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Dallas, TX: ReportsandReports announce Payment Cards in Japan Market Research Report in its Store.

Browse complete Report at http://www.reportsandreports.com/market-reports/payment-cards-in-japan/

Payment Cards in Japan is an invaluable guide to one of the world's most complex card markets. The report provides statistics on market size, competitor market shares and forecasts. It also provides an overview of regulation, competitor activities, issuer strategy and product innovation including developments in contactless, mobile payments, online and prepaid cards.

Scope

Data and analysis provided on debit cards, credit cards and deferred debit and charge cards.

Historic market data and competitor market shares are presented for 2004-2008, H1 2009, with forecasts presented to 2014.

New for 2010 includes data covering transactions by merchant category, premium card branding, benefits per card, card primacy and repayment behaviour.

Includes a detailed analysis of developments in the areas of e-money, contactless, mobile, online and prepaid cards.

Highlights

The Japanese payment market remains dominated by cash, with consumers using that payment form even for high value transactions. Despite this, credit cards are continuing to show positive levels of growth with a CAGR of 2.5% between 2004 and 2008. Pay now cards however remain almost exclusively used at ATMs, with use at the POS in active decline.

The competitive situation in Japan is in a state of flux as a result of new regulations restricting APRs and issuer margins. Acquisitions and mergers are currently running high as the industry restructures itself. Despite this, the market remains dominated by JCB, who hold a 34% share of the market, a full 20% more than its nearest competitor.

Contactless, mobile, and prepaid payments are at an advanced state of development in Japan in the form of e-payments, typically on a contactless card or on a mobile phone handset. A large proportion of the market also holds transport ticketing functionality. E-money has gone truly mainstream with over 100 million cards in issue.

Reasons to Purchase

Learn how payment cards in Japan work, and how they have developed over the past five years.

Understand recent developments in Japanese payments in terms of consolidation, new entrants and product/technology innovations.

Plan your future strategy effectively with Datamonitor's five year forecasts across all product categories.

Table Of contents

Overview 1

Catalyst 1

Summary 1

Executive Summary 2

Sizing and Forecasting the Payment Card Market in Japan 2

Competitor and product developments in Japan 3

Contactless Mobile Online and Prepaid Payments 3

Table of Contents 5

Table of Figures 5

Table of Tables 6

Sizing and Forecasting the Payment Card Market in Japan 7

Overview 7

Structure of the Japanese payment cards market 9

Demand for debit is weak, partly due to the structure of credit repayments 11

Key macroeconomic and consumer data 13

Macro-economic trends and performance 13

GDP 14

Unemployment 15

Real GDP growth 16

Inflation 17

Demographic and consumer trends 18

Regulatory environment 19

The payments market is regulated by the Japanese Financial Services Authority 19

Credit card issuers have always faced heavy restrictions on lending and borrowing rates 19

The revised Money Lending Business Law became fully enacted in June 2010 19

The consumer credit market is experiencing dramatic shifts as a result of the new law 20

Prepaid cards are also affected by tight regulations 20

Sizing the payment card market in Japan 21

Size and performance of the payment card market 21

Penetration of payment cards 21

Number of payment cards in issue by type 25

Number of payment card transactions 26

Value of payment card transactions 33

Trends in payment card use compared to other countries 39

Credit card balances outstanding, revolve rates, usage and repayment behavior 44

ATM and POS terminal numbers 48

Competitor and Product Developments in Japan 50

Overview 50

Profiles of key Japanese players 50

JCB 51

Sumitomo Mitsui Financial Group 51

Mitsubishi UFJ Financial Group 51

Credit Saison 52

Aeon Credit Service 52

Rakuten 52

Western players 53

Card issuer market shares and performance 54

Credit card market shares 54

Number of credit cards in issue by brand 54

Number of transactions by brand 55

Value of transactions by brand 56

Balances outstanding and card repayment rates by brand 56

Charge and deferred-debit card market shares 59

Product design and issuer strategy in Japan 60

Credit card product strategy 60

Card product features by brand 60

Usage trends by brand 64

Leading revolving credit products and price points 65

Leading loyalty programmes 66

Card scheme market shares and developments 66

Major card scheme developments 66

Pay now card scheme shares 67

Number of cards in issue 67

Value of transactions 68

Revolving credit card scheme shares 69

Number of cards in issue 69

Value of transactions 70

Charge and deferred-debit card scheme shares 71

Number of cards in issue 71

Value of transactions 72

Forecasting the payment card market in Japan 73

Forecasting the pay now card market 73

Forecasting the revolving credit card market 74

Forecasting the charge and deferred-debit card market 76

Contactless, Mobile, Online and Prepaid Payments 77

Overview 77

Alternative payments are now mainstream 78

Japan has the most advanced e-money market in the world 78

e-money can be used on cards or phones 78

The majority of consumers now use e-money 79

There were 105 million e-money cards in issue by March 2009 81

Transaction values and volumes are also rising as consumers spend more using e-money 82

The majority of e-money transactions are for less than JPY1,000 83

Most e-money re-loads are for a value between JPY1,000 to JPY5,000 84

Although characterized by a variety of players, e-money is dominated by a select few firms 86

Branding remains a critical feature of the e-money market 87

Transport related cards hold a regional presence 88

Suica leads the market for e-money, with a 30.3% share of the market in H1 2009 89

Convenience is the primary driver of e-money use in Japan 91

Mobile payments remain niche in Japan 94

NTT DoCoMo's success in mobile has been driven by its effective domestic monopoly 94

Mobile players are focusing on incentivising use 97

FeliCa's dominant position may be a drawback 97

Online spending remains relatively low in relation to Japan's online presence 98

30.2% of all online shopping in Japan is for airline tickets and hotels 98

Credit and debit use online in Japan are at the extremes when compared to other markets 100

Japan holds several lessons for other regions 103

A sense of convenience is critical 103

Technology is not enough 104

Partnerships are essential to gaining mass acceptance 104

Appendix 105

Supplementary data 105

Definitions 113

AAGR 113

Affinity card 113

CAGR 113

Co-branded card 113

Credit card 113

Deferred-debit and charge card 113

EMV 113

EPC 113

ePurse 114

Merchant service charge 114

Pay now cards 114

POS terminal 114

Private-label cards 114

Methodology 114

Cards and payments database 114

Financial Services Consumer Insight is new to our offering, providing new and valuable insight 115

Forecasting methodology 115

Further reading 116

Ask the analyst 117

Datamonitor consulting 117

Disclaimer 117

List of Tables

Table 1: Japan - macro-economic indicators 13

Table 2: Japan - demographics and consumer trends 18

Table 3: A selection of key credit card fees, APR's and product features 66

Table 4: Datamonitor's forecast for the pay now card market, 2008-14f 74

Table 5: Datamonitor's forecast for the credit card market, 2008-14f 75

Table 6: Datamonitor's forecast for the deferred-debit and charge card market, 2008-14f 76

Table 7: GDP for 2008 by country 105

Table 8: Unemployment and unemployment rates in Asia-pacific 105

Table 9: Japan: GDP growth 2005-09 105

Table 10: Card penetration in Asia-pacific 106

Table 11: Japan: inflation (% change) 106

Table 12: Transaction split by merchant category in Japan 107

Table 13: Average transaction value and frequency of use for pay now cards in Asia-pacific 107

Table 14: Average transaction value and frequency of use for pay later cards in Asia-pacific 108

Table 15: Number of ATMs: Asia-pacific 108

Table 16: Population per ATM in Asia-pacific countries 108

Table 17: Number of POS terminals: Asia-pacific 109

Table 18: Population per POS terminal in Asia-pacific countries 109

Table 19: Balances outstanding and revolve rates, 2008 109

Table 20: Number of e-money cards, mobiles and terminals 110

Table 21: Volume and value of e-money transactions 111

Table 22: E-money amount outstanding 111

Table 23: E-money market shares, H1 2009 112

Table 24: Current relevant publications 116

Table 25: Future relevant publications 117

List of Figures

Figure 1: The value of banknotes and coins in Japan accounted for 17% of GDP in 2008 10

Figure 2: Cheques account for 1.5% of non-cash transactions by volume 11

Figure 3: The Japan Debit Card Promotion Council has an active online marketing presence 12

Figure 4: Japan had the highest GDP in Asia-pacific in 2009 14

Figure 5: The unemployment rate stood at 5.1% in Japan in 2009 15

Figure 6: Japan's economy shrank by 5.2% in 2009 16

Figure 7: Japan's economy hit by deflation in 2009 17

Figure 8: Japan had the highest card penetration among Asia-pacific countries, 2008 21

Figure 9: Penetration of pay now cards is higher than pay later cards in Japan, 2008 22

Figure 10: Japan had the highest penetration of pay now cards in Asia-pacific in 2008 23

Figure 11: Japan had the second highest penetration of pay later cards in Asia-pacific, 2008 24

Figure 12: Credit cards grew the fastest in Japan over 2004-08 25

Figure 13: Credit cards accounted for the largest share of cards transactions, 2004-09e* 26

Figure 14: Payments cards were used more at the POS than at ATMs in Japan 27

Figure 15: Pay later cards are majorly used to buy food & drink in Japan 28

Figure 16: Pay now cards usage constantly declined in Japan during 2004-08 30

Figure 17: Transactions made at ATM showed a downward trend from 2005 to 2009e 32

Figure 18: The transaction value of pay now cards is constantly declining in Japan, 2004-09e* 34

Figure 19: The value of ATM transactions has declined substantially in Japan over the last five years 35

Figure 20: Flight and hotels account for the greatest transaction value in Japan 36

Figure 21: Average transaction values were highest for pay now cards, 2004-09e* 37

Figure 22: Average transaction value at ATMs was higher than at the POS in Japan, 2004-09e 38

Figure 23: Asia-pacific countries vary significantly in terms of frequency of use and transaction value of pay now cards, 2008 39

Figure 24: ATM transactions accounted for the greatest turnover per pay now card in Japan, 2008 40

Figure 25: The average value and frequency of use of pay later at the POS is in line with the asia-pac average 41

Figure 26: Turnover per pay later card was highest at the ATMs in APAC region, 2008 42

Figure 27: In most Asia-pacific countries, the transaction value of pay later cards is highest for booking flights & hotels 43

Figure 28: 51% of Japanese credit cards are seen as primary by consumers 44

Figure 29: Japan stood out in terms of cards usage in Asia-pacific region 45

Figure 30: The revolve rates per outstanding balance range between 3%-13% across APAC countries 46

Figure 31: 83.5% of consumers in Japan pay off their balance in full each month 47

Figure 32: The ATM terminals grew at a CAGR of just 0.5% in Japan during 2004-2008 48

Figure 33: The POS terminals grew at a CAGR of just 8.2% in Japan during 2004-2008 49

Figure 34: JCB was the leading credit card issuer in Japan 54

Figure 35: JCB has the highest volume of transactions, but a low level of use per card 55

Figure 36: JCB held the highest value of transactions with 94.3 billion 56

Figure 37: Revolve rates ranged between 0% - 7% in Japan, H1 2009 57

Figure 38: Most of the consumers pay off their credit cards in full in Japan 58

Figure 39: JCB was the largest charge and deferred-debit card issuer in Japan 59

Figure 40: Rewards/loyalty points was the most prevalent card feature in Asia-pacific 60

Figure 41: Reward/ loyalty points was the most dominant card feature in Japanese market 61

Figure 42: Japan had the highest number of standard-branded cards among APAC countries 62

Figure 43: Half of the Citibank' and MUFG card' were banded as gold cards in Japan 63

Figure 44: Card primacy levels vary strongly by brand 64

Figure 45: J Debit was the only pay now scheme in Japan 67

Figure 46: The value of transaction for pay now cards declined by a negative CAGR of 7.9% over 2004-2008 68

Figure 47: Visa was the dominant credit card scheme in Japan 69

Figure 48: JCB accounted for the maximum value of transactions in Japan 70

Figure 49: Visa was the most dominant scheme in the Japanese deferred-debit and charge card market 71

Figure 50: Visa was the dominant scheme in terms of value of transaction in Japan 72

Figure 51: Pay now cards in issue are expected to increase by 0.3% during 2009-2014 73

Figure 52: The credit card market in Japan is expected to grow by a CAGR of 2.3% during 2009-2014 74

Figure 53: Charge and deferred-debit will continue to grow through to 2014 76

Figure 54: e-money can be used on a variety of terminals and devices 79

Figure 55: 57% of Japanese consumers now use electronic cash 80

Figure 56: 55% of e-money users have been using it for more than two years 81

Figure 57: There were over 103 million e-money contactless cards in issue as of March 2009 82

Figure 58: There were 1.18 billion e-money transactions between April 2008 and March 2009 83

Figure 59: 53% of consumers spend an average of JPY1,000 or less per e-money transaction 84

Figure 60: 60.3% of consumers load an average of JPY1,001-5,000 on their e-money wallets 85

Figure 61: Outstanding e-money totaled JPY92.2 billion in March 2009 86

Figure 62: e-money cards often have a strong brand identity 87

Figure 63: Transport orientated cards are often partnered with other cards, including for e-money acceptance 89

Figure 64: The market is dominated by Suica and Edy, both of which have around 31 million cards in issue 90

Figure 65: Convenience remains the key draw for Japanese consumers in using e-money 92

Figure 66: 19.2% of e-money users feel it does not need any improvements 93

Figure 67: 60.5% of non-users of e-money claim they simply do not need it 94

Figure 68: DoCoMo has leveraged its market power to develop a multi-functional mobile payment service 95

Figure 69: Two-thirds of consumers do not make use of the contactless functions on their phones 97

Figure 70: Consumers spent 54.9 billion on airline tickets and hotels in 2009 99

Figure 71: The value of spending per online shopper is higher than the global average 100

Figure 72: 66.1% of online purchases are made with credit cards 101

Figure 73: Debit cards account for only 2.8% of online spending in Japan 102

Figure 74: Bank transfers and cash on delivery accounted for 22.8% of online spending 103

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