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Japans Cards and Payments Industry: Emerging Opportunities, Trends, Size, Drivers, Strategies, Products and Competitive Landscape

Published By :

Timetric

Published Date : Mar 2013

Category :

Banking

No. of Pages : 109 Pages


Synopsis

The report provides top-level market analysis, information and insights into Japan\'s cards and payments industry, including:

  • Current and forecast values for each category of Japan\'s cards and payments industry, including debit cards, credit cards, charge cards and prepaid cards
  • Comprehensive analysis of the industry’s market attractiveness and future growth areas
  • Analysis of various market drivers and regulations governing Japan\'s cards and payments industry
  • Detailed analysis of the marketing strategies adopted for selling debit, credit , charge and prepaid cards used by banks and other institutions in the market
  • Comprehensive analysis of consumer attitudes and buying preferences for cards
  • The competitive landscape of Japan\'s cards and payments industry

Executive summary

During the review period, the number of cards in circulation in the channel increased at a compound annual growth rate (CAGR) of 2.94% to reach 980.9 million cards in 2013, while its value recorded a review-period CAGR of 3.45%, reaching JPY70.1 trillion (US$723.4 billion) in 2013. 
The Japanese card payments channel was mainly driven by strong growth in the prepaid cards category, which registered the highest review-period CAGR of 12.68%. The share of prepaid cards category in overall card payments channel increased from 15.9% in 2009 to 22.9% in 2013. In terms of number of cards in circulation, prepaid cards increased from 139.3 million in 2009 to 224.5 million in 2013. The charge cards category recorded the second-highest review-period CAGR of 2.55%, increasing from 7.4 million cards in 2009 to 8.2 million in 2013. The debit cards category registered the slowest growth during the review period, at a CAGR of 0.46%, increasing from 412.0 million cards in 2009 to 419.7 million in 2013.
In 2009, non-cash payments in Japan were dominated by credit transfers with a total transaction value of JPY2,433.9 trillion (US$26.0 trillion), while card payments valued JPY61.2 trillion (US$654.1 billion). During the review period, card payments recorded a CAGR of 3.45%, to value JPY70.1 trillion (US$723.4 billion) in 2013, while credit transfers recorded a CAGR of 3.73%, to value JPY2,817.7 trillion (US$29.1 trillion) in 2013. Internet penetration growth and rising disposable incomes, supported by an increased consumer spending, resulted in increased online retail sales. The country’s domestic business-to-business (B2B) e commerce grew to JPY262.0 trillion (US$3.3 trillion) in 2012, an increase of 101.7% compared to the previous year. Similarly, business-to-consumer (B2C) e-commerce increased by 112.5%, to reach JPY9.5 trillion (US$119.1 billion) in 2012.

Scope

  • This report provides a comprehensive analysis of Japan\'s cards and payments industry.
  • It provides current values for Japan\'s cards and payments industry for 2013, and forecast figures for 2018.
  • It details the different economic, infrastructural and business drivers affecting Japan\'s cards and payments industry.
  • It outlines the current regulatory framework in the industry.
  • It details the marketing strategies used by various banks and other institutions.
  • It profiles the major banks in Japan\'s cards and payments industry.

Reasons to buy

  • Make strategic business decisions using top-level historic and forecast market data related to Japan\'s cards and payments industry and each market within it.
  • Understand the key market trends and growth opportunities within Japan\'s cards and payments industry.
  • Assess the competitive dynamics in Japan\'s cards and payments industry.
  • Gain insights in to the marketing strategies used for selling various card types in Japan.
  • Gain insights into key regulations governing Japan\'s cards and payments industry.

Key highlights

  • During the review period, the number of cards in circulation in the channel increased at a compound annual growth rate (CAGR) of 2.94% to reach 980.9 million cards in 2013, while its value recorded a review-period CAGR of 3.45%, reaching JPY70.1 trillion (US$723.4 billion) in 2013.
  • The Japanese card payments channel was mainly driven by strong growth in the prepaid cards category, which registered the highest review-period CAGR of 12.68%. The share of prepaid cards category in overall card payments channel increased from 15.9% in 2009 to 22.9% in 2013. In terms of number of cards in circulation, prepaid cards increased from 139.3 million in 2009 to 224.5 million in 2013. The charge cards category recorded the second-highest review-period CAGR of 2.55%, increasing from 7.4 million cards in 2009 to 8.2 million in 2013.
  • Consumers are moving to prepaid and postpaid e-money purses incorporated into payment cards and mobile phones to make fast and secure contactless transactions, both at point-of-sale (POS) terminals and online. During the review period, the transaction value of prepaid cards increased at a CAGR of 21.76%, from JPY1.3 trillion (US$14.2 billion) in 2009 to JPY2.9 trillion (US$30.1 billion) in 2013. Sony developed the chip for Japan’s e-money platform which is now used in payment cards and mobile phones.
  • Internet penetration growth and rising disposable incomes, supported by an increased consumer spending, resulted in increased online retail sales. The country’s domestic business-to-business (B2B) e commerce grew to JPY262.0 trillion (US$3.3 trillion) in 2012, an increase of 101.7% compared to the previous year. Similarly, business-to-consumer (B2C) e-commerce increased by 112.5%, to reach JPY9.5 trillion (US$119.1 billion) in 2012.
Table of contents

1 Executive Summary

2 Analysis of Market Environment, Key Trends and Drivers
2.1 Payment Infrastructure and Emerging Technologies
2.1.1 Automatic Teller Machines (ATMs)
2.1.2 Point of sale (POS) terminals
2.1.3 Internet penetration
2.1.4 Contactless payments
2.1.5 Mobile payments
2.2 Business Drivers
2.2.1 Growth in retail industry
2.2.2 Rising online retailing
2.3 Economic Drivers
2.3.1 Stable GDP
2.3.2 Increasing GDP per capita income
2.3.3 Low unemployment rate

3 Cards and Payments Industry Share Analysis
3.1 Industry Overview
3.1.1 Cash
3.1.2 Checks
3.1.3 Card payments
3.1.4 Credit transfers

4 Regulatory Framework and Card Fraud Statistics
4.1 Regulatory Framework
4.1.1 Foreign direct investment (FDI) regulations
4.2 Card Fraud Statistics
4.2.1 Cards-not-present fraud
4.2.2 Counterfeit cards
4.2.3 Cards lost or stolen
4.2.4 Card ID theft

5 Emerging Consumer Attitudes and Trends
5.1 Industry Segmentation and Targeting
5.1.1 Retail segment
5.1.2 Corporate segment
5.2 Travel and Tourism Spending
5.2.1 Outbound tourist trips
5.2.2 Outbound tourist spending
5.3 Retail Card Spending
5.3.1 Analysis by product category
5.3.2 Analysis by retail channel share

6 Analysis of Card Payments and Growth Prospects
6.1 Channel Share Analysis by Card Category
6.2 Size and Forecast of the Card Payments Channel
6.2.1 Analysis by number of cards in circulation
6.2.2 Analysis by transaction value

7 Analysis of Credit Card Payments and Growth Prospects
7.1 Overall Category Size and Forecast
7.1.1 Analysis by number of cards in circulation
7.1.2 Analysis by transaction value
7.1.3 Analysis by transaction volume
7.2 Transaction Share Analysis by Channel
7.2.1 Analysis by transaction value
7.2.2 Analysis by transaction volume
7.3 Personal Credit Cards Segment Size and Forecast
7.3.1 Analysis by number of cards in circulation
7.3.2 Analysis by transaction value
7.3.3 Analysis by transaction volume
7.4 Commercial Credit Cards Segment Size and Forecast
7.4.1 Analysis by number of cards in circulation
7.4.2 Analysis by transaction value
7.4.3 Analysis by transaction volume
7.5 Competitive Landscape
7.5.1 Scheme share analysis
7.5.2 Issuer share analysis

8 Analysis of Debit Card Payments and Growth Prospects
8.1 Overall Category Size and Forecast
8.1.1 Analysis by number of cards in circulation
8.1.2 Analysis by transaction value
8.1.3 Analysis by transaction volume
8.2 Transaction Share Analysis by Channel
8.2.1 Analysis by transaction value
8.2.2 Analysis by transaction volume
8.3 Competitive Landscape
8.3.1 Scheme share analysis
8.3.2 Issuer share analysis

9 Analysis of Charge Card Payments and Growth Prospects
9.1 Overall Category Size and Forecast
9.1.1 Analysis by number of cards in circulation
9.1.2 Analysis by transaction value
9.1.3 Analysis by transaction volume
9.2 Transaction Share Analysis by Channel
9.2.1 Analysis by transaction value
9.2.2 Analysis by transaction volume
9.3 Personal Charge Cards Segment Size and Forecast
9.3.1 Analysis by number of cards in circulation
9.3.2 Analysis by transaction value
9.3.3 Analysis by transaction volume
9.4 Commercial Charge Cards Segment Size and Forecast
9.4.1 Analysis by number of cards in circulation
9.4.2 Analysis by transaction value
9.4.3 Analysis by transaction volume
9.5 Competitive Landscape
9.5.1 Scheme share analysis

10 Analysis of Prepaid Card Payments and Growth Prospects
10.1 Overall Category Size and Forecast
10.1.1 Analysis by number of cards in circulation
10.1.2 Analysis by transaction value
10.2 Open-Loop Prepaid Cards Segment Size and Forecast
10.2.1 Analysis by number of cards in circulation
10.2.2 Analysis by transaction value
10.3 Closed-Loop Prepaid Cards Segment Size and Forecast
10.3.1 Analysis by number of cards in circulation
10.3.2 Analysis by transaction value

11 Merchant Acquiring
11.1 Merchant Acquirers in Japan
11.2 Company Profile of JCB

12 Company Profiles of Card Issuers
12.1 Shinsei Bank
12.1.1 Key financials
12.1.2 Card portfolio
12.1.3 Strategies
12.2 Japan Post Bank
12.2.1 Key financials
12.2.2 Card portfolio
12.2.3 Strategies
12.3 Citibank Japan
12.3.1 Key financials
12.3.2 Card portfolio
12.3.3 Strategies
12.4 Credit Saison
12.4.1 Key financials
12.4.2 Card portfolio
12.4.3 Strategies
12.5 JACCS Co., Ltd.
12.5.1 Key financials
12.5.2 Card portfolio
12.5.3 Strategies

13 Appendix
13.1 Methodology
13.2 Contact Timetric
13.3 About Timetric
13.4 Timetric’s Services
13.5 Definitions
13.6 Disclaimer

List of Table


Table 1: Japanese Payment Channels (JPY Trillion), 2009–2013
Table 2: Market Entry Strategies of Foreign Banks in Japan
Table 3: Japanese Card Fraud (JPY Million), 2009–2013
Table 4: Cards Offered by Various Banks for Shoppers in Japan
Table 5: Cards Offered by Various Banks for HNWIs in Japan
Table 6: Cards Offered by Various Banks for Travelers in Japan
Table 7: Cards Offered by Various Banks for Young Population in Japan
Table 8: Japanese Card Spending by Retail Product Category (JPY Billion), 2008 and 2012
Table 9: Japanese Card Spending by Retail Channel (JPY Billion), 2008 and 2012
Table 10: Japanese Card Payments Channel by Card Category (Million), 2009–2018
Table 11: Japanese Card Payments Channel Size by Volume of Cards (Million), 2009–2018
Table 12: Japanese Card Payments Channel Size by Transaction Value (JPY Trillion), 2009–2018
Table 13: Japanese Card Payments Channel Size by Transaction Value (US$ Billion), 2009–2018
Table 14: Japanese Credit Cards Category Size by Volume of Cards (Million), 2009–2018
Table 15: Japanese Credit Cards Category Size by Transaction Value (JPY Trillion), 2009–2018
Table 16: Japanese Credit Cards Category Size by Transaction Value (US$ Billion), 2009–2018
Table 17: Japanese Credit Cards Category Size by Transaction Volume (Billion), 2009–2018
Table 18: Japanese Personal Credit Cards Segment Size by Volume of Cards (Million), 2009–2018
Table 19: Japanese Personal Credit Cards Segment Size by Transaction Value (JPY Trillion), 2009–2018
Table 20: Japanese Personal Credit Cards Segment Size by Transaction Value (US$ Billion), 2009–2018
Table 21: Japanese Personal Credit Cards Segment Size by Transaction Volume (Billion), 2009–2018
Table 22: Japanese Commercial Credit Cards Segment Size by Volume of Cards (Million), 2009–2018
Table 23: Japanese Commercial Credit Cards Segment Size by Transaction Value (JPY Trillion), 2009–2018
Table 24: Japanese Commercial Credit Cards Segment Size by Transaction Value (US$ Billion), 2009–2018
Table 25: Japanese Commercial Credit Cards Segment Size by Transaction Volume (Million), 2009–2018
Table 26: Japanese Debit Cards Category Size by Volume of Cards (Million), 2009–2018
Table 27: Japanese Debit Cards Category Size by Transaction Value (JPY Trillion), 2009–2018
Table 28: Japanese Debit Cards Category Size by Transaction Value (US$ Billion), 2009–2018
Table 29: Japanese Debit Cards Category Size by Transaction Volume (Million), 2009–2018
Table 30: Japanese Charge Cards Category Size by Volume of Cards (Million), 2009–2018
Table 31: Japanese Charge Cards Category Size by Transaction Value (JPY Trillion), 2009–2018
Table 32: Japanese Charge Cards Category Size by Transaction Value (US$ Billion), 2009–2018
Table 33: Japanese Charge Cards Category Size by Transaction Volume (Million), 2009–2018
Table 34: Japanese Personal Charge Cards Segment Size by Volume of Cards (Million), 2009–2018
Table 35: Japanese Personal Charge Cards Segment Size by Transaction Value (JPY Trillion), 2009–2018
Table 36: Japanese Personal Charge Cards Segment Size by Transaction Value (US$ Billion), 2009–2018
Table 37: Japanese Personal Charge Cards Segment Size by Transaction Volume (Million), 2009–2018
Table 38: Japanese Commercial Charge Cards Segment Size by Volume of Cards (Thousand), 2009–2018
Table 39: Japanese Commercial Charge Cards Segment Size by Transaction Value (JPY Billion), 2009–2018
Table 40: Japanese Commercial Charge Cards Segment Size by Transaction Value (US$ Billion), 2009–2018
Table 41: Japanese Commercial Charge Cards Segment Size by Transaction Volume (Million), 2009–2018
Table 42: Japanese Prepaid Cards Category Size by Volume of Cards (Million), 2009–2018
Table 43: Japanese Prepaid Cards Category Size by Transaction Value (JPY Trillion), 2009–2018
Table 44: Japanese Prepaid Cards Category Size by Transaction Value (US$ Billion), 2009–2018
Table 45: Japanese Open-Loop Prepaid Cards Segment Size by Volume of Cards (Million), 2009–2018
Table 46: Japanese Open-Loop Prepaid Cards Segment Size by Transaction Value (JPY Trillion), 2009–2018
Table 47: Japanese Open-Loop Prepaid Cards Segment Size by Transaction Value (US$ Billion), 2009–2018
Table 48: Japanese Closed-Loop Prepaid Cards Segment Size by Volume of Cards (Million), 2009–2018
Table 49: Japanese Closed-Loop Prepaid Cards Segment Size by Transaction Value (JPY Billion), 2009–2018
Table 50: Japanese Closed-Loop Prepaid Cards Segment Size by Transaction Value (US$ Million), 2009–2018
Table 51: List of JCB Card Issuing Partners, 2013
Table 52: Shinsei Bank – Key Financial Indicators (JPY Billion), Year Ended March, 2012–2013
Table 53: Shinsei Bank – Card Portfolio and Key Features
Table 54: Japan Post Bank – Key Financial Indicators (JPY Billion), Year Ended March, 2012–2013
Table 55: Japan Post Bank – Card Portfolio and Key Features
Table 56: Citibank Japan – Key Financial Indicators (JPY Billion), Year Ended March, 2012–2013
Table 57: Citibank Japan – Card Portfolio and Key Features
Table 58: Credit Saison – Key Financial Indicators (JPY Billion), Year Ended March, 2012–2013
Table 59: Credit Saison – Card Portfolio and Key Features
Table 60: JACCS – Key Financial Indicators (JPY Billion), Year Ended March, 2012–2013
Table 61: JACCS – Card Portfolio and Key Features
Table 62: Key Definitions

List of Chart


Figure 1: Japan – Benchmarking Payment Cards Channel Against Other Regional Markets
Figure 2: Japan – Growth of Various Card Categories (%), 2009–2018
Figure 3: Japanese ATMs Penetration, 2009–2018
Figure 4: Japanese POS Terminals Penetration, 2009–2018
Figure 5: Japan – Internet Users per 100 Inhabitants, 2009–2013
Figure 6: Growth of Contactless Cards in Japan (Million), 2009–2018
Figure 7: Japan – M-payments Value (JPY Billion), 2009–2018
Figure 8: Japan – Retail Sales Value (JPY Trillion), 2009–2018
Figure 9: Japan – Real GDP Growth Rate (%), 2009–2018
Figure 10: Japan – Nominal GDP Per Capita Income (US$), 2009–2018
Figure 11: Japan – Unemployment Rate, (%), 2009–2018
Figure 12: Share of Japanese Payment Channels (%), 2009 and 2013
Figure 13: Japanese Card Fraud (JPY Million), 2009 and 2013
Figure 14: Japanese Cards-Not-Present Fraud Value (JPY Billion), 2009–2013
Figure 15: Japanese Counterfeit Cards Fraud Value (JPY Billion), 2009–2013
Figure 16: Japanese Cards Lost or Stolen Fraud Value (JPY Million), 2009–2013
Figure 17: Japanese Card ID Theft Fraud Value (JPY Million), 2009–2013
Figure 18: Japanese Cards and Payments Industry Segmentation by Card Type
Figure 19: Japanese Volume of Outbound Business Tourists (Million), 2009–2013
Figure 20: Japanese Volume of Outbound Tourists (Million), 2009–2018
Figure 21: Japanese Outbound Tourists Spending (JPY Billion), 2009–2018
Figure 22: Japanese Card Spending by Retail Product Category (%), 2012
Figure 23: Japanese Card Spending by Retail Channel Share (%), 2012
Figure 24: Japanese Card Payments Channel by Card Category (%), 2009–2018
Figure 25: Japanese Card Payments Channel Size by Volume of Cards (Million), 2009–2018
Figure 26: Japanese Card Payments Channel Size by Transaction Value (JPY Trillion), 2009–2018
Figure 27: Japanese Credit Cards Category Volume and Penetration, 2009–2018
Figure 28: Japanese Credit Cards Category Size by Volume of Cards (Million), 2009–2018
Figure 29: Japanese Credit Cards Category Size by Transaction Value (JPY Trillion), 2009–2018
Figure 30: Japanese Cards Category Size by Transaction Volume (Billion), 2009–2018
Figure 31: Japanese Credit Cards Category Transaction Value Share Analysis by Channel (JPY Trillion), 2009–2018
Figure 32: Japanese Credit Cards Category Transaction Volume Share Analysis by Channel (Million), 2009–2018
Figure 33: Japanese Personal Credit Cards Segment Size by Volume of Cards (Million), 2009–2018
Figure 34: Japanese Personal Credit Cards Segment Size by Transaction Value (JPY Trillion), 2009–2018
Figure 35: Japanese Personal Credit Cards Segment Size by Transaction Volume (Billion), 2009–2018
Figure 36: Japanese Commercial Credit Cards Segment Size by Volume of Cards (Million), 2009–2018
Figure 37: Japanese Commercial Credit Cards Segment Size by Transaction Value (JPY Trillion), 2009–2018
Figure 38: Japanese Commercial Credit Cards Segment Size by Transaction Volume (Million), 2009–2018
Figure 39: Japanese Credit Cards Category Share by Scheme (%), 2013
Figure 40: Japanese Credit Cards Category Share by Issuer (%), 2013
Figure 41: Japanese Debit Cards Category Volume and Penetration, 2009–2018
Figure 42: Japanese Debit Cards Category Size by Volume of Cards (Million), 2009–2018
Figure 43: Japanese Debit Cards Category Size by Transaction Value (JPY Trillion), 2009–2018
Figure 44: Japanese Debit Cards Category Size by Transaction Volume (Million), 2009–2018
Figure 45: Japanese Debit Cards Category Transactions Value Share Analysis by Channel (JPY Billion), 2009–2018
Figure 46: Japanese Debit Card Transactions Volume Share Analysis by Channel (Million), 2009–2018
Figure 47: Japanese Debit Cards Category Share by Scheme (%), 2013
Figure 48: Japanese Debit Cards Category Share by Issuer (%), 2013
Figure 49: Japanese Charge Cards Category Volume and Penetration, 2009–2018
Figure 50: Japanese Charge Cards Category Size by Volume of Cards (Million), 2009–2018
Figure 51: Japanese Charge Cards Category Size by Transaction Value (JPY Billion), 2009–2018
Figure 52: Japanese Charge Cards Category Size by Transaction Volume (Million), 2009–2018
Figure 53: Japanese Charge Cards Transactions Value Share Analysis by Channel (JPY Billion), 2009–2018
Figure 54: Japanese Charge Cards Transactions Volume Share Analysis by Channel (Million), 2009–2018
Figure 55: Japanese Personal Charge Cards Segment Size by Volume of Cards (Million), 2009–2018
Figure 56: Japanese Personal Charge Cards Segment Size by Transaction Value (JPY Trillion), 2009–2018
Figure 57: Japanese Personal Charge Cards Segment Size by Transaction Volume (Million), 2009–2018
Figure 58: Japanese Commercial Charge Cards Segment Size by Volume of Cards (Thousand), 2009–2018
Figure 59: Japanese Commercial Charge Cards Segment Size by Transaction Value (JPY Billion), 2009–2018
Figure 60: Japanese Commercial Charge Cards Segment Size by Transaction Volume (Million), 2009–2018
Figure 61: Japanese Charge Cards Category Share by Scheme (%), 2013
Figure 62: Japanese Prepaid Cards Category Volume and Penetration, 2009–2018
Figure 63: Japanese Prepaid Cards Category Size by Volume of Cards (Million), 2009–2018
Figure 64: Japanese Prepaid Cards Category Size by Transaction Value (JPY Trillion), 2009–2018
Figure 65: Japanese Open-Loop Prepaid Cards Segment Size by Volume of Cards (Million), 2009–2018
Figure 66: Japanese Open-Loop Prepaid Cards Segment Size by Transaction Value (JPY Trillion), 2009–2018
Figure 67: Japanese Closed-Loop Prepaid Cards Segment Size by Volume of Cards (Million), 2009–2018
Figure 68: Japanese Closed-Loop Prepaid Cards Segment Size by Transaction Value (JPY Billion), 2009–2018
Figure 69: Merchant Acquirer Market Share in Japan (%), 2013

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