No.2392
04/02/2020

E-Commerce Payment Services (Payment Gateway) Market in Japan: Key Research Findings 2020

Yano Research Institute (the President, Takashi Mizukoshi) conducted a survey on the domestic market of e-commerce payment services (payment gateway), and found out the current status, the trend by market players, and future outlook. 


Transition and Forecasts on E-Commerce Payment Services Market
Transition and Forecasts on E-Commerce Payment Services Market

Market Overview

According to the data of Ministry of Economy, Trade and Industry, the domestic e-commerce market (B2C) has been continuing expansion year by year. Against a backdrop of e-commerce market growth, the e-commerce payment services market is also sustaining growth. The two markets are developing together, for instance, as payment service operators offer broader payment methods, it increases opportunities for consumers to use e-commerce, thus contributing to the advancement of e-commerce market. 
Business operators that provide payment services for e-commerce merchants, such as payment agencies and payment service providers (PSP), have been focusing mainly on web merchants; however, due to harsh competition, it is tough to make profits out of these services. Meanwhile, as new payment forms such as QR code* payments (online payments) emerge, there is a trend among payment agencies to enhance QR code payment services for online transactions. By adopting a variety of payment methods, the service providers are encouraging the use of their services to web merchants that aim to expand their customer segments.
In addition, as payment service providers for e-commerce websites are focusing on the field of inter-business dealings and payment services for B2B e-commerce websites, they pursue billing increase not only by payment services but also by other services such as streamlining e-commerce operations or financial support.  Due to these factors, the e-commerce payment services market for FY2018 (based on the billings at service providers that serve as payment agencies primarily for e-commerce websites) is projected to reach 14,161,700 million yen, 116.8% of the previous fiscal year.
* "QR code” is a registered trademark of DENSO WAVE INCORPORATED.

Noteworthy Topics

Expansion of Payment Methods like QR Code Payments (online payments)

In the background of major campaigns by QR code payment service providers and point reward system started by the government, payments via QR codes is increasing in offline transactions.
There is a growing trend among payment service providers for e-commerce websites to satisfy wide demand of web merchants by offering broader payment options, especially QR code payments (online payments). Use of QR code payments (online transactions) is expected to expand hereafter.

Future Outlook

The market of e-commerce payment services is projected to sustain stable growth for years to come. In addition to the rise of e-commerce market / promotion of e-commerce conversion, expansion of services for B2B field and service developments for brick-and-mortar shops, including automation systems like self-checkout machines and vending machines, are considered as factors driving the market growth.
Compared to product sales field, service field including digital contents business in particular has greater potential for e-commerce conversion; this filed is the key for e-commerce payment services market to expand hereon. Moreover, a rate of using payment services is forecasted to increase in the fields related to people’s lives (public utility, house rent, educational expenses, expenses for ceremonial occasions, etc.) which had been paid primarily in cash. The market size of e-commerce payment services (based on the billing at payment service providers for e-commerce websites) is expected to grow to approximately 28,000,000 million yen by FY2023.

Research Outline

1.Research Period: December 2019 to February 2020
2.Research Object: Payment service, payment gateway providers, and other related businesses (acquirers, payment facilitators, etc.) for e-commerce operations.
3.Research Methogology: Face-to-face interviews by the expert researchers, interviews by telephone/email, and literature research.

E-Commerce Payment Services (Payment Gateway) Market

E-commerce payment services including payment gateway refer to the services that go between e-commerce merchants and acquirers at which the payment takes place for e-commerce transactions.
In this research, the market size of e-commerce payment services is calculated based on the billing at service providers that serve as payment agencies primarily for e-commerce websites. As to QR code payments (online payments), only the online billing at payment agencies is included.

<Products and Services in the Market>

E-commerce payment services including payment gateway refer to the services that go between e-commerce merchants and acquirers at which the payment takes place for e-commerce transactions. In this research, the market size of e-commerce payment services is calculated based on the billing at service providers that serve as payment agencies primarily for e-commerce websites. As to QR code payments (online payments), only the online billing at payment agencies is included.

Published Report

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