, Japan ranked as the world's fourth biggest economy, with its GDP at $4.21 trillion and its per capita GDP at $33,834.

Japan’s population of 125 million exhibits a relatively balanced ratio of women to men, with a slight skew in favour of women. More than half (58%) of the population are of working age, defined as 15 to 64 years old. However, the country faces a population aging issue, with a top-heavy population pyramid reshaping demands on the workforce and social support systems.

Economic drivers

The service industry is Japan's biggest sector. Japan is also a major player in global trade, ranking among the world’s top importers and exporters. Japan's import value reached $785.61 billion in 2023, with China emerging as Japan’s leading import partner, supplying 22.2% of all imported goods that year.

Japan boasts one of the lowest unemployment rates among world's largest economies.

Thanks to constant labour demand from Japan's automotive, consumer electronics, and high-tech product industries, the country’s unemployment rate in 2023 was only 2.58%.

Consumer and payment trends

The country’s e-commerce market has shown consistent growth in recent years. In 2023, the number of Japanese e-commerce users exceeded 72 million — a figure that’s expected to hit 93.9 million by 2029. A Statista forecast expects Japan’s e-commerce market to grow at a compound annual growth rate (CAGR) of 9.23% from 2024 to 2029.

Japan's penetration rate of debit cards is 89%, and that of credit cards is 76% – the latter being the highest in the Asia Pacific region.

Japanese consumers are used to versatility in payment options. Konbini payments and self-checkout machines allow consumers to pay the way they want — from cash and cards to e-wallets and bank transfers.

Consumer trends: How Japan buys, clicks, and consumes

A confluence of economic trends suggests Japan is entering a new phase of robust and balanced growth.

According to the Bank of Japan (BOJ), Japan's GDP grew by 2.13% in the second quarter of 2024. In 2024, Japan's economy experienced further good news — the BOJ’s decision to end eight years of negative interest rates marked the conclusion of the nation's prolonged deflationary period, coinciding with inflation hitting the BOJ’s 2% target.

Notably, large enterprises like Toyota gave the largest pay increases in 30 years, significantly raising salary levels, consumer confidence, and spending capacity.

If this positive economic momentum continues, consumer spending is likely to rise – opening up new opportunities for businesses and retailers.

Physical retail

Retail is a major pillar of Japan’s economy, accounting for over 10% of national GDP. Its sustained growth in recent years has been fuelled by tech innovation, supply chain development, and changing shopping habits.

Physical stores, especially convenience stores, remain the dominant retail channel — their extensive networks efficiently cater to consumers' demand for quick and efficient shopping experiences. Meanwhile, large retail companies, such as shopping malls and department stores, lean toward optimising non-food categories.

A Statista report finds that Japan's retail market achieved record-breaking sales of JPY 163 trillion (approx. $1.16 trillion) in 2023 — the highest level in 15 years.

E-commerce

Thanks to its advanced internet infrastructure, efficient logistics systems, and mature consumer base, Japan’s e-commerce market is evolving at a rapid pace.

More brands are launching online shopping platforms to meet growing consumer demand for seamless, omnichannel shopping experiences. Mobile commerce, in particular, shows significant potential, reflecting the strong preference of Japanese consumers for smartphone-based shopping.

Additionally, the rise of influencer marketing and social media has accelerated the growth of social commerce, enabling e-commerce enterprises to explore new avenues for profit.

In 2023, the number of e-commerce users in Japan reached 72 million, with a penetration rate of 69.2%, second only to China in Asia Pacific. The numbers are expected to reach 93.9 million and 87.3% by 2029. 

In 2023, Japan’s e-commerce market brought in $151 billion, and it's on track to grow to $193.4 billion by 2025. By the same year, average spending per user is forecasted to hit $2,600.

According to statistics from Japan's Ministry of Economics, Trade and Industry, the country’s B2C e-commerce market size and e-commercialisation rate have been consistently growing over the past ten years. However, Japan's e-commercialisation rate stood at only 9.38% in 2023, significantly lower than China's 31% in 2022. This gap highlights the untapped potential of Japan's e-commerce market.

Japan's online shoppers

Most of Japan’s online shoppers – almost 80% – are under 54, and women just edge out men in buyer numbers. Middle-aged and older consumers now make up the largest share of online shoppers.

A 2024 survey found that 28.3% of respondents shop online two to three times per month. Weekly e-commerce events are also popular. These purchases are increasingly taking place on mobile devices — over 50% of the e-commerce traffic in Japan comes from smartphones.

Motivations and concerns in online shopping

Free delivery and discounts are the top two factors driving Japanese consumers to shop online. Additionally, 45% of consumers believe that self-checkout is the key in improving the shopping experience.

 A 2024 survey revealed that, beyond price and quality, payment security is a significant concern for Japanese consumers.

The most popular e-commerce purchases in Japan include clothing and accessories, daily essentials, and books and magazines.

Additionally, 39% of consumers research online before making major purchases, 37% find customer reviews valuable, and 31% rely on electronic devices to manage recurring orders.

Digital behaviour

According to DataReportal, the number of internet users in Japan reached 104 million at the beginning of 2024, with a penetration rate of 84.9%. Statista forecasts that this figure will remain steady in the coming years.

In the past few years, the increasing number of smartphone users has driven the mobile internet penetration rate to a remarkable 93.13%.

How are these internet users spending their time online?

In the third quarter of 2023, Japanese internet users spent approximately 236 minutes online daily, with a significant portion spent watching TV (both broadcast and streaming).

They are also spending their time online to pay for online and in-store purchases, as well as offline services.

In 2023, the penetration rate of digital payments reached 65.4%, with transaction value exceeding $353.7 billion. This makes Japan the fourth-largest digital payments market globally.

Payment preferences in Japan: A cashless future in progress

While cash continues to be the preferred payment method for most Japanese consumers, Japan's Ministry of Economy, Trade, and Industry aims to increase the share of cashless transactions to 40% by 2025. As of 2023, cashless payments in Japan comprised 39.3% of total transactions.

With the Japanese government's continued efforts to promote digital payments, the number of users has steadily increased in recent years. By 2025, the number of digital payment users is projected to exceed 90.65 million, with a penetration rate of 73.12%. The value of transactions via digital payments is expected to surpass $447.5 billion, with a CAGR of 8.44% from 2024 to 2028. 

Data from Statista suggests that Japanese consumers are drawn to digital payments for their speed, simplicity, and the added benefits of earning credits or discounts. Additionally, digital payments offer convenience, saving time and reducing the need for manual processing.

Credit cards and debit cards

Credit cards are the most popular digital payment method in Japan.

 The transaction value of credit cards in Japan exceeded JPY 91.65 trillion (approx. $652.26 billion) in 2023, while debit card transactions reached JPY 3.84 trillion (approx. $27.33 billion). In 2023, the transaction volume of debit cards in Japan grew by 17.4% year-on-year. 

Cards from local issuer JCB dominate the market, followed by Visa and Mastercard.

The MMD Labo survey in 2024 revealed that Rakuten cards are the most popular credit cards in Japan. The lineup of Rakuten-branded cards includes cards issued by JCB, Visa, Mastercard, and American Express.

Japanese consumers tend to be cautious about accumulating credit card debt. Many prefer to settle their balances in full the following month, even when other instalment options are available.

Cash

Cash remains vital for daily transactions in Japan, the go-to payment method for in-person purchases especially for small businesses and rural areas. 

In 2024, Japan's MMD Labo conducted a survey of 25,000 Japanese consumers aged 18 to 69, revealing that cash remains the most prevalent payment method.

This enduring preference for cash may boil down to deep-rooted trust in hard currency, cultural habits, and practical accessibility. Older generations, in particular, tend to place more trust in banks and physical currency than in digital alternatives.

For many seniors — especially those in rural areas or without digital support — cash remains the most convenient and familiar option. Cultural values also contribute to a slower adoption of cashless payment methods among this group.

This may also explain the prevalence of cash on delivery (COD) as a longstanding payment method in Japan’s e-commerce landscape. COD allows customers to pay — either in cash or by credit card (despite the method’s name) — only when the package is delivered. This allows buyers to inspect their purchases before completing the transaction.

This approach offers a sense of security and appeals especially to those hesitant about using digital payments. According to the Statistics Bureau of Japan, around 17.8% of online shoppers choose this option, with the highest usage seen among individuals aged 70 to 79, who make up 29.8% of COD users.

Konbini payments

Konbini payments are a local payment method that combines online purchases and offline payments. After making an online purchase, consumers can pay via konbini, which allows them to complete their transaction at one of over 56,000 convenience stores located throughout Japan.

This method is simple, intuitive, and particularly appealing to consumers who prefer paying with cash — contributing to its widespread popularity.  

According to 2024 statistics, 47.3% of Japanese consumers visit convenience stores at least once a week, with 4.5% visiting nearly every day. A 2011 survey found that the frequency of visits to convenience stores has remained relatively stable, indicating that Japanese consumers consistently accept and rely on this payment method.

Based on Antom's experience in Japan, many e-commerce platforms initially believed that konbini payments — combining online purchases and offline payments — would negatively impact payment success rates. As a result, some platforms adjusted the placement of konbini payments, moving them lower in the payment options list or hiding them behind an additional click. However, the data shows that the number of konbini payment users remains stable, regardless of its position on the list. 

Digital wallets

Japan has introduced JPQR to accelerate the adoption of digital wallets, a system set to be supported by payment infrastructures in other Southeast Asian countries by 2025.

In recent years, Japanese merchants have also begun accepting digital wallets from other countries, such as Alipay, to attract international travellers. Digital wallets offer consumers the convenience of upfront payments, as they can be linked directly to bank accounts or credit cards. 

Statista's data shows a dramatic increase in the number of active digital wallet users in Japan, rising from 3.55 million in 2018 to 75.57 million in 2023. This surge indicates that digital wallets are widely accepted by Japanese consumers and hold significant growth potential.

Among the variety of digital wallets available in Japan, PayPay led Japan’s digital wallet market in 2022 by a wide margin, recording a transaction value of JPY 7.9 trillion (approximately $56.22 billion), outpacing other major digital wallet platforms. By 2024, it had gained over 66 million users — more than half of Japan’s population. Among the country’s 98 million smartphone users, two out of three use PayPay, solidifying its position as Japan’s most widely adopted digital wallet.

A key driver of PayPay’s success lies in its strategic focus on physical retailers. By building strong relationships with brick-and-mortar merchants, it has made in-store payments the primary use case for digital wallets in Japan. 

PayPay has also strengthened its ecosystem through key integrations. It works with the widely used LINE messaging app, and has absorbed LINE Pay Japan, which ceased  operations on 30 April 2025.

Antom has formed a strong alliance with PayPay, offering international merchants an end-to-end digital wallet and payment solution tailored for the Japanese market.

Bank transfers

Known for their safety, accuracy, and real-time confirmation, bank transfers are widely used across all age groups in Japan for paying bills, purchasing goods, and transferring funds between individual accounts.

Increasingly, Japanese consumers are opting for internet and mobile banking services to facilitate these transactions. However, a significant portion of Japanese consumers still prefer making offline bank transfers for e-commerce purchases, typically at bank counters or ATMs. 

One popular service is Pay-easy, a bank transfer system that allows consumers to pay bills via online banking or ATMs.

Pay-easy has begun partnering with international payment platforms to help global sellers integrate and use its services. In 2023, Pay-easy transactions via online banking reached 2.30 million, with a total value of JPY 55.43 trillion (approx. $394.49 billion).

Other payment methods

Suica and other IC cards: Prepaid cards called IC cards, or “integrated circuit” cards, are used for small purchases such as public transportation fares, vending machines, and convenience store items. In 2023, IC cards accounted for 1% of e-commerce transactions and 3% of POS transactions. These percentages are expected to stay mostly the same in 2027.

The most popular IC card in Japan is Suica (Super Urban Intelligent Card). As of October 2023, over 95 million SUICA cards have been issued, with SUICA payments accepted in over 1.63 million stores across Japan.

Carrier billing: This payment method enables consumers to charge their purchases directly to their mobile phone bills, without the need to link a debit or credit card. It's particularly convenient for mobile-based online shopping. Statistics show that around 16.2% of Japanese online consumers use carrier billing, with users spanning all age groups and income levels.

Accepting payments from Japan consumers: Flexibility is key

Japan presents a unique payments landscape in the Asia-Pacific region — one that balances deep-rooted preferences for cash and credit cards with the steady rise of digital alternatives.

Unlike many of its regional counterparts that have rapidly embraced digital wallets and QR-based systems, Japan’s approach remains predominantly hybrid. Cash still holds cultural and practical value, and credit cards maintain a strong presence for both domestic and global transactions.

Japan is catching up nonetheless. Cashless adoption is on the rise, with digital payments gaining traction among consumers of all ages. Konbini payments continue to be widely used, especially for online and cross-border transactions and bill payments. Their appeal lies in simplicity and perceived safety, as they eliminate the need to share sensitive banking or credit card details.

Japan was one of the earliest adopters of credit card payments in the developed world, and today, most Japanese-issued bank cards are globally accepted. This foundation supports both domestic transactions and international commerce, which is increasingly enabled by partnerships with global platforms. 

Antom leverages the Alipay+ ecosystem. Through Alipay+, Japanese merchants can now accept cross-border payments from international digital wallets: an important step toward catering to tourists and global shoppers.

Flexibility will be required of merchants looking to succeed in this evolving market: embracing a broad mix of payment options (including cashless, credit, konbini, and cross-border digital wallets) will be crucial for capturing consumer trust and meeting the diverse expectations of Japanese shoppers.

How Antom can help you with payments in Japan

Antom provides a convenient and flexible option for global merchants to offer the most popular digital wallets, mainstream konbini payments, and bank transfer services from leading banks in Japan.

PayPay integration: Antom has developed a solid partnership with PayPay, the most popular digital wallet brand in Japan with over 66 million users — more than half of the country's population.

Konbini acceptance: Antom supports 100% of the major konbini payment methods in Japan, including those from 7-Eleven and FamilyMart. Additionally, Antom has streamlined the konbini payment workflow, making the process more efficient.

Furthermore, Antom facilitates integration with Pay-easy, a bank transfer service that enables seamless transfers between Japan's top banks.

By integrating Antom, merchants gain access to Japan’s top payment services — boosting reach, enhancing user experience, and simplifying transaction processes.