Market Overview

Based on the transaction volume, the size of the QR code payment market is estimated to be worth 21.4544 trillion yen in FY2024, which is a 23.9% increase from the previous fiscal year. The market size is projected to exceed 25 trillion yen in FY2025.

QR code and barcode payments continue to grow in Japan, as many code payment providers offer large-scale point reward campaigns that give consumers cash back, and as more people opted for contactless payments than cash transactions during the pandemic, which led these payments to become common in daily life. Initially, QR code payments were used only in physical stores, including restaurants, but they have gradually been introduced also in online services, such as in ecommerce sites and mobile orders, thereby increasing their user base
Additionally, new payment schemes that allow automatic debit and partial refunds have emerged in areas where QR code payments are difficult to implement. These include continuous payments of a set amount and payments at gas stations.

Noteworthy Topics

Deregulation of Digitalized Wage Payments and Market Entry by Code Payment Providers

Traditionally, wages were paid only in cash or via bank accounts. However, revisions to the Labor Standards Act in April 2023 enabled companies to pay their employees digitally using the accounts of fund transfer service providers who were designated by the Minister of Health, Labor and Welfare (MHLW). Multiple QR code payment providers have been designated as fund transfer operators eligible for digital payroll payments after August 2024.

Since digital wage payments have just begun to be fully implemented, the case studies and usage are still limited. Digital wage payments are in the early phase of increasing awareness among employees. Nevertheless, market players foresee an increase in users of digital payroll payments. As employees become accustomed to receiving wages digitally, the use of QR code payments is expected to grow alongside wage payments.  

Future Outlook

The QR code payment market is expected to continue expanding, due to the growth in online payments and the implementation of QR code payments in new areas. The market is expected to grow to over 44 trillion yen by FY2029.

Since many QR code payment providers position online payments as the most important area, new deployments of QR code payments are likely to continue in this area. Additionally, an increase in credit card fraud resulting from stolen card numbers may cause more consumers to choose QR codes as a safer payment option. For these reasons, QR code payments are expected to expand especially for online transactions.

Research Outline