Market Size of Japan Mobile Payments Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 211.13 Billion |
| Market Size (2029) | USD 815.79 Billion |
| CAGR (2024 - 2029) | 31.04 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Japan Mobile Payments Market Analysis
The Japan Mobile Payments Market size is estimated at USD 211.13 billion in 2024, and is expected to reach USD 815.79 billion by 2029, growing at a CAGR of 31.04% during the forecast period (2024-2029).
The population of Japan is known for being early technology adopters. They are eager participants in modern eCommerce, as well as an inventor of two key cashless payments technologies Near field communication (NFC) and QR Codes. The first-ever mobile wallet was also launched in Japan two decades ago.
- Moreover, The ease of payment with contactless-enabled cards led to an increase in the total spending behavior of users and increased use of the card compared to the non-contactless-enabled card. However, activating mobile wallets had a far deeper impact on overall spending. The pandemic accelerated the transition toward contactless payment with the rapid adoption of mobile payments. Further, the usage of contactless payments was incredibly high in restaurants and quick-service restaurants.
- The payments business is witnessing unprecedented change. New payment solution companies compete with incumbents for market share and use technology to disrupt traditional networks and business models across retail and wholesale payments. On the other hand, regulations are increasing, and payment platforms and market infrastructures are consolidating, renewing, and re-designing.
- To be sure, the mobile phone applications that offer payment services continue to face danger from data privacy. To increase the security and dependability of their policies, businesses are always looking for quicker and safer solutions to identify the identities of their customers. Some companies are eager to integrate official papers, such as driver's licenses, etc., to authenticate users and prevent fictitious or fraudulent accounts. These actions are enhancing mobile payments.
- After COVID-19, it was anticipated that acceptance of digital payment methods would increase and become more significant over time. Governments and regulatory agencies forbid currency usage because it is thought to be a possible virus carrier. For instance, since the government imposed a lockdown, cash usage in Japan decreased by half, and stores that sold necessities avoided cash transactions.
