Popular Local Payment Methods and Solutions in Japan

Introduction

Japan’s payment ecosystem consists of a mix of traditional payment methods with new innovation making it easier for people to choose from a variety of them according to their needs. While cash is still widely used by a majority of the population, digital payment solutions are on a growing streak. Let us have a look at some of the ways to make payments easier in Japan.

Key payment methods

Cash

Japan still remains a cash - friendly society and popular amongst small businesses and rural areas. ATMs might close early but convenience stores such as seven-eleven allow access to it through foreign cards as well.

Credit and Debit cards

Among the cashless solutions, credit and debit cards are highly used in Japan. They are accepted at most places in Japan. However, all foreign-brand issued cards might not be the ones working. It is advisable to check compatibility first and then issue a Japanese credit card.

Some major card brands in Japan

JCB - The Japan Credit Bureau is one of the most popular and largest issuers, accepted both domestically and internationally.

Visa and Mastercard - Both cards issued worldwide are accepted in Japan making transactions easier and smooth.

Revolut - Many foreigners prefer Revolut which is a virtual card and offers diverse solutions for payments domestically and internationally. It is considered to be an English- friendly alternative.

IC Cards / Transit Cards

These cards were initially designed for public transport but are now used widely at convenience stores, taxis, vending machines. Cards like Suica, PASMO are popular and can be used to make payments as a resident or even as a traveller.

Digital wallets and Mobile payments

Some mobile payment options include PayPay, LINE Pay, Rakuten Pay. Though some app options for digital payment may not be available globally but once set up, they are extremely useful. They are on the rise in the Japanese economy and are being embraced by the population rapidly. They use QR codes to pay.

Konbini - Convenience store payments

In Japanese, ‘Konbini’ refers to a convenience store. They allow customers to pay online bills and purchases by receiving a code or a receipt. It is paid through cash to a cashier or a self-service machine.

Mobile carriers

These are services offered in Japan which provide customers an alternative to pay and purchase through their monthly phone bill. Some options include NTT Docomo, Rakuten Mobile, SoftBank Corp.

Best Digital Payment Solutions in Japan

Digital and Mobile Payment apps

PayPay

It has the largest user base in Japan, offering cashback and rewards as well.
It works on the QR code system and is accepted at convenience stores, restaurants, and online markets.
Can be connected to your credit card, bank account or a prepaid balance.

LINE Pay

LINE Pay is an app integrated with Japan’s top messaging app. It offers peer to peer transfer, store and online payment solutions.

Rakuten Pay

This app works best with Rakuten users and its ecosystem. It offers Rakuten points which is beneficial and is accepted at stores and online shops like Ichiban and Rakuten.

For users who prefer seamless tap and go solutions, IC cards as mentioned before are also widely used and are an easy way.

^{"A truly global payment solution is not about replacing existing methods but enhancing them. At TransFi, we integrate with the most widely used local payment options in Japan, ensuring businesses and consumers have access to frictionless transactions without disrupting their preferred ways of paying."}^{- Rahul Sahni, COO & CPO TransFi}

Best Online Payment getaways for businesses in Japan

Businesses have different requirements to accept payments and one needs a reliable platform for transactions and transfer services. Here are some online payment getaways for the same which provide secure and a seamless experience.

Komoju (By Degica)

Komoju is known best for International E-commerce supporting both domestic and international payments. Widely used methods include Visa, Mastercard, JCB.

SB Payment Service

Backed by SoftBank, this payment service offers secure and scalable solutions supporting credit cards, carrier billing as well as e-money. It is best advisable for large businesses and companies working on a large scale.

TransFi

TransFi is a global payment company with API integration. It is best used for startups, enterprises and online platforms supporting 250+ payment methods, 70+ country and 40+ currency.

Rakuten

Similar to Rakuten Pay, it provides benefits to millions of Rakuten users with points and rewards. It is known best for businesses already linked with Rakuten Ichiba or Rakuten Bank.

GMO

GMO offers credit card tokenization along with AI driven data, fraud detection etc. It is considered best for companies with membership model having recurring payments with subscriptions.

How to accept digital payments in Japan

Choose a right payment platform and method

Depending on your needs and requirements and your role in the economy, you can choose digital payments from the ones mentioned above.

Register with a payment provider

To accept digital payments, a payment processor is needed. Some options include TransFi, PayPay for business, LINE Pay for business, Komoju.

3. Set up your payment system

According the chosen provider, you would need to take certain steps,

For QR codes, register and receive a QR code through the provider. You can display it at your store or website.
For NFCs, installing a NFC-enabled POS terminal is necessary.
For online payment getaways, integrating the payment system in your website is necessary

Optimization of payment methods

Once you are all set, it is important to enhance your payment methods and make them clearly visible at checkout.
Advertise the rewards and cashback that providers offer.
Ensure smooth transaction and experience for the user by monitoring trends.

Trends in adoption of cashless payments in Japan

Recently, there has been a growth in cashless payments in the Japanese economy. The government too aims to promote it. While the older generation still prefers the traditional cash ways, the younger generation widely uses these cashless methods

Government Policies and initiatives

The Japanese government has launched the ‘Cashless Japan’ initiative to promote digital payments.
Tax incentives and subsidies were given to businesses to convert to cashless payment options.

Growth in Ecommerce and Foreign influence

Online shopping, streaming platforms have seen a sudden rise after COVID and have increased demand for online payment getaways and E wallets.
To accommodate international visitors for events like Tokyo Olympics 2021, there was a need for cashless payments.

Challenges in Cashless adoption

Strong cash culture : Due to its security, reliability and cultural influence, many people prefer cash. Cash discounts are also offered to avoid transaction fees.
Infrastructure in rural areas : Limited infrastructure in rural areas still makes it difficult to adopt the new payment methods.
Small business : Many small businesses avoid these mediums to not pay transaction fees and setup costs.

Transfer you money in more reliable ways, while saving on global transfers across 40+ currencies, check out - Multi-Currency Automated Bulk Vendor Payments, Freelancer Payouts | API Integration

Also accept payments through Transfi’s - Collect Payments Online with Automated Reminders & Real-Time Tracking

Conclusion

Despite certain challenges due to cultural influence, resistance from small businesses, and other infrastructural obstacles, cashless payments are growing more so than ever with innovations which aim to provide convenience, security and efficiency. Adopting to these ways is no longer a choice but a necessity.

Follow up to our intelligent and secure payment solution, Best Payment Gateway Solutions: Secure, Multi-Currency, & Instant Payments

Frequently Asked Questions (FAQs)

What are some payment methods in Japan?

Cash
Credit and Debit cards
IC/ Transit Cards
Digital wallet and mobile payments
Konbini
Mobile Carriers

What are some good digital payment apps?

PayPay
LINE Pay
Rakuten Pay
TransFi

What are some good payment getaways for businesses in Japan?

Komoju (By Degica)
SB Payment Service
TransFi
Rakuten
GMO

How to accept payments in Japan?

Choose a right payment platform and method
Register with a payment provider
Set up your payment system
Optimization of payment methods

What are some challenges in adopting cashless methods?

Strong cash culture
Limited Infrastructure in rural areas
Avoidance by small business

Buy & Sell Digital Assets

Table of Contents

Suggested Article

Explore our products

Payouts

Make global payments at the speed of a click

Collections

Accept payments, remove borders.

Ramp

Unlock Seamless Digital Currency Transactions Anywhere

Buy & Sell Digital Assets

Effortless Cross-Border Payment Collections

As the world becomes more interconnected and businesses engage in global trade, the seamless collection of payments from across the globe is increasingly important. Whether you're an eCommerce merchant, a freelancer, or a global enterprise, TransFi’s Collections make collecting payments from customers and partners worldwide not only easy but also secure and efficient. TransFi eliminates unnecessary delays and currency exchange complexities, ensuring your funds are always readily accessible. Our Collections product provides a fully compliant, scalable payment infrastructure with support for over 50 currencies, offering instant settlements in stablecoins or other fiat and digital currencies.

By using TransFi’s Collections, businesses can provide their customers with easy-to-use and familiar local payment options. Our Collections product not only automates business payments but also streamlines global transactions, ensuring the utmost efficiency and reliability for businesses worldwide.

Global Payment Collection, Simplified

Due to differences in regulations, methods of payment, and currency exchange rates, international payments can be difficult to manage. TransFi Collections overcomes these barriers by providing a single platform for companies that allows for multiple methods of payment, such as bank transfers, e-wallets, and stablecoin settlements. This enhances operational efficiency and reduces manual work by allowing businesses to track, manage and reconcile payments through a single dashboard.

TransFi allows businesses to automatically generate and manage invoices, attach supporting documents, and issue reminders to customers to foster effective collections. This proactive approach reduces payment disputes and delays, all while improving cashflow and financial management.

Seamless Payment Collection Experience for Businesses and Customers

TransFi Collections is designed to give businesses an efficient and smooth payment solution with the assurance of a secure and frictionless customer experience. Through our platform, businesses can accept payments in local currencies and convert automatically to stablecoins or fiat, making the hassles of currency exchange a thing of the past. With rapid and trusted settlement, businesses do not have to wait for slow international banking processing times anymore, gaining quicker access to funds. Our APIs can also be incorporated directly within the platforms of businesses, minimizing manual intervention and facilitating payment processing. TransFi Collections also provides real-time insight into transactions using different analytics and reporting tools, empowering businesses with key insights. No matter your requirement, be it managing recurring payments, processing single invoices, or dealing with bulk collections, our solution automates payment workflows to reduce administrative efforts and maximize efficiency. By simplifying the payment processes for both companies and their clients, TransFi Collections optimizes financial operations so that firms can concentrate on development and customer satisfaction without worrying about delays in settlement or complicated integrations.

Benefits of Partnering with TransFi for Cross- Border Payment Collections

Collaborating with TransFi for cross-border payment collections guarantees an efficient and seamless process for companies across the world. With borderless payment collection, companies can receive payments anywhere in the world without having to go through different banking networks or paying high conversion charges. TransFi Collections allows companies to collect money from foreign customers through local payment channels, thus providing greater reach and conversion rates. Real-time settlements remove the delays of traditional banking and allow payments to be made in stablecoins or fiat instantly, providing continuous cash flow. Automated invoice processing streamlines payment processes, saving manual labor and boosting efficiency by creating invoices, adding required documents, and sending timely reminders. Scalable API integration enables businesses to seamlessly integrate TransFi Collections into their current platforms, making global payment collection scalable and efficient. Advanced security and compliance provide the assurance that all transactions are encrypted, secure, and regulated to the highest standards. TransFi Collections is not merely a payment gateway but a full suite of solutions empowering businesses with scalable, compliant, and efficient payment collection services. Whether you collect payments from suppliers, freelancers, or international customers, our platform provides timely, cost-saving, and secure transactions. Step into a digital future of payments with TransFi and feel the force of borderless, seamless collections.

Empower Your Business with TransFi Payment Collections

TransFi Collections is not only a payment gateway but a complete solution that empowers businesses operating across borders with secure, cost-effective, compliant, as well as scalable payment collection tools. From payment collections for goods and services to e-commerce transactions, TransFi Collections provides effortless, secure, and instantaneous settlements.

With TransFi, businesses can experience the future of digital payments and the power of borderless and hassle-free collections. Our user-friendly dashboard facilitates seamless transactions and allows businesses to collect payments against goods and services, experiencing transaction speeds in seconds. Freelancers and influencers can also benefit from real-time transactions, enhancing the efficiency of their global payment collections. Using our secure and scalable stack, e-commerce businesses can achieve 90%+ conversion rates, 99%+ uptime, and low latency, ensuring enterprise-level performance.

Integrate TransFi Collections with your business and experience secure, seamless, and scalable payments that are not only efficient and reliable but also globally compliant.