Market Overview

Japan's e-money and code-based payments market grew by 13.3% year-over-year to 38,315,694 million yen in FY2025.

Market growth has been driven primarily by government initiatives promoting cashless transactions. Code-based payments have served as the main catalysts, fueled by an exponential rise in merchant adoption, user uptake, and expansion into e-commerce. Meanwhile, proprietary stored-value e-money —traditionally closed-loop tools used by retailers and restaurants for customer retention and promotions—are increasingly utilized for regional community currencies and digital gift vouchers. Conversely, contactless IC-based e-money is experiencing slower growth, even though its transaction speed and tap-to-go convenience remain popular.

Furthermore, adoption of other payment methods is also reinforced by smartphone app enhancements and a wider range of instant top-up methods, such as linked bank accounts and credit cards.

Noteworthy Topics

Progress in The Shift from E-Money to Code-Based Payments

Service operators of contactless IC-based e-money are increasingly expanding its usability and enhancing its functionality by integrating traditional tap-to-pay methods with code-based payments. For example, some systems now allow users to transfer balances between code-based-based payment services and contactless IC e-money. Integrating these two payment methods within a single app or service platform provides users with greater convenience and flexibility.

As smartphone-based payments become more widespread, the share of transactions conducted using contactless IC-based e-money is expected to decline. Nevertheless, contactless IC-based e-money is likely to remain widely used for transit and everyday low-value payments, supported by its fast transaction processing and the extensive network of merchants that already accept the technology.

Future Outlook

The e-money and code-based payments market is projected to expand to 63,138,778 million yen by FY2030. From a usage perspective, market growth is expected to be driven by the expansion of cashless payments into areas such as e-commerce, where adoption remains relatively limited. In terms of transaction volume, code-based payments continue to account for the largest share of the market. Meanwhile, other payment methods, including contactless IC-based e-money and proprietary stored-value e-money, are expected to maintain steady demand, supported by their convenience and established customer bases. Overall, the market is expected to continue on an upward trajectory.

Research Outline