01💳 The makeup of cashless payments in Japan
First, the big picture. On March 31, 2026, METI announced that Japan's cashless payment ratio for 2025 was 58.0% (domestic indicator), with cashless payments totaling ¥162.7 trillion. That is up 5.2 percentage points from 52.8% the previous year (METI, March 2026). Note that a new "domestic indicator" was introduced starting that year; under the previous indicator used for international comparison, the ratio is 46.3%.
By value, credit cards are by far the backbone, at more than 80%, while code payments account for only about 10%. Code payments are much more prominent in small, high-frequency transactions, however: as discussed below, PayPay alone accounts for more than 20% of the number of cashless payments in Japan (PayPay, August 2026).
One caveat: we could find no official statistics on payment method shares limited to e-commerce and online payments. The figures above cover everything, including physical stores. In e-commerce, the credit card share may be even higher, but cash-based methods such as convenience store payment and cash on delivery also play a meaningful role. In addition, this statistic breaks payments into only four categories — credit cards, debit cards, e-money and code payments — and does not show carrier billing or convenience store payment as categories. Because we could not find official data quantifying the shares of carrier billing or convenience store payment, this article gives no figures for them and instead compares them by the role they play.
02📱 Comparing the major code (QR) payment services
PayPay is the overwhelming leader in Japan's code payment market. On August 10, 2026, PayPay announced that its registered users had passed 75 million (as of August 9, 2026). Users who have completed identity verification (eKYC) also exceed 43 million (PayPay, August 2026).
The other major code payments besides PayPay (d Barai, Rakuten Pay and au PAY) are used in connection with each company's points ecosystem. However, because each company defines its user count differently (app registrations, members, etc.) and their latest published figures are not aligned in time, this article does not compare them side by side numerically.
| Payment | Provider | Characteristics |
|---|---|---|
| PayPay | PayPay Corporation | 75+ million registered users (August 2026). Took over and consolidated domestic money transfers and payments from LINE Pay |
| d Barai (d払い) | NTT DOCOMO | d POINT ecosystem. Also supports charging to the phone bill |
| Rakuten Pay (楽天ペイ) | Rakuten Group | Rakuten Points ecosystem; linked with Rakuten Card |
| au PAY | KDDI Group | Ponta points ecosystem; linked with au mobile services |
| LINE Pay (Japan) | LINE Pay Corporation (at the time) | Japan service phased out by April 30, 2025. Balances could be transferred to PayPay (LINE Pay in Taiwan and Thailand was not affected) |
03🌏 Recommended payment setup for cross-border e-commerce
Below is a phase-by-phase payment setup for overseas companies entering the Japanese market through cross-border e-commerce (this reflects our editorial team's practical view).
Minimum setup (launch MVP)
- Credit cards (Visa/Mastercard/JCB/American Express/Diners, with EMV 3-D Secure)
- PayPay (at least one code payment, and PayPay is the flagship)
- Convenience store payment (7-Eleven / Lawson / FamilyMart, etc.)
Standard setup (launch to scale)
- Credit cards (with EMV 3-D Secure, plus Apple Pay/Google Pay integration)
- Three code payments: PayPay + Rakuten Pay + d Barai (or au PAY)
- Convenience store payment + bank transfer (Pay-easy)
- Carrier billing (DOCOMO / au / SoftBank carrier payment services)
Full setup (mature stage, high-ticket products)
- Everything above + buy-now-pay-later (Paidy / atone / NP Atobarai, etc.)
- Debit cards (younger users and people without credit cards)
- E-money and contactless payments (transit IC cards / iD / QUICPay, etc.) — when you have physical stores
- Crypto asset payments (for relevant industries)
- B2B invoice payment (net-terms / pay-later payment services)
04🔧 Implementation difficulty and how to think about costs
The table below summarizes implementation difficulty and points to note for each payment method, assuming integration through a payment service provider (PSP). Transaction fees, setup fees and payout cycles vary widely by PSP, industry, transaction volume and contract terms, and there is no official benchmark data that allows a cross-provider comparison, so this article does not give figures. The reliable approach is to get quotes from several PSPs and compare them.
| Payment | Implementation difficulty | Points to note |
|---|---|---|
| Credit cards | Low (via PSP) | EMV 3-D Secure is a prerequisite. Recurring billing is also easy to support |
| PayPay | Low | Often available through a PSP. Check support with each PSP |
| Rakuten Pay, d Barai, au PAY | Low to medium | Requires screening and a contract with each payment provider |
| Carrier billing | Medium (carrier screening) | Works well for digital content and monthly subscriptions. Fees tend to be higher than for credit cards — get a quote |
| Convenience store payment | Low | Reaches people without credit cards. Watch for the time lag before payment is confirmed |
| Buy-now-pay-later (Paidy, etc.) | Medium | Typically the BNPL provider bears the credit and non-collection risk |
| Apple Pay / Google Pay | Low (supported by PSPs) | Fees and payouts often follow your credit card terms |
| Bank transfer / Pay-easy | Low | For B2B and high-ticket products. Watch the workload of payment reconciliation |
Carrier billing reaches people who don't have credit cards and people who want to pay together with their phone bill. Even if its fees are higher than credit cards, it can be worth adding depending on the product and price point.
05💼 Comparing the major payment service providers (PSPs)
For overseas companies implementing payments in Japan, going through a payment service provider (PSP) is the realistic option. The main PSPs are summarized below. Supported payment methods and languages can change, so check each provider's official information before signing a contract.
| PSP | Characteristics | Supported payments |
|---|---|---|
| GMO Payment Gateway | Major domestic player with a strong track record among large companies | Broad coverage of major Japanese payment methods |
| SB Payment Service | SoftBank group. Strong in PayPay and carrier billing | Broad coverage of major Japanese payment methods |
| Stripe | Global coverage; well regarded for its APIs and developer experience | Credit cards + some local payment methods |
| Adyen | Unified platform for large global enterprises | Credit cards + some local payment methods |
| Square | Unifies physical stores and online | Credit cards + some local payment methods |
| PAYGENT (ペイジェント) | Payment processor for large domestic companies | Broad coverage of major Japanese payment methods |
| KOMOJU | Built for cross-border e-commerce; multilingual | Major Japanese payment methods + international payments |
06⚖️ Compliance: 3-D Secure and the main regulations
These are the main regulatory points when implementing payments in Japan. Confirm how they apply to your specific case with a lawyer or other professional.
① Installment Sales Act and EMV 3-D Secure
The Installment Sales Act (割賦販売法) requires merchants that accept credit cards to take measures to prevent unauthorized use of card numbers and related information (Installment Sales Act, Article 35-17-15). The "Credit Card Security Guidelines" (クレジットカード・セキュリティガイドライン), which set out how to meet that obligation in practice, required in principle, all e-commerce merchants to adopt EMV 3-D Secure by the end of March 2025 (Japan Consumer Credit Association (JCA, 日本クレジット協会), version 5.0). The guidelines have continued to be revised, with version 6.1 compiled in March 2026. Overseas companies should also confirm their compliance status through their PSP.
② Payment Services Act (prepaid payment instruments and money transfer)
If you issue your own points or prepaid payment instruments, a filing is required for in-house (self-issued) instruments once the unused balance exceeds a certain amount, and registration is required for third-party instruments (Payment Services Act (資金決済法), Articles 5 and 7). Offering a money transfer function requires registration as a funds transfer service provider (same Act, Article 37). Take particular care if you build your own code payment or wallet; if you simply use a PSP's payment services, this issue usually does not arise.
③ Act on Specified Commercial Transactions (mail order and subscriptions)
The 2021 amendment to the Act on Specified Commercial Transactions (特定商取引法), in force since June 2022, requires the final confirmation screen of online sales to display the quantity, price, timing and method of payment, delivery timing, application period, and matters concerning withdrawal or cancellation of the application (Act on Specified Commercial Transactions, Article 12-6; Consumer Affairs Agency (CAA, 消費者庁)). For subscriptions, it is important to clearly show the contract period, auto-renewal terms and how to cancel on this screen.
④ Act on the Protection of Personal Information
The Act on the Protection of Personal Information (APPI, 個人情報保護法) also applies to foreign businesses that handle personal information in connection with supplying goods or services to people in Japan (APPI, Article 171). In addition, providing personal data to a third party in a foreign country generally requires the individual's consent, and when obtaining that consent you must provide information such as the personal information protection system of the destination country (same Act, Article 28).
⑤ Mobile Software Competition Act (for app businesses)
Businesses that charge users inside apps should also be aware of the Mobile Software Competition Act (スマホソフトウェア競争促進法), which came fully into force on December 18, 2025. App store operators designated by the Japan Fair Trade Commission (JFTC, 公正取引委員会) — Apple Inc., iTunes K.K. and Google LLC — are in principle prohibited from preventing app businesses from using payment methods other than the store's own, or from directing users to purchase on web pages (same Act, Article 8; JFTC). Check each store's developer terms for the specific conditions and fees.
07✅ Payment checklist for cross-border e-commerce and fintech
- Have you implemented EMV 3-D Secure for credit card payments?
- Have you added PayPay as at least one code payment (and removed any remaining references to LINE Pay)?
- Have you added convenience store payment (to reach people without credit cards)?
- Does your final confirmation screen include all the disclosures required by the Act on Specified Commercial Transactions (price, payment timing, contract period, cancellation terms, etc.)?
- Have you designed consent and information disclosure in line with the APPI rules on providing data to third parties abroad?
- Do your refund and chargeback flows support Japanese?
- Decide whether to use a Japanese PSP (GMO / SB / KOMOJU, etc.) or handle it yourself with Stripe or similar
❓ Frequently asked questions
What is the most widely used payment method in Japan?
Which payment methods should a cross-border e-commerce business offer first when entering Japan?
Why is PayPay so strong in Japan?
What should I watch out for with subscription payments?
📚 Related articles
📖 Sources
- 経済産業省「2025年のキャッシュレス決済比率を算出しました」(METI, "Cashless payment ratio for 2025 calculated"), March 31, 2026 — cashless payment ratio of 58.0% (domestic indicator), ¥162.7 trillion in payments, breakdown by payment method, 46.3% under the international comparison indicator
meti.go.jp/press/2025/03/20260331006/ - PayPay株式会社「『PayPay』の登録ユーザーが7,500万人を突破！」(PayPay Corporation, "PayPay registered users pass 75 million!"), August 10, 2026 — 75 million registered users (as of August 9, 2026), 43+ million eKYC-completed users, 8.88 billion transactions in 2025, more than 20% of 43.5 billion cashless transactions in Japan
about.paypay.ne.jp/pr/20260810/01/ - LINEヤフー株式会社「日本国内における『LINE Pay』サービス終了に関するお知らせ」(LY Corporation, "Notice of the end of the LINE Pay service in Japan"), June 13, 2024 — phased shutdown of the Japan service by April 30, 2025, balance transfer to PayPay, Taiwan and Thailand not affected
lycorp.co.jp/ja/news/release/008628/ - ソフトバンク株式会社・ヤフー株式会社・PayPay株式会社「100億円あげちゃうキャンペーン」に関するプレスリリース (SoftBank Corp., Yahoo Japan Corporation and PayPay Corporation, press release on the "¥10 Billion Giveaway Campaign"), November 22, 2018; PayPay加盟店向けお知らせ (PayPay notice to merchants), December 13, 2018, on the end of the campaign
softbank.jp/corp/news/press/sbkk/2018/20181122_02/ ／ paypay.ne.jp/notice-merchant/20181213/438/ - 日本クレジット協会（クレジット取引セキュリティ対策協議会）「クレジットカード・セキュリティガイドライン」関連資料 (Japan Consumer Credit Association (Council for Credit Transaction Security), "Credit Card Security Guidelines" and related documents), versions 5.0 to 6.1
j-credit.or.jp/security/document/ - 割賦販売法（e-Gov法令検索）(Installment Sales Act, e-Gov Laws and Regulations Search) — Article 35-17-15 (prevention of unauthorized use of credit card numbers, etc.)
laws.e-gov.go.jp/law/336AC0000000159 - 資金決済に関する法律（e-Gov法令検索）(Payment Services Act, e-Gov Laws and Regulations Search) — Article 5 (notification by issuers of in-house instruments), Article 7 (registration of issuers of third-party instruments), Article 37 (registration of funds transfer service providers)
laws.e-gov.go.jp/law/421AC0000000059 - 消費者庁「特定商取引法ガイド：通信販売」(Consumer Affairs Agency, "Guide to the Act on Specified Commercial Transactions: Mail-order sales") — disclosures required when accepting specified applications (Article 12-6) ／ 特定商取引に関する法律（e-Gov法令検索）(Act on Specified Commercial Transactions, e-Gov Laws and Regulations Search)
no-trouble.caa.go.jp/what/mailorder/ ／ laws.e-gov.go.jp/law/351AC0000000057 - 個人情報の保護に関する法律（e-Gov法令検索）(Act on the Protection of Personal Information, e-Gov Laws and Regulations Search) — Article 28 (restriction on provision to a third party in a foreign country), Article 171 (scope of application)
laws.e-gov.go.jp/law/415AC0000000057 - 公正取引委員会「スマホソフトウェア競争促進法」(Japan Fair Trade Commission, "Mobile Software Competition Act"; fully in force December 18, 2025; designations made March 26, 2025) ／ スマートフォンにおいて利用される特定ソフトウェアに係る競争の促進に関する法律 第8条 (Act on Promotion of Competition for Specified Smartphone Software, Article 8; e-Gov Laws and Regulations Search)
jftc.go.jp/msca/ ／ laws.e-gov.go.jp/law/506AC0000000058
Change history: 2026.07.23 first published ／ 2026.10.28 revised (reflected the end of LINE Pay's Japan service, replaced payment shares with METI's 2025 data, updated PayPay's registered user count, added sources)