Japan Payment Gateway Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 2.02 Billion |
| Market Size (2029) | USD 5.74 Billion |
| CAGR (2024 - 2029) | 23.15 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Japan Payment Gateway Market Analysis
The Japan Payment Gateway Market size is estimated at USD 2.02 billion in 2024, and is expected to reach USD 5.74 billion by 2029, growing at a CAGR of 23.15% during the forecast period (2024-2029).
- Several key factors are pushing the growth of Japan's payment gateway market. The swift digitalization of Japan's economy and the surge in e-commerce have heightened the demand for secure online payment solutions. With a notable shift towards online shopping, especially in the wake of the pandemic, businesses are increasingly adopting payment gateways to ensure seamless transactions.
- Also, government initiatives, notably the "Cashless Vision," drive the rise of cashless payments, favoring electronic transactions over conventional cash. This transition is further bolstered by technological advancements in finance, including mobile wallets, QR code payments, and near-field communication (NFC) systems.
- Japan's tech-savvy population, known for its maturity, is leaning more towards convenient payment methods. The rising adoption of online and mobile payments marks this shift. Additionally, the expanding online gaming, entertainment, and subscription services industries further amplify the need for efficient and secure payment gateways.
- In Japan, the smartphone and Internet usage surge has propelled the growth of mobile payments. This momentum has heightened the appeal of digital wallets and hastened the embrace of contactless payment methods. The nation's young, tech-savvy demographic significantly fuels this transition to digital financial services. Additionally, the influx of international payment gateway providers, alongside the emergence of local fintech firms, has heightened competition, driving innovation and expanding options for both businesses and consumers.
- In July 2024, Stripe, a financial infrastructure platform, unveiled a suite of new offerings in Japan aimed at empowering businesses to better engage with consumers and boost local and international revenue. These innovations encompass multi-payment processor capabilities via the Vault and Forward API, flexible consumer payment installments, and bolstered verification measures through Stripe Identity.
- However, navigating regulatory complexities in Japan, particularly the stringent financial and data security laws, presents significant challenges. Additionally, the older generation's limited digital literacy and trust concerns slow down the adoption rate. Small businesses struggle with high operational costs, and in some sectors, traditional cash-based transactions continue to dominate. Together, these challenges hinder the full adoption of digital payment solutions.
Japan Payment Gateway Market Trends
Increased E-commerce Sales and High Internet Penetration Rate
- Japan's payment gateway market is witnessing robust growth, largely driven by a boom in e-commerce sales and heightened internet penetration. As more consumers adopt online shopping, the demand for secure digital payment solutions has surged. This e-commerce expansion, spurred by convenience, a wide array of product offerings, and competitive pricing, has pushed businesses to adopt advanced payment gateways to keep pace with these changing demands.
- In Japan, widespread internet access serves as a major driving force. This extensive internet usage fuels online shopping and accelerates the embrace of mobile payment solutions. With smartphones being the primary means of internet access, the surging popularity of mobile payments and digital wallets highlights the increasing need for advanced payment gateways supporting various transaction methods.
- As per the annual survey by the Ministry of Internal Affairs and Communications (Japan), in 2023, 86.2 percent of people in Japan accessed the internet, marking a slight uptick in the penetration rate from the year prior.
- Also, as more retailers and service providers move online, their reliance on payment gateways intensifies, ensuring customers have smooth and secure payment experiences. According to SurfShark, in the 2023 Digital Quality of Life Index, Japan scored 0.68.
- In May 2024, Rakuten Payment unveiled its strategy to unify its app, Rakuten Pay. Starting in December 2024, the initial phase will see the integration of Rakuten Pay, Rakuten Point card, and Rakuten Edy apps into a single platform. As Japan's point economy evolves, Rakuten Pay is solidifying its position as the entry point to a suite of Rakuten's fintech services.
Retail Sector to Witness the Significant Growth Opportunities
- With the expansion of Japan's retail sector, both in physical and online platforms, there's a notable surge in demand for secure digital payment solutions. This increasing growth pushes businesses to embrace advanced payment gateways, aligning with the rising preference for cashless transactions. Traditional retailers are integrating digital payment systems into their operations to offer consumers more convenience and flexibility. The adoption of contactless payment methods, QR codes, and mobile wallets in stores is becoming more prevalent, driven by the need to streamline transactions and reduce waiting times at checkout.
- Furthermore, retailers are increasingly adopting these technologies, driven by consumer demand for contemporary payment solutions and the Japanese government's initiative towards a cashless society. This trend is propelling growth in Japan's payment gateway market. Consequently, the retail sector's ongoing transformation is intricately tied to the country's rising embrace of payment gateway solutions.
- Japan's retail market is rapidly expanding, driven by urbanization, an extending middle class, and increased consumer spending. Considering these shifts, retailers are overhauling their payment processes, emphasizing convenience and security in digital transactions. At the core of this transformation are payment gateways, enabling secure online and in-store transactions. These gateways support various payment options, including mobile wallets, credit and debit cards, and other digital methods.
- Moreover, the retail sector's e-commerce boom is significantly influential. As online retailers multiply, the demand for versatile payment gateways intensifies. These gateways are expected to offer a variety of transaction methods, integrate effortlessly across platforms, and uphold stringent data security measures. Such capabilities are vital, especially with the increasing online shopping trend among the Japan consumers, particularly the younger, tech-savvy crowd. According to a survey by METI (Japan), in 2023, sales in the Japanese retail industry reached approximately YEN 163 trillion (USD 1.13 trillion), marking the highest figure in the last 15 years.
Japan Payment Gateway Industry Overview
The Japanese payment gateway market exhibits a semi-consolidated structure dominated by a few key players. These leading vendors are increasing investments in regional payment gateways to solidify their presence. Furthermore, the competitive landscape of the Japan Payment Gateway market is influenced by strategic moves, including partnerships, acquisitions, and mergers.
Japan Payment Gateway Market Leaders
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PayPal Holdings, Inc.
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Amazon Pay
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MasterCard
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GooglePay
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Apple Pay
*Disclaimer: Major Players sorted in no particular order
Japan Payment Gateway Market News
- March 2024: Hana Bank partnered with GMO Payment Gateway, Japan's payment processing firm, to introduce a cross-border payment and settlement system. This initiative aims to support domestic companies venturing into the Japanese market. The collaboration would offer Korean businesses a comprehensive suite of services, ranging from expert consulting for business startups and franchise launches in Japan to help transfer e-commerce sales made in Japan.
- March 2024: Sumitomo Mitsui Card Co. Ltd chose NETSTARS Co. Ltd as the code payment gateway for its payment terminals, namely the "stera terminal unit" and "stera terminal mobile." These terminals are utilized by "stera," the payment platform Sumitomo Mitsui Card offers.
Japan Payment Gateway Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
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4.2 Industry Attractiveness - Porter's Five Forces Analysis
- 4.2.1 Bargaining Power of Suppliers
- 4.2.2 Bargaining Power of Buyers
- 4.2.3 Threat of New Entrants
- 4.2.4 Threat of Substitutes
- 4.2.5 Intensity of Competitive Rivalry
- 4.3 Industry Value Chain Analysis
- 4.4 Assessment of Macro Economic Trends on the Cloud Computing Landscape
- 4.5 Impact of COVID-19 on the Market
- 4.6 Regulatory Landscape Analysis
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Increased E-commerce Sales and High Internet Penetration Rate
- 5.1.2 Increased Demand for Mobile-based Payments
- 5.1.3 Growing Adoption of Payment Gateways in Retail
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5.2 Market Challenges
- 5.2.1 Privacy and Security-related Threats Continue to Remain a Concern
6. MARKET SEGMENTATION
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6.1 By Type
- 6.1.1 Hosted
- 6.1.2 Non-Hosted
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6.2 By Enterprise
- 6.2.1 Small and Medium Enterprise (SME)
- 6.2.2 Large Enterprise
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6.3 By End-user
- 6.3.1 Travel
- 6.3.2 Retail
- 6.3.3 BFSI
- 6.3.4 Media and Entertainment
- 6.3.5 Other End Users
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles
- 7.1.1 PayPal Holdings, Inc.
- 7.1.2 Amazon Pay
- 7.1.3 MasterCard
- 7.1.4 GooglePay
- 7.1.5 Apple Pay
- 7.1.6 GMO Payment Gateway
- 7.1.7 NETSTARS CO., LTD
- 7.1.8 Rakuten Group, Inc
- 7.1.9 Stripe, Inc.
- *List Not Exhaustive
8. ANALYST RANKING OF PAYMENT GATEWAYS IN KSA
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
10. ABOUT US
** Subject To AvailablityJapan Payment Gateway Industry Segmentation
Retailers leverage payment gateways to enable customer purchases using debit or credit cards. An online payment gateway primarily authorizes financial transactions between retailers and their clientele. This technology is crucial in online shopping, guaranteeing seamless transaction approvals between sellers and buyers.
The Japanese payment gateway market is segmented by type (hosted, non-hosted), enterprise (small and medium enterprise (SME), large enterprise), and end-user (travel, retail, BFSI, media and entertainment, and other end users). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Type | Hosted |
| Non-Hosted | |
| By Enterprise | Small and Medium Enterprise (SME) |
| Large Enterprise | |
| By End-user | Travel |
| Retail | |
| BFSI | |
| Media and Entertainment | |
| Other End Users |
Japan Payment Gateway Market Research FAQs
How big is the Japan Payment Gateway Market?
The Japan Payment Gateway Market size is expected to reach USD 2.02 billion in 2024 and grow at a CAGR of 23.15% to reach USD 5.74 billion by 2029.
What is the current Japan Payment Gateway Market size?
In 2024, the Japan Payment Gateway Market size is expected to reach USD 2.02 billion.
Who are the key players in Japan Payment Gateway Market?
PayPal Holdings, Inc., Amazon Pay, MasterCard, GooglePay and Apple Pay are the major companies operating in the Japan Payment Gateway Market.
What years does this Japan Payment Gateway Market cover, and what was the market size in 2023?
In 2023, the Japan Payment Gateway Market size was estimated at USD 1.55 billion. The report covers the Japan Payment Gateway Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Japan Payment Gateway Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Japan Payment Gateway Industry Report
Statistics for the 2024 Japan Payment Gateway market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Japan Payment Gateway analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
