Japans Cards and Payments Industry: Emerging Opportunities, Trends, Size, Drivers, Strategies, Products and Competitive Landscape

Published: Mar, 2014 | Pages: 109 | Publisher: Timetric
Industry: Financial Services | Report Format: Electronic (PDF)

Synopsis
The report provides top-level market analysis, information and insights into Japan's cards and payments industry, including:
Current and forecast values for each category of Japan's cards and payments industry, including debit cards, credit cards, charge cards and prepaid cards
Comprehensive analysis of the industry's market attractiveness and future growth areas
Analysis of various market drivers and regulations governing Japan's cards and payments industry
Detailed analysis of the marketing strategies adopted for selling debit, credit , charge and prepaid cards used by banks and other institutions in the market
Comprehensive analysis of consumer attitudes and buying preferences for cards
The competitive landscape of Japan's cards and payments industry

Summary
During the review period, the number of cards in circulation in the channel increased at a compound annual growth rate (CAGR) of 2.94% to reach 980.9 million cards in 2013, while its value recorded a review-period CAGR of 3.45%, reaching JPY70.1 trillion (US$723.4 billion) in 2013.
The Japanese card payments channel was mainly driven by strong growth in the prepaid cards category, which registered the highest review-period CAGR of 12.68%. The share of prepaid cards category in overall card payments channel increased from 15.9% in 2009 to 22.9% in 2013. In terms of number of cards in circulation, prepaid cards increased from 139.3 million in 2009 to 224.5 million in 2013. The charge cards category recorded the second-highest review-period CAGR of 2.55%, increasing from 7.4 million cards in 2009 to 8.2 million in 2013. The debit cards category registered the slowest growth during the review period, at a CAGR of 0.46%, increasing from 412.0 million cards in 2009 to 419.7 million in 2013.
In 2009, non-cash payments in Japan were dominated by credit transfers with a total transaction value of JPY2,433.9 trillion (US$26.0 trillion), while card payments valued JPY61.2 trillion (US$654.1 billion). During the review period, card payments recorded a CAGR of 3.45%, to value JPY70.1 trillion (US$723.4 billion) in 2013, while credit transfers recorded a CAGR of 3.73%, to value JPY2,817.7 trillion (US$29.1 trillion) in 2013. Internet penetration growth and rising disposable incomes, supported by an increased consumer spending, resulted in increased online retail sales. The country's domestic business-to-business (B2B) e commerce grew to JPY262.0 trillion (US$3.3 trillion) in 2012, an increase of 101.7% compared to the previous year. Similarly, business-to-consumer (B2C) e-commerce increased by 112.5%, to reach JPY9.5 trillion (US$119.1 billion) in 2012.
Scope
This report provides a comprehensive analysis of Japan's cards and payments industry.
It provides current values for Japan's cards and payments industry for 2013, and forecast figures for 2018.
It details the different economic, infrastructural and business drivers affecting Japan's cards and payments industry.
It outlines the current regulatory framework in the industry.
It details the marketing strategies used by various banks and other institutions.
It profiles the major banks in Japan's cards and payments industry.
Reason To Buy
Make strategic business decisions using top-level historic and forecast market data related to Japan's cards and payments industry and each market within it.
Understand the key market trends and growth opportunities within Japan's cards and payments industry.
Assess the competitive dynamics in Japan's cards and payments industry.
Gain insights in to the marketing strategies used for selling various card types in Japan.
Gain insights into key regulations governing Japan's cards and payments industry.

Key Highlights
During the review period, the number of cards in circulation in the channel increased at a compound annual growth rate (CAGR) of 2.94% to reach 980.9 million cards in 2013, while its value recorded a review-period CAGR of 3.45%, reaching JPY70.1 trillion (US$723.4 billion) in 2013.
The Japanese card payments channel was mainly driven by strong growth in the prepaid cards category, which registered the highest review-period CAGR of 12.68%. The share of prepaid cards category in overall card payments channel increased from 15.9% in 2009 to 22.9% in 2013. In terms of number of cards in circulation, prepaid cards increased from 139.3 million in 2009 to 224.5 million in 2013. The charge cards category recorded the second-highest review-period CAGR of 2.55%, increasing from 7.4 million cards in 2009 to 8.2 million in 2013.
Consumers are moving to prepaid and postpaid e-money purses incorporated into payment cards and mobile phones to make fast and secure contactless transactions, both at point-of-sale (POS) terminals and online. During the review period, the transaction value of prepaid cards increased at a CAGR of 21.76%, from JPY1.3 trillion (US$14.2 billion) in 2009 to JPY2.9 trillion (US$30.1 billion) in 2013. Sony developed the chip for Japan's e-money platform which is now used in payment cards and mobile phones.
Internet penetration growth and rising disposable incomes, supported by an increased consumer spending, resulted in increased online retail sales. The country's domestic business-to-business (B2B) e commerce grew to JPY262.0 trillion (US$3.3 trillion) in 2012, an increase of 101.7% compared to the previous year. Similarly, business-to-consumer (B2C) e-commerce increased by 112.5%, to reach JPY9.5 trillion (US$119.1 billion) in 2012.

 1 Executive Summary
2 Alysis of Market Environment, Key Trends and Drivers
2.1 Payment Infrastructure and Emerging Technologies
2.1.1 Automatic Teller Machines (ATMs)
2.1.2 Point of sale (POS) termils
2.1.3 Internet penetration
2.1.4 Contactless payments
2.1.5 Mobile payments
2.2 Business Drivers
2.2.1 Growth in retail industry
2.2.2 Rising online retailing
2.3 Economic Drivers
2.3.1 Stable GDP
2.3.2 Increasing GDP per capita income
2.3.3 Low unemployment rate
3 Cards and Payments Industry Share Alysis
3.1 Industry Overview
3.1.1 Cash
3.1.2 Checks
3.1.3 Card payments
3.1.4 Credit transfers
4 Regulatory Framework and Card Fraud Statistics
4.1 Regulatory Framework
4.1.1 Foreign direct investment (FDI) regulations
4.2 Card Fraud Statistics
4.2.1 Cards-not-present fraud
4.2.2 Counterfeit cards
4.2.3 Cards lost or stolen
4.2.4 Card ID theft
5 Emerging Consumer Attitudes and Trends
5.1 Industry Segmentation and Targeting
5.1.1 Retail segment
5.1.2 Corporate segment
5.2 Travel and Tourism Spending
5.2.1 Outbound tourist trips
5.2.2 Outbound tourist spending
5.3 Retail Card Spending
5.3.1 Alysis by product category
5.3.2 Alysis by retail channel share
6 Alysis of Card Payments and Growth Prospects
6.1 Channel Share Alysis by Card Category
6.2 Size and Forecast of the Card Payments Channel
6.2.1 Alysis by number of cards in circulation
6.2.2 Alysis by transaction value
7 Alysis of Credit Card Payments and Growth Prospects
7.1 Overall Category Size and Forecast
7.1.1 Alysis by number of cards in circulation
7.1.2 Alysis by transaction value
7.1.3 Alysis by transaction volume
7.2 Transaction Share Alysis by Channel
7.2.1 Alysis by transaction value
7.2.2 Alysis by transaction volume
7.3 Persol Credit Cards Segment Size and Forecast
7.3.1 Alysis by number of cards in circulation
7.3.2 Alysis by transaction value
7.3.3 Alysis by transaction volume
7.4 Commercial Credit Cards Segment Size and Forecast
7.4.1 Alysis by number of cards in circulation
7.4.2 Alysis by transaction value
7.4.3 Alysis by transaction volume
7.5 Competitive Landscape
7.5.1 Scheme share alysis
7.5.2 Issuer share alysis
8 Alysis of Debit Card Payments and Growth Prospects
8.1 Overall Category Size and Forecast
8.1.1 Alysis by number of cards in circulation
8.1.2 Alysis by transaction value
8.1.3 Alysis by transaction volume
8.2 Transaction Share Alysis by Channel
8.2.1 Alysis by transaction value
8.2.2 Alysis by transaction volume
8.3 Competitive Landscape
8.3.1 Scheme share alysis
8.3.2 Issuer share alysis
9 Alysis of Charge Card Payments and Growth Prospects
9.1 Overall Category Size and Forecast
9.1.1 Alysis by number of cards in circulation
9.1.2 Alysis by transaction value
9.1.3 Alysis by transaction volume
9.2 Transaction Share Alysis by Channel
9.2.1 Alysis by transaction value
9.2.2 Alysis by transaction volume
9.3 Persol Charge Cards Segment Size and Forecast
9.3.1 Alysis by number of cards in circulation
9.3.2 Alysis by transaction value
9.3.3 Alysis by transaction volume
9.4 Commercial Charge Cards Segment Size and Forecast
9.4.1 Alysis by number of cards in circulation
9.4.2 Alysis by transaction value
9.4.3 Alysis by transaction volume
9.5 Competitive Landscape
9.5.1 Scheme share alysis
10 Alysis of Prepaid Card Payments and Growth Prospects
10.1 Overall Category Size and Forecast
10.1.1 Alysis by number of cards in circulation
10.1.2 Alysis by transaction value
10.2 Open-Loop Prepaid Cards Segment Size and Forecast
10.2.1 Alysis by number of cards in circulation
10.2.2 Alysis by transaction value
10.3 Closed-Loop Prepaid Cards Segment Size and Forecast
10.3.1 Alysis by number of cards in circulation
10.3.2 Alysis by transaction value
11 Merchant Acquiring
11.1 Merchant Acquirers in Japan
11.2 Company Profile of JCB
12 Company Profiles of Card Issuers
12.1 Shinsei Bank
12.1.1 Key fincials
12.1.2 Card portfolio
12.1.3 Strategies
12.2 Japan Post Bank
12.2.1 Key fincials
12.2.2 Card portfolio
12.2.3 Strategies
12.3 Citibank Japan
12.3.1 Key fincials
12.3.2 Card portfolio
12.3.3 Strategies
12.4 Credit Saison
12.4.1 Key fincials
12.4.2 Card portfolio
12.4.3 Strategies
12.5 JACCS Co., Ltd.
12.5.1 Key fincials
12.5.2 Card portfolio
12.5.3 Strategies
13 Appendix
13.1 Methodology
13.2 Contact Timetric
13.3 About Timetric
13.4 Timetric's Services
13.5 Definitions
13.6 Disclaimer


List of Tables
Table 1: Japanese Payment Channels (JPY Trillion), 2009-2013
Table 2: Market Entry Strategies of Foreign Banks in Japan
Table 3: Japanese Card Fraud (JPY Million), 2009-2013
Table 4: Cards Offered by Various Banks for Shoppers in Japan
Table 5: Cards Offered by Various Banks for HNWIs in Japan
Table 6: Cards Offered by Various Banks for Travelers in Japan
Table 7: Cards Offered by Various Banks for Young Population in Japan
Table 8: Japanese Card Spending by Retail Product Category (JPY Billion), 2008 and 2012
Table 9: Japanese Card Spending by Retail Channel (JPY Billion), 2008 and 2012
Table 10: Japanese Card Payments Channel by Card Category (Million), 2009-2018
Table 11: Japanese Card Payments Channel Size by Volume of Cards (Million), 2009-2018
Table 12: Japanese Card Payments Channel Size by Transaction Value (JPY Trillion), 2009-2018
Table 13: Japanese Card Payments Channel Size by Transaction Value (US$ Billion), 2009-2018
Table 14: Japanese Credit Cards Category Size by Volume of Cards (Million), 2009-2018
Table 15: Japanese Credit Cards Category Size by Transaction Value (JPY Trillion), 2009-2018
Table 16: Japanese Credit Cards Category Size by Transaction Value (US$ Billion), 2009-2018
Table 17: Japanese Credit Cards Category Size by Transaction Volume (Billion), 2009-2018
Table 18: Japanese Persol Credit Cards Segment Size by Volume of Cards (Million), 2009-2018
Table 19: Japanese Persol Credit Cards Segment Size by Transaction Value (JPY Trillion), 2009-2018
Table 20: Japanese Persol Credit Cards Segment Size by Transaction Value (US$ Billion), 2009-2018
Table 21: Japanese Persol Credit Cards Segment Size by Transaction Volume (Billion), 2009-2018
Table 22: Japanese Commercial Credit Cards Segment Size by Volume of Cards (Million), 2009-2018
Table 23: Japanese Commercial Credit Cards Segment Size by Transaction Value (JPY Trillion), 2009-2018
Table 24: Japanese Commercial Credit Cards Segment Size by Transaction Value (US$ Billion), 2009-2018
Table 25: Japanese Commercial Credit Cards Segment Size by Transaction Volume (Million), 2009-2018
Table 26: Japanese Debit Cards Category Size by Volume of Cards (Million), 2009-2018
Table 27: Japanese Debit Cards Category Size by Transaction Value (JPY Trillion), 2009-2018
Table 28: Japanese Debit Cards Category Size by Transaction Value (US$ Billion), 2009-2018
Table 29: Japanese Debit Cards Category Size by Transaction Volume (Million), 2009-2018
Table 30: Japanese Charge Cards Category Size by Volume of Cards (Million), 2009-2018
Table 31: Japanese Charge Cards Category Size by Transaction Value (JPY Trillion), 2009-2018
Table 32: Japanese Charge Cards Category Size by Transaction Value (US$ Billion), 2009-2018
Table 33: Japanese Charge Cards Category Size by Transaction Volume (Million), 2009-2018
Table 34: Japanese Persol Charge Cards Segment Size by Volume of Cards (Million), 2009-2018
Table 35: Japanese Persol Charge Cards Segment Size by Transaction Value (JPY Trillion), 2009-2018
Table 36: Japanese Persol Charge Cards Segment Size by Transaction Value (US$ Billion), 2009-2018
Table 37: Japanese Persol Charge Cards Segment Size by Transaction Volume (Million), 2009-2018
Table 38: Japanese Commercial Charge Cards Segment Size by Volume of Cards (Thousand), 2009-2018
Table 39: Japanese Commercial Charge Cards Segment Size by Transaction Value (JPY Billion), 2009-2018
Table 40: Japanese Commercial Charge Cards Segment Size by Transaction Value (US$ Billion), 2009-2018
Table 41: Japanese Commercial Charge Cards Segment Size by Transaction Volume (Million), 2009-2018
Table 42: Japanese Prepaid Cards Category Size by Volume of Cards (Million), 2009-2018
Table 43: Japanese Prepaid Cards Category Size by Transaction Value (JPY Trillion), 2009-2018
Table 44: Japanese Prepaid Cards Category Size by Transaction Value (US$ Billion), 2009-2018
Table 45: Japanese Open-Loop Prepaid Cards Segment Size by Volume of Cards (Million), 2009-2018
Table 46: Japanese Open-Loop Prepaid Cards Segment Size by Transaction Value (JPY Trillion), 2009-2018
Table 47: Japanese Open-Loop Prepaid Cards Segment Size by Transaction Value (US$ Billion), 2009-2018
Table 48: Japanese Closed-Loop Prepaid Cards Segment Size by Volume of Cards (Million), 2009-2018
Table 49: Japanese Closed-Loop Prepaid Cards Segment Size by Transaction Value (JPY Billion), 2009-2018
Table 50: Japanese Closed-Loop Prepaid Cards Segment Size by Transaction Value (US$ Million), 2009-2018
Table 51: List of JCB Card Issuing Partners, 2013
Table 52: Shinsei Bank - Key Fincial Indicators (JPY Billion), Year Ended March, 2012-2013
Table 53: Shinsei Bank - Card Portfolio and Key Features
Table 54: Japan Post Bank - Key Fincial Indicators (JPY Billion), Year Ended March, 2012-2013
Table 55: Japan Post Bank - Card Portfolio and Key Features
Table 56: Citibank Japan - Key Fincial Indicators (JPY Billion), Year Ended March, 2012-2013
Table 57: Citibank Japan - Card Portfolio and Key Features
Table 58: Credit Saison - Key Fincial Indicators (JPY Billion), Year Ended March, 2012-2013
Table 59: Credit Saison - Card Portfolio and Key Features
Table 60: JACCS - Key Fincial Indicators (JPY Billion), Year Ended March, 2012-2013
Table 61: JACCS - Card Portfolio and Key Features
Table 62: Key Definitions