Prepaid Cards Propel Japan Toward Cashless Society, Boosted by E-commerce Boom

Dublin, June 24, 2025 (GLOBE NEWSWIRE) -- The "Japan Prepaid Card and Digital Wallet Market Intelligence and Future Growth Dynamics Databook - Q2 2025 Update" report has been added to ResearchAndMarkets.com's offering.

The prepaid card and digital wallet market in Japan is set for substantial growth, projected to expand by 10.7% annually, reaching US$ 227.19 billion by 2025. This growth follows a robust performance from 2020 to 2024, marked by a CAGR of 12.4%, and is anticipated to continue at a CAGR of 9.3% from 2025 to 2029, potentially elevating the market to US$ 324.49 billion by the end of 2029.

Key Trends and Drivers in the Japan Prepaid Cards Sector

Japan's prepaid card market is evolving rapidly, supported by government initiatives promoting a cashless society, advancements in digital payment infrastructure, and the expanding e-commerce sector. Integrating prepaid cards with digital wallets further streams transactions, making them more convenient and secure for consumers. As businesses increasingly adopt prepaid cards for expense management, their role in corporate financial processes is expected to strengthen, driving greater efficiency and transparency.

Over the next 2-4 years, Japan's prepaid card market will likely expand across multiple sectors, with more consumers and businesses integrating these payment methods into daily financial activities. Increased competition among financial service providers will lead to enhanced prepaid solutions catering to personal and corporate users. As digital payments continue to gain traction, prepaid cards will play a crucial role in shaping Japan's evolving financial ecosystem.

Significant Growth in the Prepaid Card Market

• The primary drivers of this trend include government-led initiatives to promote a cashless society and the growing prevalence of e-commerce. Policies encouraging digital transactions and investments in payment infrastructure have facilitated the adoption of prepaid cards. Additionally, as online shopping expands, consumers increasingly use prepaid cards for secure and controlled spending, making them an essential payment option in Japan's retail landscape.
• Over the next 2-4 years, prepaid card usage is expected to grow further, supported by continuous advancements in digital payment systems. With greater familiarity and trust in cashless transactions, more consumers are likely to adopt prepaid cards for both online and in-person purchases. As financial institutions and fintech companies introduce more prepaid card solutions, this segment will continue to evolve, playing a key role in Japan's transition towards a cashless economy.

Integration of Prepaid Cards with Digital Wallets

• Prepaid card integration with digital wallets is gaining traction in Japan. This trend allows users to manage their funds more efficiently through mobile applications, enhancing convenience by enabling consumers to make seamless transactions without relying on physical cards. As more financial service providers integrate prepaid card functionalities into digital wallets, the adoption of these solutions is expected to rise.
• Key drivers behind this trend include technological advancements in mobile payments and increasing consumer preference for digital financial management. Improved security measures and faster transaction processing have made digital wallets reliable for prepaid card users. Additionally, consumers favor the ability to consolidate multiple payment methods in one platform, further driving the shift toward integrated digital payment solutions.
• Over the next 2-4 years, the integration of prepaid cards with digital wallets is expected to intensify as financial institutions and fintech companies enhance their digital offerings. As service providers introduce features such as real-time balance tracking, spending insights, and loyalty rewards, more users are likely to embrace this trend. As competition in the digital payments sector increases, financial players will continue to innovate, further shaping Japan's prepaid card ecosystem.

Corporate Adoption of Prepaid Cards for Expense Management

• Japanese businesses are increasingly adopting prepaid cards to manage corporate expenses, including employee benefits, travel allowances, and corporate gifting. These cards provide a structured way to distribute funds while reducing reliance on traditional reimbursement processes. As companies look for more efficient financial management tools, prepaid cards are essential to corporate expense strategies.
• Key drivers of this trend include operational efficiency and enhanced expense control. Prepaid cards streamline disbursement by eliminating manual cash handling and reducing administrative burdens. Additionally, they allow companies to set spending limits and monitor transactions in real time, ensuring better financial oversight and reducing unauthorized expenditures.
• Over the next 2-4 years, the use of prepaid cards for corporate expense management is expected to grow as businesses prioritize transparency and efficiency. Financial service providers will likely introduce more customized prepaid solutions tailored to specific corporate needs, further driving adoption. As a result, prepaid cards will play an increasingly important role in corporate financial management, offering businesses greater control over their spending.

Competitive Landscape of the Japan Prepaid Card Market

Japan's prepaid card market is undergoing rapid transformation, fueled by increasing digital adoption, regulatory changes, and growing competition from traditional financial institutions and fintech players. Established banks and new entrants are expanding their prepaid offerings to cater to evolving consumer and business needs. The market also sees significant consolidation through mergers and acquisitions, highlighting a push for stronger strategic positioning among key players.
Over the next 2-4 years, the prepaid card industry in Japan is expected to become even more competitive, with technological advancements driving further integration with digital payment ecosystems. Regulatory measures to enhance security and consumer protection will shape the operational landscape, influencing how prepaid card services evolve. As a result, market participants must innovate and adapt to remain competitive in Japan's evolving cashless economy.

Current Market Dynamics

• This expansion is driven by a shift towards cashless transactions, supported by government initiatives promoting digital payments and the rapid growth of e-commerce, which has increased the demand for secure and convenient payment options.

Key Players and Market Share

• The Japanese prepaid card market features a mix of established financial institutions and emerging fintech companies. Traditional players such as Seven Bank and Rakuten Bank offer various prepaid card solutions to cater to diverse customer needs.
• In addition to these incumbents, fintech firms are making significant inroads. For instance, Infcurion, a Japanese payments company, is planning an initial public offering in Tokyo in 2025 to accelerate its growth, including through mergers and acquisitions.

Recent Launches and Partnerships

• The prepaid card sector in Japan has seen strategic collaborations to enhance service offerings and expand market reach. In November 2024, Mizuho Financial Group announced plans to acquire a 15% stake in Rakuten Group's subsidiary, Rakuten Card, for 165 billion yen ($1.06 billion), further deepening their strategic alliance.
• Such collaborations indicate a trend towards consolidation and integration within the industry, as companies seek to combine resources and expertise to offer more comprehensive payment solutions to consumers and businesses.

Anticipated Market Evolution (Next 2-4 Years)

• The competitive intensity in Japan's prepaid card market will increase in the coming years. The entry of fintech companies such as Infcurion, offering diversified financial products, is expected to challenge traditional banks and drive innovation.
• Moreover, ongoing technological advancements and evolving consumer preferences for seamless digital payment solutions will likely prompt existing players to enhance their offerings. This environment is expected to foster greater competition, improving services and more consumer options.

Regulatory Changes

• Over the past year, notable regulatory developments have affected Japan's prepaid card market. The Credit Transaction Security Council of Japan announced that all online credit card payments in Japan will require Strong Customer Authentication (SCA), effective April 1, 2025. This means that all transactions that fall under the regulation's scope must be authenticated with 3D Secure.
• Additionally, the Payment Services Act has been updated to enhance consumer protection and promote innovation in the payments industry, impacting how prepaid card services are offered.

This report provides a detailed data-centric analysis of the prepaid card and digital wallet industry in Japan, covering market opportunities and analysis across a range of prepaid card and digital wallet domains.

Company Coverage Includes:

• Seven Bank
• Rakuten Group
• Mizuho Financial Group
• Infcurion

Key Attributes:

Report Scope

This report offers an in-depth, data-driven examination of prepaid payment instruments, focusing on expenditures via prepaid cards and digital wallets within both retail and corporate consumer sectors. It also presents an overview of consumer behavior and retail spending patterns in Japan. The report includes a detailed breakdown of key market segments for each country.

With over 80+ country-level key performance indicators (KPIs), the report provides a thorough understanding of market dynamics in the prepaid card and digital wallet sectors:

• Japan Prepaid Payment Instrument Market Size and Forecast
• Japan Digital Wallet Market Size and Forecast
• Japan Digital Wallet Market Size and Forecast by Key Segments
• Japan Digital Wallet Retail Spend Dynamics
• Japan Prepaid Card Industry Market Attractiveness
• Japan Open Loop Prepaid Card Future Growth Dynamics
• Japan Closed Loop Prepaid Card Future Growth Dynamics
• Japan Prepaid Card Consumer Usage Trends
• Japan Prepaid Card Retail Spend Dynamics
• 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
• Gift Card Market Size and Forecast by Consumer Segments
• Gift Card Market Share Analysis by Retail Categories
• Japan Entertainment and Gaming Prepaid Card Market Size and Forecast
• Japan Teen and Campus Prepaid Card Market Size and Forecast
• Japan Business and Administrative Expense Prepaid Card Market Size and Forecast
• Japan Payroll Prepaid Card Market Size and Forecast
• Japan Meal Prepaid Card Market Size and Forecast
• Japan Travel Forex Prepaid Card Market Size and Forecast
• Japan Transit and Tolls 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
• Japan Virtual Prepaid Card Industry Market Attractiveness
• Japan Virtual Prepaid Card Market Size by Key Categories

For more information about this report visit https://www.researchandmarkets.com/r/oy63e8

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• Japanese Prepaid Card and Digital Wallet Market