Understanding konbini payments in Japan

Japan has a thriving convenience store, or “konbini” culture. Though these stores have only been in Japan since the 1960s, convenience store franchises like FamilyMart, Lawson, and MiniStop are now a common sight in most cities. These stores don’t just sell everyday items – in Japan, they also sell meals and facilitate payments.

“Konbini payments” are a highly popular payment method in Japan. Buyers will go to their nearest convenience store, share an assigned payment code, then pay the full amount in cash. According to a survey conducted in Japan in 2023, around 42 percent of digital buyers aged 15 to 19 had used konbini payments in the past year. That year, konbini payments were the third most popular payment method for online purchases in Japan.

The konbini payment system caters to customers who prefer alternatives to credit cards or digital wallets. This guide offers an overview of konbini payments, their functions, security, and relevance for global merchants operating in or catering to a Japanese audience.

What are konbini payments?

Compared to other regions, Japan remains heavily cash-centric: in 2024, over 60 per cent of transactions were conducted in cash. Konbini payments bridge the “online-offline gap” by allowing consumers to use their cash to complete online purchases. Japan has a high density of convenience stores across urban and rural areas — the number of stores nationwide nearly surpassed 60 thousand in 2024 — making konbini payments highly accessible and inclusive for a Japanese audience.

Customers can pay at participating konbini chains all across Japan, including at major franchises like:

• 7-Eleven
• Lawson
• FamilyMart
• Ministop
• Seicomart

How Konbini payments work

The payment process is simple, with slight differences in the process depending on the convenience store chain. At a 7-Eleven, for example, a buyer might go directly to the cashier to have their payment code scanned. Then, they can pay the requested amount.

But at stores like Lawson, a customer must first scan their payment code at a “Loppi” self-service machine and print out a “ticket”. The cashier then scans this ticket rather than the initial payment code to allow the user to complete their purchase.

• Online purchase: Customers shop for goods on online marketplaces like Amazon or on a brand’s website. When they’re ready to check out, they can select "konbini payment" as their payment option during checkout.
• Payment code issuance: After confirming the order, the website or merchant issues a unique payment code or a printed payment slip. This data will be active for a limited time and can expire.
• In-store payment: Customers take the payment code (via SMS, email, or printout) to a participating konbini and pay using cash.
• Transaction completion: Upon payment, the merchant receives a notification confirming the transaction, and the order can be processed for delivery or service completion.

Relevance of konbini payments in the Japanese Market

Konbini stores are ubiquitous in Japan, typically located in urban, suburban, and rural areas. In 2020, one report estimated that there were 45 convenience stores per 100,000 people in Japan. This widespread network ensures that customers can easily access a nearby store to complete their payments.

Konbini payments are especially suitable for buyers who do not have credit cards and who are not at home during the daytime. A consumer can go to the convenience store during their lunch break, for example, and pay for their product by cash or at a payment kiosk.

How konbini payments serve customers in Japan

Konbini payments offer a flexible solution for a wide range of users, from local shoppers to global merchants targeting Japanese consumers.

• Domestic customers: Konbini payments are preferred by domestic customers who favour cash transactions or find them more convenient. Many Japanese consumers also value the privacy and minimal data exposure associated with using konbini payments.
• International customers: For visitors to Japan making online purchases, konbini payments provide a way to complete transactions without access to local credit cards or banking tools. International merchants catering to Japanese buyers can include this option to expand their reach.

Potential konbini payment use cases for businesses

Konbini payments are ideal for a diverse collection of businesses that you wouldn’t normally associate with the convenience store experience.

1. E-commerce platforms

Offering konbini payments as a checkout option can help attract customers who prefer cash or in-store payment methods.

2. Subscription services

Businesses providing services like gaming, streaming, or digital subscriptions can use konbini payments to enable flexible payment cycles for customers.

3. Event ticketing

Merchants selling event tickets can leverage konbini payments to allow customers to confirm bookings without needing a card.

Accepting konbini payments for merchants

Konbini payments offer several advantages for merchants who are trying to gain a foothold in Japan.

1. Addressing local preferences

Konbini is a widely trusted and accessible payment method in Japan. Merchants who want to tap into Japan’s market segment can appeal to local purchasing behaviours by enabling konbini payments as a payment option.

2. Reduced risk of chargebacks and refunds

Merchants may wait longer to receive funds when customers pay at convenience stores than with cards or QR payments.. But the added effort and steps required to complete such a purchase mean that a buyer is much less likely to cancel their order once they’ve paid. Additionally, because the customer pays in cash, they cannot file a potentially fraudulent chargeback.

3. Secure transaction flow

Konbini payments provide an inherently secure flow, as payment codes are unique and validated at the point of payment. Because each transaction is assigned a unique identifier, businesses can continue to maintain accurate financial records and also analyse customer behaviour.

Challenges and considerations for merchants

Paying for online purchases at the convenience store is massively popular in Japan, but foreign merchants may need time to adjust to the concept. Merchants who are thinking of accepting konbini payments should consider the following challenges.

1. Lengthy waits for payment confirmation

Konbini payments do have an expiration date, but they can remain valid for several days. Merchants will need to wait to pack or ship an order until the payment has been successfully verified.

2. Integration expenses

Because konbini payments are unique to Japan, businesses should carefully consider the steps, cost, and effort of setup. Some jurisdictions may require proper business registration in Japan — with information such as a valid license, local address, and Japanese tax number.

If your business uses a payment gateway like Stripe, you may need to register an active Japanese-based Stripe account to accept payment.

3. Transaction delays

Unlike instant digital transactions, konbini payments may take longer to process. This can extend the timeline for order processing and delivery. Additionally, it can take several business days for your money to be disbursed.

4. Setup challenges

Global merchants can enable konbini payments by working with third-party payment service providers that offer APIs for easy integration. These services bridge the gap between online platforms and convenience stores, ensuring streamlined payment support.

Konbini stores are always innovating to provide better service to customers. The Chinese digital money system Alipay is accepted at many franchise stores, so there may be an option for consumers to complete their konbini payment with Alipay.

If you are not sure how to set up konbini payments, a global payments expert like Antom can provide you with answers.

5. Compatibility requirements

Merchants should ensure their systems are compatible with konbini payment interfaces, particularly if they plan to host their platforms in Japan.

6. Security and privacy requirements

Konbini payments must adhere to local financial regulations, data protection laws, and consumer protection regulations. Merchants who collect customer data will need to pay attention to Japan’s Act on the Protection of Personal Information (APPI), for example.

Security Features

Konbini payments require effort to complete, so they can be more safe — for both merchant and buyer — compared to other payment methods.

1. Unique payment codes

Each transaction generates a unique payment code, ensuring that the payment is tied specifically to the customer’s order.

2. In-person element reduces risks of identity theft

A person trying to commit fraud usually commits identity theft to access someone else’s funds or bank account. However, because konbini payments are cash-based, the risk of fraud or identity theft is lower.

3. In-store authorisation

Payments are completed in person at convenience store counters, adding an extra layer of physical verification. For this reason, konbini payments are less prone to chargebacks than other payment methods like debit cards or credit cards.

4. No sharing of sensitive information

Unlike card-based transactions, konbini payments do not require the sharing of credit card or bank details online.

Connecting to Japan’s cash-based society with konbini payments

Konbini payments are a widely adopted payment solution within Japan, offering convenience, security, and flexibility for customers who prefer cash or alternative methods for online transactions. For merchants operating in the Japanese market, konbini payments provide a localised payment option that aligns with cultural preferences and purchasing habits.

Global businesses can benefit from integrating konbini payments – by doing so, they’re addressing the unique needs of Japanese consumers, increasing customer satisfaction, and expanding their reach in this distinct addressable market.

If you need assistance or aren’t sure whether this method is right for your business, the payment experts at Antom can help.