Japan's Cards and Payments Industry: Emerging Opportunities, Trends, Size, Drivers, Strategies, Products and Competitive Landscape

Japan's Cards and Payments Industry: Emerging Opportunities, Trends, Size, Drivers, Strategies, Products and Competitive Landscape

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During the review period, the number of cards in circulation in the channel increased at a compound annual growth rate (CAGR) of 2.94% to reach 980.9 million cards in 2013, while its value recorded a review-period CAGR of 3.45%, reaching JPY70.1 trillion (US$723.4 billion) in 2013.
The Japanese card payments channel was mainly driven by strong growth in the prepaid cards category, which registered the highest review-period CAGR of 12.68%. The share of prepaid cards category in overall card payments channel increased from 15.9% in 2009 to 22.9% in 2013. In terms of number of cards in circulation, prepaid cards increased from 139.3 million in 2009 to 224.5 million in 2013. The charge cards category recorded the second-highest review-period CAGR of 2.55%, increasing from 7.4 million cards in 2009 to 8.2 million in 2013. The debit cards category registered the slowest growth during the review period, at a CAGR of 0.46%, increasing from 412.0 million cards in 2009 to 419.7 million in 2013.
In 2009, non-cash payments in Japan were dominated by credit transfers with a total transaction value of JPY2,433.9 trillion (US$26.0 trillion), while card payments valued JPY61.2 trillion (US$654.1 billion). During the review period, card payments recorded a CAGR of 3.45%, to value JPY70.1 trillion (US$723.4 billion) in 2013, while credit transfers recorded a CAGR of 3.73%, to value JPY2,817.7 trillion (US$29.1 trillion) in 2013. Internet penetration growth and rising disposable incomes, supported by an increased consumer spending, resulted in increased online retail sales. The country's domestic business-to-business (B2B) e commerce grew to JPY262.0 trillion (US$3.3 trillion) in 2012, an increase of 101.7% compared to the previous year. Similarly, business-to-consumer (B2C) e-commerce increased by 112.5%, to reach JPY9.5 trillion (US$119.1 billion) in 2012.

Report Highlights
  • During the review period, the number of cards in circulation in the channel increased at a compound annual growth rate (CAGR) of 2.94% to reach 980.9 million cards in 2013, while its value recorded a review-period CAGR of 3.45%, reaching JPY70.1 trillion (US$723.4 billion) in 2013.
  • The Japanese card payments channel was mainly driven by strong growth in the prepaid cards category, which registered the highest review-period CAGR of 12.68%. The share of prepaid cards category in overall card payments channel increased from 15.9% in 2009 to 22.9% in 2013. In terms of number of cards in circulation, prepaid cards increased from 139.3 million in 2009 to 224.5 million in 2013. The charge cards category recorded the second-highest review-period CAGR of 2.55%, increasing from 7.4 million cards in 2009 to 8.2 million in 2013.
  • Consumers are moving to prepaid and postpaid e-money purses incorporated into payment cards and mobile phones to make fast and secure contactless transactions, both at point-of-sale (POS) terminals and online. During the review period, the transaction value of prepaid cards increased at a CAGR of 21.76%, from JPY1.3 trillion (US$14.2 billion) in 2009 to JPY2.9 trillion (US$30.1 billion) in 2013. Sony developed the chip for Japan's e-money platform which is now used in payment cards and mobile phones.
  • Internet penetration growth and rising disposable incomes, supported by an increased consumer spending, resulted in increased online retail sales. The country's domestic business-to-business (B2B) e commerce grew to JPY262.0 trillion (US$3.3 trillion) in 2012, an increase of 101.7% compared to the previous year. Similarly, business-to-consumer (B2C) e-commerce increased by 112.5%, to reach JPY9.5 trillion (US$119.1 billion) in 2012.
Report Scope
  • This report provides a comprehensive analysis of Japan's cards and payments industry.
  • It provides current values for Japan's cards and payments industry for 2013, and forecast figures for 2018.
  • It details the different economic, infrastructural and business drivers affecting Japan's cards and payments industry.
  • It outlines the current regulatory framework in the industry.
  • It details the marketing strategies used by various banks and other institutions.
  • It profiles the major banks in Japan's cards and payments industry.
Reasons to Get this Report
  • Make strategic business decisions using top-level historic and forecast market data related to Japan's cards and payments industry and each market within it.
  • Understand the key market trends and growth opportunities within Japan's cards and payments industry.
  • Assess the competitive dynamics in Japan's cards and payments industry.
  • Gain insights in to the marketing strategies used for selling various card types in Japan.
  • Gain insights into key regulations governing Japan's cards and payments industry.


Table of Contents

1 Executive Summary
2 Analysis of Market Environment, Key Trends and Drivers
2.1 Payment Infrastructure and Emerging Technologies
2.1.1 Automatic Teller Machines (ATMs)
2.1.2 Point of sale (POS) terminals
2.1.3 Internet penetration
2.1.4 Contactless payments
2.1.5 Mobile payments
2.2 Business Drivers
2.2.1 Growth in retail industry
2.2.2 Rising online retailing
2.3 Economic Drivers
2.3.1 Stable GDP
2.3.2 Increasing GDP per capita income
2.3.3 Low unemployment rate
3 Cards and Payments Industry Share Analysis
3.1 Industry Overview
3.1.1 Cash
3.1.2 Checks
3.1.3 Card payments
3.1.4 Credit transfers
4 Regulatory Framework and Card Fraud Statistics
4.1 Regulatory Framework
4.1.1 Foreign direct investment (FDI) regulations
4.2 Card Fraud Statistics
4.2.1 Cards-not-present fraud
4.2.2 Counterfeit cards
4.2.3 Cards lost or stolen
4.2.4 Card ID theft
5 Emerging Consumer Attitudes and Trends
5.1 Industry Segmentation and Targeting
5.1.1 Retail segment
5.1.2 Corporate segment
5.2 Travel and Tourism Spending
5.2.1 Outbound tourist trips
5.2.2 Outbound tourist spending
5.3 Retail Card Spending
5.3.1 Analysis by product category
5.3.2 Analysis by retail channel share
6 Analysis of Card Payments and Growth Prospects
6.1 Channel Share Analysis by Card Category
6.2 Size and Forecast of the Card Payments Channel
6.2.1 Analysis by number of cards in circulation
6.2.2 Analysis by transaction value
7 Analysis of Credit Card Payments and Growth Prospects
7.1 Overall Category Size and Forecast
7.1.1 Analysis by number of cards in circulation
7.1.2 Analysis by transaction value
7.1.3 Analysis by transaction volume
7.2 Transaction Share Analysis by Channel
7.2.1 Analysis by transaction value
7.2.2 Analysis by transaction volume


Companies Mentioned:

Shinsei Bank
Japan Post Bank
Citibank Japan
Credit Saison
JACCS
MasterCard
Visa
American Express
JCB