Japan Prepaid Cards and Digital Wallets Market Report 2022: Mobile Wallet Companies Are Integrating Contactless Technologies into Their Prepaid Cards to Provide a More Versatile Payment Experience | News

DUBLIN, March 9, 2022 /PRNewswire/ — The “Data Book on Business and Investment Opportunities of Prepaid Cards and Digital Wallets in Japan – Market Size and Forecast, Consumer Attitude and Behavior, Retail Spending” report has been added to ResearchAndMarkets.comit’s offer.

The prepaid card market (in value) in Japan increased at a CAGR of 8.2% over the period 2017-2021. During the forecast period of 2022 to 2026, the market is expected to register a CAGR of 10.9%, growing from US$166.00 billion in 2022 to reach US$250.87 billion by 2026.

With the onset of the pandemic, the consumer preference model shifted towards cashless payments in Japan. Additionally, millennials in Japan become a more important part of the consumer economy. They demanded a transition to match their tech-friendly habits, which further boosted cashless payment methods in the country.

Too, Japan has the fastest growing e-commerce market and is the fourth largest in the world. With the growing number of consumers making payments online during the pandemic, the country has seen a high adoption rate of prepaid cards in the country. Moreover, hypermarkets, supermarkets, convenience stores have played a vital role in the growth of the prepaid card market. These retail stores offer loyalty programs and rewards programs, which has encouraged consumers to adopt these cashless methods, giving new impetus to the prepaid card market in Japan.

Moreover, in Japan, prepaid cards are used in various micropayments such as retail payments, contactless transport products such as prepaid transport ticketing. Therefore, traders are also trying to expand their products in networks, such as airports, highway gas stations, etc.

In Japan2021 has seen an increase in mobile payment activities, which has further given impetus to various business strategies in the country, bringing growth to the prepaid market.

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Japanese prepaid card companies integrate with mobile wallet companies to attract more consumers

With the younger generation being drawn to digital payments, Japanese prepayment companies are embarking on partnerships with mobile wallet companies to increase consumer acceptability, thereby increasing the customer base in the country.

  • In October 2021, Japanese prepaid cards WAON and nanaco launched Apple Pay in these prepaid cards to bring e-money systems into the fold. Initially, these prepaid cards were used by Google Pay users, but thanks to this partnership, the WAON from Aeon and the nanaco from Seven & i Holdings are now also available for iPhone and Apple Watch users.
  • Additionally, the company will allow users to directly transfer plastic cards to wallets in iOS 15, an available feature specific to this platform. This is useful for those who prefer to top up with cash rather than a credit card stored in their wallet. Additionally, WAON and nanaco will allow adding new cards directly to the wallet, and this can be done without creating an account.
  • Japanese WAON card users benefit from the “e-Money” option in the Wallet app. Adding the card will provide users with features such as viewing transaction history, auto-charging cards, earning double card points, and more.

Japanese mobile wallet companies launch physical prepaid cards to increase customer base

Mobile wallet companies have extended their product portfolio with physical cards to attract more customers. With older people in the Japanese population, this strategy may work with older citizens who still rely on cash and physical cards. For example,

  • In June 2021, Mixi’s “6gram” (Rokugram) mobile wallet launched physical prepaid cards compatible with Visa’s touch payment. These cards allow the user to access the 6 gram wallet balance and are also available at domestic and overseas Visa member stores.
  • The prepaid card has no card number mentioned on the card and can be confirmed from the 6gram app on the smartphone. This is done with the security of the cardholder in mind.
  • The card can be issued from the app itself, and the fees are 600 yen, taxes included. In addition, the company does not charge any annual membership fees and the usage limit is 500,000 yen.

Mobile wallet companies are integrating contactless technologies into their prepaid cards to provide a more versatile payment experience

With the changing payment landscape of the Japanese economy, mobile wallet companies are launching prepaid cards and integrating smart payment solutions to move away from cash and also expand their customer base.

  • In August 2021Mixi’s “6gram” mobile wallet has selected Idemia, a global leader in Augmented Identity, to launch the first 6gram Real Card with an integrated cashless payment experience.
  • The card is a physical VISA contactless prepaid card that is connected to 6gram users’ e-wallet accounts. The card is based on IDEMIA’s extensive personalization technologies which provide the card with a unique transparent appearance.
  • The new card also incorporates IDEMIA’s card activation technology called Card Connect which provides consumers with advanced banking features including easy card activation and customer authentication.
  • Along with that, the card also works for retail payments and ATMs.

Scope

Japan Digital Wallet Market Size and Forecast

  • Transaction value trend analysis
  • Trading volume trend analysis
  • Average value per transaction

Japan Digital Wallet Market Size and Forecast by Key Segments

  • Retail purchases (value, volume, average value)
  • Trip (value, volume, average value)
  • Entertainment and games (value, volume, average value)
  • Restaurant (value, volume, average value)
  • Recharge and Payment of bills (Value, Volume, Average Value)

Market attractiveness of the prepaid card industry in Japan

  • Load value trend analysis
  • Transaction value trend analysis
  • Trading volume trend analysis
  • Average value per transaction
  • Number of cards

Market Share Analysis by Functional Attributes – Open Loop vs Closed Loop, 2016 – 2025

Analysis of market shares by categories of prepaid cards

Future growth dynamics of open-loop prepaid cards in Japan, 2016 – 2025

  • Transaction value trend analysis
  • Trading volume trend analysis
  • Average value per transaction
  • Number of cards

Future growth dynamics of closed-loop prepaid cards in Japan, 2016 – 2025

  • Transaction value trend analysis
  • Trading volume trend analysis
  • Average value per transaction
  • Number of cards

Usage trends of prepaid cards in Japan

  • By age group
  • By income group
  • By gender

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

  • By Open Loop gift card
  • By closed-loop gift card
  • By Retail Consumer Segment
  • By corporate consumer segment

Gift Card Market Share Analysis by Retail Categories

Gift Card Market Share Analysis by Gifting Occasion

Gift Card Market Share Analysis by Purchase Location

Japan entertainment and gaming prepaid card market size and forecast

Japan Teen and Campus Prepaid Card Market Size and Forecast

Teen and Campus Prepaid Cards Market Size and Forecast by Functional Attribute

  • By Open Loop Teen and Campus prepaid card
  • By Closed Loop Teen and Campus prepaid card

Japan Commercial and Administrative Expense Prepaid Cards Market Size and Forecast

  • By Small Scale Business Segment
  • By intermediate business segment
  • By business sector
  • By government segment

Japan Payroll Prepaid Card Market Size and Forecast

  • By Small Scale Business Segment
  • By intermediate business segment
  • By business sector
  • By government segment

Japan Prepaid Meal Card Market Size and Forecast

  • By Small Scale Business Segment
  • By intermediate business segment
  • By business sector
  • By government segment

Japan Forex Prepaid Card Market Size and Forecast

  • By retail
  • By Small Scale Business Segment
  • By intermediate business segment
  • By business sector
  • By government segment

Japan Prepaid Transit and Toll Card Market Size and Forecast

Japan Health and Wellness Prepaid Card Market Size and Forecast

Japan Social Security and Other Government Benefit Programs Prepaid Cards Market Size and Forecast

Japan Prepaid Fuel Card Market Size and Forecast

Japan Utilities and Other Prepaid Cards Market Size and Forecast

For more information on this report, visit https://www.researchandmarkets.com/r/fv1vu2

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