Japan Mobile Payments Market Size, Share, and COVID-19 Impact Analysis, By Type (Proximity Payments, Remote Payments, Mobile Banking), By Technology (NFC, QR Code, Mobile Wallets), and Japan Mobile Payments Market Insights, Industry Trend, Forecasts to 2035

Japan Mobile Payments Market Insights Forecasts to 2035

• The Japan Mobile Payments Market Size Was Estimated at USD 171 Billion in 2024
• The Market Size is Expected to Grow at a CAGR of around 24.90% from 2025 to 2035
• The Japan Mobile Payments Market Size is Expected to Reach USD 1973 Billion by 2035

According to a research report published by Spherical Insights & Consulting, the Japan Mobile Payments Market is anticipated to reach USD 1973 billion by 2035, growing at a CAGR of 24.90% from 2025 to 2035.  The mobile payments sector in Japan is growing quickly due to multiple elements that include the government's cashless vision goal, increasing smartphone usage, fast and convenient payment methods, and enhanced security systems.  Additionally, the pandemic accelerated the adoption of digital payments because of the growing popularity of contactless payments.

Market Overview

Mobile devices enable customers to purchase products and services through a technology known as mobile payments, which represents the entire industry. The payment industry consists of mobile point of sale systems (mPOS) along with peer-to-peer (P2P) payment applications and near field communication (NFC) payment solutions. The mobile payments market experiences rapid expansion because of rising smartphone adoption, together with e-commerce growth and increasing consumer preference for digital and contactless payment methods. Japanese mobile payment market growth capitalizes on its mobile payment benefits, which include enhanced security alongside straightforward procedures and rapid processing and minimal costs, and the ability to operate through universal internet connections. The mobile payment sector will maintain its rising path for the following period because of increasing m-commerce activities and growing smartphone user numbers, along with Japanese businesses implementing mobile payment systems and high-speed internet being accessible everywhere.

Mobile payment services also have advanced security options such as encryption, two-factor authentication, and biometric verification, such as fingerprints or facial recognition. The security features help establish trust with users because they minimize customer concerns about fraud and data breaches, which is essential for successful mobile payment deployment that further drives market growth. Mobile payments using the quick response (QR) code are also growing in Japan. QR-based payments do not require complex infrastructure compared to other payments and are easy to use, while providing an affordable way for small and medium-sized enterprises to accept digital payments. Furthermore, the regulatory body has several initiatives to facilitate cashless transactions, such as tax deductions, incentives for electronic payments, and subsidies for businesses to add digital payments; all of which encourage consumers and businesses to adopt and accept mobile payments. In addition, as a future opportunity, there is potential for large market players to enter new sectors like government services, healthcare, and transportation, and also leverage blockchain for security and transparency, which will enhance the market growth.

Report Coverage

This research report categorizes the market for the Japan mobile payments market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Japan mobile payments market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Japan mobile payments market.

Driving Factors

Digital transformation is the predominant catalyst for market growth.  Government initiatives that encourage cashless transactions and the coupling of digital payment infrastructure with existing business systems offer tremendous opportunities for mobile payment providers to further expand services and target untapped market segments. Japan holds a leading position in smartphone and smart device use, which establishes a strong foundation for mobile payment expansion. The broad availability of advanced mobile banking applications and modern NFC-enabled smartphones, alongside cutting-edge mobile internet infrastructure, drives market growth for innovative payment approaches during the upcoming period. Japanese consumers increasingly choose contactless payment methods because these systems offer payment speed, convenience as well as superior security. Through mobile payments, customers can instantly process transactions by scanning or tapping their smartphones or wearables, which eliminates the need to handle cash or cards. Japan's mobile payment industry is experiencing rapid expansion because consumers increasingly seek secure and simple payment methods.

Restraining Factors

Despite the convenience of mobile payments, a major hindrance to the growth of the industry is attributed to rising concerns about data security and privacy. Many consumers do not feel comfortable entering personal financial information on mobile devices due to past experiences with identity theft, hacking, and data breaches. This scepticism slows rates of adoption among Japanese consumers. In addition to this, some consumers have little to no digital literacy and do not have access to adequate digital infrastructure, which restricts the mobile payments market from improving. Restricted access to banking, unreliable internet access, and a lack of cheap smartphones will also inhibit widespread use in Japan. Because of these barriers, mobile payment methods in Japan are not easily used by urban or tech-savvy users. This will continue to slow mobile payment adoption in low-income, underserved, and rural markets.

Market Segmentation

The Japan mobile payments market share is classified into type and technology.

• The proximity payments segment held the largest share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The Japan mobile payments market is segmented by type into proximity payments, remote payments, and mobile banking. Among these, the proximity payments segment held the largest share in 2024 and is expected to grow at a significant CAGR during the forecast period. Segmental growth is largely driven by the continued convergence of payment systems by retail and public transportation systems and the widespread adoption of contactless payment technology. The performance of this segment derives from ongoing technological advancements in Near Field Communication (NFC) technology, QR code systems, and integrated loyalty programs, which deliver smooth transaction processes. Users can complete secure transactions through contactless payments, resulting from sophisticated security features of the segment that include tokenisation and real-time fraud monitoring.

• The QR code segment held the largest share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The Japan mobile payments market is segmented by technology into NFC, QR code, and mobile wallets. Among these, the QR code segment held the largest share in 2024 and is expected to grow at a significant CAGR during the forecast period. Japan's specific payment environment, alongside consumer preferences for easy and protected transactions, has established QR Code technology as the dominant payment method in the market. The leadership of this segment will remain strong because of the user-friendly nature and low costs of implementing QR code payment systems, which many small and medium-sized enterprises find beneficial. QR code technology keeps advancing through better scanning performance and faster transaction processing, together with increased security features.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Japan mobile payments market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• PayPal Holdings Inc.
• JCB Co. Ltd.
• Rakuten Group Inc.
• PayPay Corporation
• Mastercard Inc.
• LINE Pay
• Apple Pay Japan
• Merpay and NTT Docomo
• Origami Pay
• Kyash
• Others

Recent Developments:

• In November 2024, PayPay now covers a broader range of merchants throughout Japan since it extended its partnership with Alipay+. By working with PayPay regional entities, Alipay+ currently provides payment services to more than 3 million local retailers. The extended partnership enables travelers to make purchases at various Japanese merchant-presented mode (MPM) establishments by using Alipay+ partner applications and scanning PayPay QR codes.
• In October 2024, JCB, the global payment organization of Japan, officially announced the availability of Google Pay to its customers. The Android smartphone owners who link their JCB Group-issued credit/debit cards to Google Pay can complete contactless transactions at JCB payment-accepting stores.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the Japan Mobile Payments Market based on the below-mentioned segments:

Japan Mobile Payments Market, By Type

• Proximity Payments
• Remote Payments
• Mobile Banking

Japan Mobile Payments Market, By Technology

• NFC
• QR Code
• Mobile Wallets