Olympics, improving economy to push Japan card payments up by 9.5% | Asian Banking & Finance - The Latest News, Headlines, Insight, Commentary & Analysis
1 view

Olympics, improving economy to push Japan card payments up by 9.5%

Card payments in Japan are expected to reach $1.1t by 2024.

The improvement in consumer spending and the upcoming Summer Olympics are set to push Japan’s card payments to rise by 9.5% in 2021, forecasts data and analytics company GlobalData.

All signs point to a rebound in the use of the plastic for payments, with the reopening of the Japan’s economy, government measures encouraging electronic payments, the easing of travel restrictions, and the upcoming Tokyo Olympics.

“The upcoming Olympics and Paralympics slated for July and August 2021, respectively, are expected to provide an impetus to the country’s payments industry,” notes Kartik Challa, banking and payments senior analyst, GlobalData.

Overall, GlobalData expects card payments to register a compound annual growth rate (CAGR) of 8.3% between 2020 and 2024 and total $1.1t (JPY110.2t) in three years’ time.

“Whilst the Japan’s payment landscape has traditionally been dominated by cash, government initiatives to promote electronic payments and an improving payment infrastructure will drive the growth of the payment card market,” Challa noted.

Card use has already been given a massive push thanks to the local government’s reward program ‘My Na Point’ that was launched in September last year and just recently ended this March. It offered consumers reward points worth up to JPY5,000 ($48.4) on their purchases made using digital payments such as debit card, credit card and prepaid card.

Meanwhile, all the country’s major banks and payment participants are reportedly making their payment infrastructure compatible with foreign-issued cards and installing POS terminals at locations with high footfall, such as tourist attractions and supermarkets.

Card issuers are also noted to be working on pushing contactless adoption and encouraging consumers to shift away from cash. For instance, AEON Card, in collaboration Visa, plans to roll out around 10 million contactless cards by the end of 2021 and enable contactless feature in 100,000 cash registers across 16,700 stores including AEON, AEON MALL, Maruetsu, Welcia, and My Basket.

Get Asian Banking & Finance - The Latest News, Headlines, Insight, Commentary & Analysis in your inbox
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Banks have to remain consistent and continuous in testing best practices.
Shares were priced at the top end, at KRW39,000 ($34).
In January, 1.2 million transactions were carried out via the SGQR.
Its launch will require legal changes to the nation’s foreign exchange and IT rules.
But less than half of consumers are impressed with the digital financial services currently offered.
Treasury teams can mobilize liquidity and fund intraday payments in real-time.
Customers have the option to pay their tax balances in full or partially.
About 750 new accounts have been opened in four APAC markets through the new portal.
UnionDigital will be a wholly-owned subsidiary of the Philippine lender.
SmartStream’s Peter Hainz and Amazon Web Services’ Anna Green shared their insights on the advantages of on-demand and highly scalable cloud environments for banks and other financial institutions, as well as the factors hindering its adoption in the region.
This August, the Asian Banking & Finance and SAP will provide insights on the evolving landscape for ESG in financial services.
Thirteen lenders noted that demand was moderately weaker than the preceding 3-month period.
Investors will likely seek signs that private lenders will be able to step up lending once COVID subsides.
It opens up new revenue models and lowers the cost-to-serve.