Market Overview

Alongside the expansion of physical e-commerce, the payment service provider (PSP) market has grown steadily, surpassing 40 trillion yen in FY2024. This recent momentum is fueled by service-based e-commerce and the increasing shift toward online payments for recurring expenses, such as telecommunication bills, utility bills, and taxes. Furthermore, many PSPs are prioritizing offline expansion, unattended checkout systems, and BPSP for B2B transactions—allowing businesses to pay invoices via credit card even when the vendor only accepts bank transfers.
To differentiate themselves in an increasingly competitive landscape, PSPs are evolving into comprehensive partners for merchants. They are now coupling core payment processing with value-added solutions for digital transformation (DX), marketing, and fundraising.

Noteworthy Topics

Expansion of Post-Payment Service (BNPL)

With momentum sustained, the market for post-payment services (BNPL) is approaching 1.7 trillion yen as of FY2024. 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 FY2029.

Future Outlook

The payment service provider market is projected to reach approximately 65 trillion yen by FY2029. Growth is being led primarily by the digital goods and services segment, with additional momentum coming from service-based e-commerce, recurring online payments, and the continued expansion of B2B transactions.
Looking ahead, the digital goods and services segment is expected to see particularly strong growth, as PSPs pursue strategic partnerships and acquisitions to incorporate industry-specific expertise and develop tailored solutions.
As competition intensifies, PSPs will need to differentiate themselves by offering more compelling value propositions and enhanced services that enable merchants to scale their businesses.

Research Outline