Market Overview

Payment service provider (PSP) is an intermediary that completes payment operation, primarily credit card payment and code payment, on behalf of EC site operator. With the diversification of payment methods and the expansion of service offerings, the business of PSP is sustaining momentum.

PSP supports merchants that wish to attract customers by providing broader range of payment options including code payments. PSP's service scope has expanded to include digital contents and services in addition to conventional physical goods sales. Additionally, some PSPs have extended their reach to physical stores (offline) and unmanned store with unattended checkout system, as well as the B2B transactions like BPSP* and invoice payment.

Against these backgrounds, the payment service provider market was valued at 32,251,700 million yen (114.5% of the previous fiscal year) for FY2023, and is projected to reach 37,494,400 million yen for FY2024 (116.3% of the previous fiscal year).

* BPSP is a short for Business Payment Solution Provider, a type of provider that offers B2B solution enabling payment between an enterprise (buyer) that wishes to pay by credit card and an enterprise(seller) that do not accept credit card payment. Note that in the Japanese context, BPSP refers not to a provider but for the service they provide.

Noteworthy Topics

Post-Payment Services (BNPL) on Expansion

Expanding steadily, the market for Post-Payment Services (Buy Now Pay Later; BNPL) is projected to reach 1,531,700 million yen for FY2023, up by 21.5% from the previous fiscal year.
Although BNPL primarily targeted segments without credit cards—such as younger generations and homemakers—today, credit card holders also utilize the service when checking out at e-commerce sites they do not frequently visit.

BNPL providers have been working to enhance convenience and increase average transaction values by offering installment plans, as well as expanding usage scenarios beyond physical goods to include service-based e-commerce and in-person payments. As a result of these initiatives, the BNPL market is projected to reach 2.8 trillion yen by FY2028.

Future Outlook

Led by the growth of ecommerce dealing digital goods and services segment, with additional momentum coming from the expansion of B2B transactions, the payment service provider market is projected to reach approximately 63 trillion yen by FY2028.
Payment service providers are anticipated to diversify their offerings further, incorporating value-added services beyond traditional business scope.

Research Outline