Consumer Behavior
Japanese consumers shifting from cash to electronic payments
August 14, 2020
Japan is experiencing a digital growth shift in regard to consumer spending, with shoppers moving from cash payment to card payment.
That's a top finding from a GlobalData forecast that revealed card payments in Japan growing an estimated 2.1% in 2020, according to a press release.
In in June 2020, 7-Eleven in Japan made contactless card acceptance available at all its stores, giving customers the ability to use contactless payment with debit, credit or prepaid cards from major card brands such as Visa, Mastercard, JCB, American Express and Diners Club. In July 2020, Sumitomo Mitsui Card issuers made payments easier for merchants, including small businesses, by introducing faster merchant payment cycles, paying merchants in just five days, compared to a month or more in the past, according to the release.
"Japan has been traditionally a cash-based country, with cash accounting for 73.3% of the overall payment volume in 2019," Ravi Sharma, lead banking and payments analyst at GlobalData, said in the release. "While cash will continue to be the dominant payment mode, expanding payment infrastructure, rising card acceptance among SMEs, and the growing consumer preference for non-cash transactions due to COVID-19 will accelerate the adoption of electronic payments over the next five years."
