Japan Prepaid Card and Digital Wallet Business and Investment Opportunities Databook – Market Size and Forecast, Consumer Attitude & Behaviour, Retail Spend

Japan Prepaid Card and Digital Wallet Business and Investment Opportunities Databook – Market Size and Forecast, Consumer Attitude & Behaviour, Retail Spend

Report Description

With the onset of the pandemic, the preference pattern of the consumers shifted towards cashless payments in Japan. Moreover, the millennials of Japan are becoming a more significant part of the consumer economy. They have been demanding a transition to match their tech-friendly habits, which further boosted the cashless payments methods in the country.

Also, Japan has the most vibrant e-commerce market and is the fourth largest in the world. With the rising number of consumers making online payments during the pandemic, the country witnessed a high adoption rate of prepaid cards in the country. Moreover, hypermarkets, supermarkets, convenience stores played a vital role in the growth of the prepaid card market. These retail stores offer loyalty programs and reward schemes, which boosted consumers to adopt these cashless methods, giving further momentum to the prepaid card market in Japan.

Additionally, in Japan, prepaid cards are used in various micropayments such as retail payments, contactless transport products such as prepaid transport ticketing. Consequently, merchants are also trying to expand their products in networks, such as in airports, highway service stations, etc.
In Japan, 2021 witnessed a surge in mobile payments activities, which further gave impetus to various business strategies in the country, providing growth to the prepaid market.

Japanese prepaid card companies integrate with mobile wallet companies to attract more consumers

With the younger generation getting attracted towards digital payments, the Japanese prepaid companies are plunging into partnerships with mobile wallet companies to increase acceptability among consumers, thereby increasing the customer base in the country. For instance,
In October 2021, Japanese prepaid cards WAON and nanaco launched Apple Pay in these prepaid cards to integrate e-Money systems into the fold. Initially, these prepaid cards were used by Google Pay users, but from this partnership, Aeon's WAON and Seven & i Holdings' nanaco is now available to iPhone and Apple Watch users also.
Moreover, the company will allow users to directly transfer plastic cards to wallets in iOS 15, a feature available specific to this platform. This is helpful for those who prefer recharging with cash instead of wallet-stored credit card. Also, WAON and nanaco will allow adding new cards directly to the wallet, and this can be done without the creation of an account.
The Japanese WAON card users get a facility of the ""e-Money"" option in the Wallet app. The addition of the card will provide the users' facilities such as viewing of the transaction history, auto-recharging provision of cards, earning double card points, etc.

Japanese mobile wallet companies launching physical prepaid cards to increase customer base

Mobile wallet companies have extended their product portfolio with physical cards to attract more customers. With older people in the Japanese population, this strategy may work with older citizens who still depend on cash and physical cards. For instance,
In June 2021, Mixi’s mobile wallet “6gram” (Rokugram) launched physical prepaid cards which are compatible with Visa’s touch payment. These cards allow the user to access the 6gram wallet balance and are also available across domestic and overseas Visa member stores.
The prepaid card has no card number mentioned on the card and can be confirmed from the 6gram app on the smartphone. This is done by keeping the security of the cardholder in mind.
The card can be issued from the app itself, and the fees are 600 yen, inclusive of taxes. Additionally, the company charges no annual membership fee, and the usage limit is up to 500,000 yen.

Mobile wallet companies are incorporating contactless technologies in their prepaid cards to provide more versatile payment experience

With the changing payments landscape of the Japanese economy, mobile wallet companies are launching prepaid cards and integrating smart payment solutions to push away from cash and also to widen their customer base. For instance,
In August 2021, Mixi’s mobile wallet “6gram” has selected Idemia, a global leader in Augmented Identity, to launch the first 6gram Real Card with an integrated cashless payment experience.
The card is a physical VISA contactless prepaid card that is connected to 6gram user’s e-wallet accounts. The card leverages IDEMIA’s extensive card personalization technologies that offer the card a unique transparent look.
The new card is also incorporated with IDEMIA’s card activation technology called Card Connect that provides the consumer with advanced banking functionality, including easy card activation and customer authentication.
Together with this, the card also works for retail payments and ATM machines.

According to PayNXT360, the prepaid card market (value terms) in Japan increased at a CAGR of 8.2% during 2017-2021. Over the forecast period of 2022 to 2026, the market is expected to record a CAGR of 10.9%, increasing from US$166.00 billion in 2022 to reach US$250.87 billion by 2026.

This report provides a detailed data centric analysis of prepaid payment instruments, covering spend through prepaid cards and digital wallets across retail and corporate consumer segments. In addition, it provides a snapshot of consumer behaviour and retail spend dynamics in Japan. With over 100 KPIs at country level, this report provides comprehensive understanding of prepaid card and digital wallet card market dynamics.
Market dynamics: Provides a comprehensive view on size and structure, industry dynamics, market trends, consumer attitude and behaviour, and competitive landscape in prepaid card and digital wallet industry in Japan.
Digital wallet segments: Provides value, volume and average value per transaction across 5 key spend categories in digital wallet. This includes retail, travel, entertainment and gaming, restaurant, and recharge and bill payment.
Open loop and closed loop prepaid cards: market estimates and forecasts to assess opportunities 13 open loop and closed loop prepaid market segments. Details four essential KPIs – number of cards in circulation, number of transactions, load value, and value of transactions.
Consumer attitude and behaviour: Drawing from proprietary survey results, this report identifies and interprets key prepaid KPIs, including spend by age, gender, and income level.
Retail spend: Breaks down retail spend across 11 categories to provide detailed insights on consumer behaviour and changing dynamics of prepaid card spend.

Scope

This report provides a detailed data centric analysis of prepaid payment instruments, covering spend through prepaid cards and digital wallets across retail and corporate consumer segments. In addition, it provides a snapshot of consumer behaviour and retail spend dynamics in Japan. With over 100 KPIs at country level, this report provides comprehensive understanding of prepaid card and digital wallet card market dynamics.

Japan Digital Wallet Market Size and Forecast
Transaction Value Trend Analysis
Transaction Volume Trend Analysis
Average Value per Transaction

Japan Digital Wallet Market Size and Forecast by Key Segments
Retail Shopping (Value, Volume, Avg. Value)
Travel (Value, Volume, Avg. Value)
Entertainment and Gaming (Value, Volume, Avg. Value)
Restaurant (Value, Volume, Avg. Value)
Recharge and Bill Payment (Value, Volume, Avg. Value)

Japan Prepaid Card Industry Market Attractiveness
Load Value Trend Analysis
Transaction Value Trend Analysis
Transaction Volume Trend Analysis
Average Value per Transaction
Number of Cards

Market Share Analysis by Functional Attributes – Open Loop vs. Closed Loop, 2016 – 2025

Market Share Analysis by Prepaid Card Categories

Japan Open Loop Prepaid Card Future Growth Dynamics, 2016 – 2025
Transaction Value Trend Analysis
Transaction Volume Trend Analysis
Average Value per Transaction
Number of Cards

Japan Closed Loop Prepaid Card Future Growth Dynamics, 2016 – 2025
Transaction Value Trend Analysis
Transaction Volume Trend Analysis
Average Value per Transaction
Number of Cards

Japan Prepaid Card Consumer Usage Trends
By Age Group
By Income Group
By Gender

Japan General Purpose Prepaid Card Market Size and Forecast

Japan Gift Card Market Size and Forecast
Gift Card Market Size and Forecast by Functional Attribute
By Open Loop Gift Card
By Closed Loop Gift Card
Gift Card Market Size and Forecast by Consumer Segments
By Retail Consumer Segment
By Corporate Consumer Segment
Gift Card Market Share Analysis by Retail Categories
Gift Card Market Share Analysis by Gifting Occasion
Gift Card Market Share Analysis by Purchase Location

Japan Entertainment and Gaming Prepaid Card Market Size and Forecast

Japan Teen and Campus Prepaid Card Market Size and Forecast
Teen and Campus Prepaid Card Market Size and Forecast by Functional Attribute
By Open Loop Teen and Campus Prepaid Card
By Closed Loop Teen and Campus Prepaid Card

Japan Business and Administrative Expense Prepaid Card Market Size and Forecast
Business and Administrative Expense Prepaid Card Market Size and Forecast by Consumer Segments
By Small Scale Business Segment
By Mid-Tier Business Segment
By Enterprise Business Segment
By Government Segment

Japan Payroll Prepaid Card Market Size and Forecast
Payroll Prepaid Card Market Size and Forecast by Consumer Segments
By Small Scale Business Segment
By Mid-Tier Business Segment
By Enterprise Business Segment
By Government Segment

Japan Meal Prepaid Card Market Size and Forecast
Meal Prepaid Card Market Size and Forecast by Consumer Segments
By Small Scale Business Segment
By Mid-Tier Business Segment
By Enterprise Business Segment
By Government Segment

Japan Travel Forex Prepaid Card Market Size and Forecast
Travel Forex Prepaid Card Market Size and Forecast by Consumer Segments
By Retail
By Small Scale Business Segment
By Mid-Tier Business Segment
By Enterprise Business Segment
By Government Segment

Japan Transit and Tolls Prepaid Card Market Size and Forecast

Japan Healthcare and Wellness Prepaid Card Market Size and Forecast

Japan Social Security and Other Government Benefit Programs Prepaid Card Market Size and Forecast

Japan Fuel Prepaid Cards Market Size and Forecast

Japan Utilities, and Other Prepaid Cards Market Size and Forecast

Reasons to buy
In-depth understanding of prepaid card and digital wallet market dynamics: Understand market opportunity, industry dynamics, key trends and drivers across 75+ market segments and sub-segments of prepaid payment instrument in Japan.
Develop market specific strategies: Identify growth segments and target specific opportunities to formulate your prepaid card and digital wallet strategy; assess market specific key trends, drivers and risks in the industry.
Get insights into consumer attitude and behaviour: Understand changing consumer attitude and behaviour and boost ROI. Get detailed insights into retail spend through prepaid cards and digital wallets.