In 2016, the Japanese e-Commerce market was worth US$127 billion – making it the second largest e-Commerce market in Asia – and the fourth largest in the world. Even though it’s nearing saturation – with 96% of the population accessing the Internet – there’s still growth potential in the market. According to our predictions, Japanese e-Commerce will reach US$154 billion by 2020 – that’s over 21% growth.
Unlike many of its Asian counterparts, mobile commerce isn’t currently as dominant in Japan – contributing only 26.7% of e-Commerce sales. However, with messaging app operator LINE, expanding its mobile service LINE Pay, as well as other trends, we’re predicting m-Commerce will account for 33% if all e-Commerce sales by 2020.
Japan is an important e-Commerce market, not only in Asia-Pacific – but also in the world. So online businesses should definitely consider this market as a key target in the region.
Japan Payment trends
Out of all Asian markets, Japanese payment preferences are probably most aligned with the West. Credit Cards dominate – accounting for 55% of e-Commerce payments. Popular card schemes also replicate the West – with Visa holding 45% market share. So, if you’re a Western business, yet to enter Asia – Japan could be a sensible first step.
However, there are some local payment methods that are popular in Japan. These include PostPay, Bank Transfer and Cash on Delivery. If you’re unfamiliar with these payment methods – then our Japanese team can help.
Lutfillo Yuldoshev, Business Development Director, Japan, Worldpay eCom
“We help our Japanese customers grow their business globally through offering a mixture of payment optimisation and the right risk management solution.”
Asia Pacific Markets
As well as Japan, we currently support e-Commerce payments in all the major markets in the region – both locally and cross-border. These include: Australia, India, China, Hong Kong, Malaysia, and Singapore.
Our annual Global Payments Report covers these markets in more detail.You can download the report here
Japanese Payment Preferences
If you’re unfamiliar with any of the popular payment methods in the region...Find out more here