Cards gain traction in cash-heavy Japan

Total card payments value will hit over $750b by 2022, according to analysts.

Although cash still dominates payments in Japan, the share of cash transactions in total payments is expected to drop from 76.2% in 2018 to 71.4% in 2022 as the country makes progress on its cashless ambitions, according to GlobalData.

Also read: Japanese banks join cashless revolution in digital shift

Total card payments value rose from $428.1b (JPY47.0t) in 2014 to $587.6b (JPY64.5t) in 2018 and is poised to hit $752.6b (JPY82.6t) by 2022. "Expanding payment infrastructure, rising card acceptance among SMEs, and the government’s focus on non-cash transactions are expected to support the growth of the payment cards market," Nikhil Reddy, Payments Analyst at GlobalData said in a report.

Japan is aiming to achieve a cashless payment ratio of at least 40% by 2025. To achieve this goal, the government has embarked on a series of initiatives including standardising QR code payments and introducing cashless payments at self-service kiosks.

Many ATMs are also being installed at locations with high footfalls, such as tourist attractions and supermarkets. Restaurants, souvenir shops and popular tourist spots are gradually embracing point-of-sale (POS) terminals. Retail chain Aeon also announced plans to install 100,000 contactless POS terminals by 2020.

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