The e-Commerce market in Japan is flourishing, marked by extensive internet and online banking usage. To successfully penetrate this market, businesses should prioritize incorporating popular payment methods like credit cards (including JCB), online banking, and cash payments through convenience stores. The key to success lies in accommodating the diverse preferences of Japanese consumers, enhancing accessibility, and thereby capitalizing on the substantial consumer base in the country.
Popular offline payment methods in Japan
Cash
Debit Cards
Prepaid Cards
Convenience Stores
Smartphone Payments
Electronic Money (e-Money)
List of payment methods in Japan
Visa is extensively recognized as a widely accepted payment method in Japan, applicable at major retailers, restaurants, hotels, and various establishments. Even smaller businesses and local shops often welcome Visa, although cash or alternative payment methods may be required in some instances. Visa cards are versatile for both in-person and online transactions, with the customary requirement of inserting or swiping the card and entering a PIN for verification; contactless payments via Visa payWave or payPass are also options in some places. While widespread, it’s essential to be aware that certain establishments may not accept credit cards or may impose minimum purchase requirements. Carrying cash is advisable, particularly in smaller towns or rural areas where card acceptance may be limited. It’s prudent to notify your bank or credit card company about your travel plans beforehand to prevent potential issues with fraud protection measures.
Mastercard is widely accepted as a payment method in Japan. It can be used at most major retailers, restaurants, hotels, and other establishments throughout the country. Many smaller shops and businesses may not accept credit cards, so it is always a good idea to carry some cash as well. Additionally, some places may only accept certain types of Mastercards, such as those with an EMV chip. It is always a good idea to check with the establishment beforehand to ensure that they accept Mastercard as a form of payment.
JCB (Japan Credit Bureau) stands out as a prominent payment method in Japan, being one of the largest credit card issuers with broad acceptance across the country. The versatile JCB cards facilitate transactions ranging from online shopping and in-store purchases to cash withdrawals at ATMs. Widely embraced by diverse merchants, including department stores, supermarkets, restaurants, and convenience stores, JCB cards offer cardholders enticing benefits such as discounts, cashback, and exclusive event access. Beyond transactional perks, JCB extends additional services like travel insurance, concierge assistance, and airport lounge access, catering to the needs of both local and international users. Notably, JCB has expanded its global footprint, with millions of merchants worldwide now accepting their cards, enhancing the convenience for Japanese travelers abroad. Overall, JCB’s extensive acceptance network, coupled with its array of benefits, establishes it as a popular and practical payment choice in Japan for domestic and international transactions alike.
American Express is widely accepted as a payment method in Japan. Many merchants, including hotels, restaurants, and shops, accept American Express cards. However, it is worth noting that not all businesses in Japan accept American Express, especially smaller establishments or local shops. It is always a good idea to carry alternative payment methods, such as cash or other major credit cards like Visa or Mastercard, just in case. Additionally, it is recommended to inform your bank or credit card company of your travel plans to ensure that your card will work smoothly while you are in Japan.
Pay Easy is a widely embraced online banking payment method in Japan, enabling customers to conduct transactions directly from their bank accounts, eliminating the necessity for credit cards or cash. Accepted by a diverse array of online merchants, including e-commerce platforms, utility companies, and government agencies, Pay Easy requires users to possess an online banking account with a participating bank. During the checkout process, customers can opt for Pay Easy as their payment method, initiating a secure redirection to their bank’s online portal for authentication and authorization. The completed transaction redirects the customer back to the merchant’s site. This method not only furnishes customers with a secure and hassle-free means of online payment but also allows for easy tracking and management of transactions through their online banking accounts. For merchants, incorporating Pay Easy enhances sales opportunities by providing a popular alternative payment option in Japan, while concurrently mitigating the risks of chargebacks and fraud associated with credit card payments. Ultimately, Pay Easy stands out as a favored and convenient online banking payment solution with mutual benefits for both customers and merchants in the Japanese market.
UnionPay is a highly prevalent and convenient payment method in Japan, accepted at major retailers, hotels, restaurants, and tourist attractions for both online and offline transactions. To utilize UnionPay, individuals can look for the UnionPay logo or inquire with the merchant about its acceptance. The process involves presenting the UnionPay card to the cashier or following specified instructions for online payments. Additionally, some merchants in Japan support UnionPay mobile payments like QuickPass and Apple Pay, enabling contactless transactions through smartphones. Despite its widespread acceptance, there might be smaller establishments that do not accommodate UnionPay, emphasizing the importance of carrying cash or having alternative payment methods. Overall, UnionPay facilitates seamless transactions for travelers in Japan, enhancing their convenience and enjoyment during their stay.
WeChat Pay, a widely used mobile payment service in China, has expanded its reach to countries such as Japan, where it is gaining popularity, particularly among Chinese tourists and residents. In Japan, WeChat Pay is accepted at various establishments, including retail stores, restaurants, and online platforms. To utilize this payment method, users must have a WeChat account and link their bank card to it. Transactions are facilitated through the WeChat app by scanning QR codes at participating merchants. Additionally, users can transfer money locally or internationally within the WeChat network. The convenience and security of WeChat Pay have made it a favored choice in Japan, particularly for individuals familiar with the app from their home country or those who frequently travel to China. As a result, many businesses in popular tourist areas and shopping districts now embrace WeChat Pay to meet the payment preferences of Chinese customers.
Alipay, the widely used Chinese mobile payment platform, has extended its services to Japan through partnerships with local merchants and businesses. To utilize Alipay in Japan, users must have a registered Alipay account and download the mobile app, linking it to their Japanese bank account or credit card for transactions. Accepted at diverse locations including retail stores, restaurants, hotels, and tourist attractions, Alipay streamlines payments through QR code scans and confirmation within the app. The platform also offers perks in Japan, such as discounts from participating merchants and access to services like transportation and ticketing. Overall, Alipay provides a convenient and secure payment solution for Chinese tourists and residents in Japan, enabling seamless transactions through their preferred mobile payment method.
Apple Pay quickly established itself as a leading mobile payment service in the country. Enabling users to make seamless transactions with their iPhone, Apple Watch, or iPad, the service is supported by major credit card companies and prominent banks such as Visa, Mastercard, American Express, Sumitomo Mitsui, Mizuho, and Rakuten. A notable feature is its integration with Suica, a popular contactless payment system used for public transportation and retail in Tokyo and other major cities. Users can add their Suica card to Apple Pay, facilitating payments for transportation and purchases at various outlets. Beyond physical stores, the service extends to online platforms, allowing users to make secure transactions with the ease of Touch ID or Face ID authentication. The success of Apple Pay in Japan is attributed to its convenience, security, and the country’s existing adoption of contactless payment systems like Suica, contributing to the widespread acceptance of mobile payments through Apple devices.
Diners Club International is a widely embraced payment option in Japan, accepted at numerous restaurants, hotels, and retail establishments both online and offline. The convenience of Diners Club cards makes them a popular choice for both residents and travelers. To utilize the card in Japan, one can simply present it at the point of sale or enter the details for online purchases, with many establishments displaying the Diners Club logo to signify acceptance. However, it’s important to note that while Diners Club is widely accepted, it may not be as pervasive as major credit cards like Visa or Mastercard, emphasizing the importance of carrying alternative payment methods when in Japan. Additionally, users are advised to check with their bank or credit card issuer beforehand to ensure there are no foreign transaction fees or other restrictions associated with international card usage.
Discover, the American payment system, has recently made its way into the Japanese market. This move is expected to provide more options for consumers and merchants alike. With Discover’s arrival, Japanese consumers can now enjoy the benefits of using a globally recognized payment system that offers cashback rewards and other perks. For merchants, Discover’s presence means access to a wider customer base and increased revenue. This development is a significant step towards promoting cashless transactions in Japan, which has been a long-standing goal of the government. As Discover continues to expand its reach in Japan, it is expected to bring about positive changes in the country’s payment landscape.
Google Pay is available as a payment method in Japan. Users can link their credit or debit cards to their Google Pay account and use it to make payments at various merchants and online platforms that accept Google Pay. Additionally, users can also add their Suica or WAON cards to Google Pay for contactless payments at compatible terminals. Google Pay also supports in-app purchases and peer-to-peer transfers within Japan.
PayPal is widely embraced as a versatile payment method, accepted by numerous online retailers, both domestic and international. It serves as a convenient option for customers to make purchases, extending its utility beyond online transactions to encompass peer-to-peer payments and domestic money transfers. To leverage PayPal’s services in Japan, individuals must establish a PayPal account, linking it to their bank account or credit card. Once set up, users can seamlessly make payments by choosing the PayPal option during checkout on participating websites or by directly transferring funds to another PayPal user. The availability of a mobile app for iOS and Android devices further enhances accessibility, enabling users to make payments and transfers on the move. Overall, PayPal offers a secure and user-friendly solution for facilitating online transactions and monetary transfers in Japan.
