, Japan
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63% of Japan's online transactions used payment cards in 2023

Credit and charge cards also held a 60.8% share.

Payment cards dominated Japan's e-commerce market in 2023, accounting for nearly 63% of online transactions, according to GlobalData. 

The report also said credit and charge cards held a 60.8% share, driven by rewards, cashback, discounts, and installment payment options. Additionally, banks are also promoting virtual credit cards for added security.

Alternative payment methods are also gaining traction, making up 28% of online transactions. PayPay is the most preferred alternative payment option, followed by international brands such as PayPal and Amazon Pay.

The sector grew by 9.1%, reaching $177.3b (JPY24.8t), fueled by a tech-savvy population, high internet penetration, and secure payment options.

“With a preference for online shopping due to its ease and time-saving benefits, Japanese consumers are embracing digital platforms, making e-commerce an integral part of their shopping experience,” said Kartik Challa, senior banking and payments analyst at GlobalData.

ALSO READ: Average retail rents rise across Japan in Q1 2024

Key shopping events like Black Friday and Cyber Monday, along with secure payment options such as Mastercard ID Check and PayPal Checkout, have boosted online shopping.

About 87.2% of Japanese consumers shopped online in the past six months, with only 5.7% reporting they never shopped online.

Challa said Japan's e-commerce market is expected to reach $249.1b (JPY34.9t) by 2028, growing at a compound annual rate of 6.7% from 2024 to 2028, driven by increasing online shopping and enhanced security measures.”

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