Code-based Mobile Payment Market in Japan: Key Research Findings 2021
Domestic Code-based Mobile Payment Market for FY2020 Expanded to 6,121,600 Million Yen
Yano Research Institute (the President, Takashi Mizukoshi) has carried out a survey on the domestic market of code-based mobile payments and other contactless payments, and found out the current status, the trends at market players, and future perspectives. This press release announces the analysis of the domestic code-based mobile payment market.
Domestic code-based mobile payment market is valued at 6,121,600 million yen for FY2020 (based on the billings at service providers).
Code-based mobile payment providers have been growing their services by introducing incentives for users and by not charging usage fee for participating merchants. As many service providers continue to provide services without charge, locations and opportunities that accept code-based mobile payment is expected to expand. Under the circumstances, the code-based mobile payment market, which consists of QR code* payment and barcode payment, is increasing rapidly.
* "QR code” is a registered trademark of DENSO WAVE INCORPORATED.
Mobile Apps Increase Usability of Code-based Payments
COVID-19 pandemic increased the needs at physical stores to sustain customer engagement. Connecting with customers via mobile app is preferable for the stores. For this reason, there is a trend at cashless payment service providers to focus on offering mobile apps.
In particular, code-based mobile payment providers have been attempting to increase physical store traffic by distributing special-offer coupons and sending messages from participating merchant to app users.
Along with proliferation of code-based mobile payment users, code-based payment service providers may accelerate OMO (Online Merges with Offline) approach, connecting offline and online traffic by, for instance, posting in-app advertising paid by participating merchants.
The code-based mobile payment market is projected to soar to 12,397,600 million yen by FY2025. COVID-19 crisis has given momentum to the rise of code-based mobile payments as the demand for cashless payment method rose at both stores and at users to avoid infections. Through dissemination of cashless payment methods, use of code-based mobile payment is expected to grow more.
In addition, various services became available on code-based payment apps. It is trending to aim at becoming a super app by bundling service functions such as financial services and non-payment services like restaurant pre-order and taxi booking to payment apps. Penetration of mini apps* as a part of everyday life and code-based mobile payment as a daily cashless payment method will contribute to significant growth of the market.
To enhance a point of contact with customers, it is anticipated that code-based mobile payment service providers will focus on enhancing features of their apps. Against the backdrop of improvements in convenience by reinforced functionalities of mini apps, the user of code-based mobile payments is expected to increase further.
*Mini apps indicate little downloadable apps that run inside another larger app. The larger software platform that hosts and supports mini apps is called a super app.
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