Japan Real Time Payment Market Size (2024 - 2029)

Japan Real-Time Payment Market Analysis

The Japan Real Time Payment Market size is estimated at USD 2.04 billion in 2024, and is expected to reach USD 8.44 billion by 2029, growing at a CAGR of 32.76% during the forecast period (2024-2029).

Real-time payment systems were proliferating due to increased consumer adoption for speed and convenience and the continued shift away from cash with payment solutions enabled by innovation and regulation.

• The growing adoption of smart devices and booming online retail commerce drive the rapid adoption of real-time payments in the country. Also, the rising tide of real-time payments reflects growing consumer demand for real-time transactions, driven due to the ubiquity of smartphones and other connected devices, which have catalyzed consumer expectations for immediacy.
• Several initiatives by the Japanese government, including financial incentives, standardization, and infrastructure development, are also adding growth to the real-time payment market. For instance, the government is planning to introduce a platform for wages through a digital platform which could further contribute to the adoption among consumers. Also, the government has set a target of growing cashless payments to around 40% of all transactions by 2025, up from approximately 20%.
• However, the larger dependence of the population on cash (traditional method), cost of implementation, and low consumer demand as they prefer traditional payment systems are the factors challenging the growth of the real-time payment market in Japan.
• Several market players are expanding their offering of real-time payment systems in the country. In December 2022, Adyen launched its unified commerce solution in Japan to provide a payment platform that connects different online and offline sales channels. Such introductions from the vendors are expected to fuel the market growth during the forecast period.
• The outbreak of the COVID-19 pandemic greatly impacted the real-time payment market. With the country's focus on digital transformation and its advanced technology infrastructure, real-time payment solutions had widespread adoption. Additionally, the pandemic accelerated the trend toward cashless payment methods, leading to greater use of mobile payment solutions and e-wallets. This also helped spur innovation in the real-time payment industry as companies compete to offer more convenient and secure solutions.

Japan Real-Time Payment Industry Segmentation

Real-time payments are instant or immediate payments and are defined by the Euro Retail Payments Board (ERPB) as electronic retail payment solutions that are available 24/7/365. Immediate payments enable businesses and consumers to make and receive payments in real-time, providing convenience, speed, and faster availability of funds.

Japan's Real-Time Payment Market is segmented by Type (P2P, P2B). The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.