Everyone’s vision for “The Land of the Rising Sun” is distinctive from others. Whilst some of us dream of cherry blossoms and Mount Fuji behind, the others are interested in wacky karaoke, manga, and delicious ramens. We all agree on one thing that Japan has always had the cutting-edge technology of its time no matter if it was the period of gallant Shoguns or the 21st century. Being the mecca of technological innovation, this compelling country has given us hundreds of inventions; bullet trains, QR codes, cassette players, blue Led, and many others. With its densely populated nation of almost 130 million citizens, the Japanese market is a tremendous platform open to various opportunities. But the curious case is that Japan has one of the lowest cross-border shopping rates which is attributed to cultural differences in online shopping experiences. What makes it so conservative when it comes to international payments? Or in other words, how to integrate into this thriving market? The key is to be closely acquainted with payment methods and practices in Japan.
Although the Japanese market has great potential, the cultural norms are iron shielded against the outside world. The online expectations of Japanese consumers are generally higher compared to the European Market. According to the aspect of functional and hassle-free online payments, the Japanese are pretty conservative. Actually, there are some statements to shape your view about current Japanese culture. These anecdotes may help you to comprehend this unique country with consumer habits.
- 99% of Japan’s population only speaks Japanese and this is a significant requirement for those merchants who are considering expanding their business in Japan. eCommerce page layout must be optimized for the Japanese language as well as placement of Japanese Yen as a payment currency.
- Japanese are mostly inclined to use the liquid currency. Japanese rate of utilising credit card payment method is only at 14% whilst French have already dematerialised 59% of their any kind of payments.
- It is another thing going beyond the ordinary fact that the Japanese population has smartphone penetration compared to other developed nations at 55%. Adding this data to the high usage of desktops due to the high aging population, it can be a wise decision to design web pages compatible with desktops rather than smartphones.
- When it comes to B2C, Japan’s mobile commerce is 24.4% of all B2C commerce. Obviously, this is also correlated to the low percentage of mobile utilization.
What are the Different Types of Payment Methods in Japan?
According to age, gender, economic status, and lifestyles, the most popular payment methods in Japan may vary. Here, we have listed Japan’s preferred payment methods for you below:
Just like its western counterparts, credit cards are widely used in Japan. Being a reflection of the age demographic in the country, Japanese online shoppers over the age of 40 are more likely to purchase via credit cards. Popular credit cards are Visa, MasterCard, and JCB (Japan Credit Bureau) which is a Japan-based payment brand boasting more than 80 million users in more than 200 countries around the globe.
Another Japan-originated bank and credit card company is a well-known internet company, Rakuten’s “Rakuten Bank” which also has its cryptocurrency, the “Rakuten Super Point”. The Rakuten Bank offers a plethora of advantages to its customers including cashback on holidays, flight miles, reasonable installments, and “Pay with crypto” option.
Digital Wallets in Japan
Japan is apt to go digitized just like all countries worldwide. Therefore, mobile wallets come to mind to ease billions of dollars in transactions in the first place. Leading digital wallets in Japan are PayPal, PayPay, Apple Pay, Rakuten, LinePay, and others whereas QR code payment systems via online wallets are catching on recently. Considering the invincible convenience of both online and cashless on-the-counter payments via e-wallets, plus being caught flat-footed by Covid-19, it would not be a misestimation to say that these functional ways of payments will reach the peak future and take its permanent place in pie charts after liquid and credit cards in Japan.
Konbinis are Japanese-style post-purchase proximity payments which enable consumers to make final redemptions through Konbini stores, the post offices, ATMs, and Bank Transfers. The process is downhill. It is possible to shop, pay bills, buy public transportation tickets, theatre and concerts. Konbini users can pay by showing their ID in a Konbini payment terminal within six days after the transaction. The method is mostly utilised by senior citizens and youngsters who are underage to create a bank account.
Cryptocurrency Payment Methods in Japan
Japan’s society adores cryptocurrency and trading them has become one of the most popular endeavors, especially among the rising generation. In addition to the familiarity of financial regulators with blockchain technology and NFTs, it is not surprising to see Japan leapfrogging and going straight to blockchains. Yet already, various e-commerce sites allocate cryptocurrency payment gateways in Japan.
Konnichiwa, Nihon! Yokoso!!!
Salute to spectacular Japan with its unique culture and splendid nature! We have great news! Our advantageous digital wallet, Jeton Wallet, has opened its doors for Japanese consumers who are looking for hassle-free and secure online payments. Moreover, we serve JetonCash, a prepaid card with desired amounts which will serve you fully in JPY and many other fiat currencies. Register with JetCash app now, buy your vouchers, and redeem them online. Enjoy smooth services of Jeton precisely in Japanese!