Mobile Wallet Companies are Incorporating Contactless Technologies in their Prepaid Cards to Provide More Versatile Payment Experience

DUBLIN, March 9, 2022 /PRNewswire/ — The “Japan Prepaid Card and Digital Wallet Business and Investment Opportunities Databook – Market Size and Forecast, Consumer Attitude & Behaviour, Retail Spend” report has been added to ResearchAndMarkets.com’s offering.

The prepaid card market (value terms) in Japan increased at a CAGR of 8.2% during 2017-2021. Over the forecast period of 2022 to 2026, the market is expected to record a CAGR of 10.9%, increasing from US$166.00 billion in 2022 to reach US$250.87 billion by 2026.

With the onset of the pandemic, the preference pattern of the consumers shifted towards cashless payments in Japan. Moreover, the millennials of Japan are becoming a more significant part of the consumer economy. They have been demanding a transition to match their tech-friendly habits, which further boosted the cashless payments methods in the country.

Also, Japan has the most vibrant e-commerce market and is the fourth largest in the world. With the rising number of consumers making online payments during the pandemic, the country will witness a high adoption rate of prepaid cards in the country. Moreover, hypermarkets, supermarkets, convenience stores played a vital role in the growth of the prepaid card market. These retail stores offer loyalty programs and reward schemes, which boosted consumers to adopt these cashless methods, giving further momentum to the prepaid card market in Japan.

Additionally, in Japan, prepaid cards are used in various micropayments such as retail payments, contactless transport products such as prepaid transport ticketing. Accordingly, merchants are also trying to expand their products in networks, such as in airports, highway service stations, etc.

In Japan2021 to witness a surge in mobile payments activities, which further gave impetus to various business strategies in the country, providing growth to the prepaid market.

Companies Featured

  • Seven & I Holdings Co Ltd
  • AEON Group
  • Lawson Inc
  • FamilyMart Co Ltd
  • Yamada Denki Co Ltd
  • Rakuten Inc
  • Amazon.com Inc
  • Isetan Mitsukoshi Holdings Ltd

Japanese prepaid card companies integrate with mobile wallet companies to attract more consumers

With the younger generation getting attracted towards digital payments, the Japanese prepaid companies are plunging into partnerships with mobile wallet companies to increase acceptability among consumers, thereby increasing the customer base in the country.

  • In October 2021, Japanese prepaid cards WAON and nanaco launched Apple Pay in these prepaid cards to integrate e-Money systems into the fold. Initially, these prepaid cards were used by Google Pay users, but from this partnership, Aeon’s WAON and Seven & i Holdings’ nanaco is now available to iPhone and Apple Watch users also.
  • Moreover, the company will allow users to directly transfer plastic cards to wallets in iOS 15, a feature available specific to this platform. This is helpful for those who prefer recharging with cash instead of wallet-stored credit card. Also, WAON and nanaco will allow adding new cards directly to the wallet, and this can be done without the creation of an account.
  • The Japanese WAON card users get a facility of the “e-Money” option in the Wallet app. The addition of the card will provide the users’ facilities such as viewing of the transaction history, auto-recharging provision of cards, earning double card points, etc.

Japanese mobile wallet companies launching physical prepaid cards to increase customer base

Mobile wallet companies have extended their product portfolio with physical cards to attract more customers. With older people in the Japanese population, this strategy may work with older citizens who still depend on cash and physical cards. For instance,

  • In June 2021, Mixi’s mobile wallet “6gram” (Rokugram) launched physical prepaid cards which are compatible with Visa’s touch payment. These cards allow the user to access the 6gram wallet balance and are also available across domestic and overseas Visa member stores.
  • The prepaid card has no card number mentioned on the card and can be confirmed from the 6gram app on the smartphone. This is done by keeping the security of the cardholder in mind.
  • The card can be issued from the app itself, and the fees are 600 yen, inclusive of taxes. Additionally, the company charges no annual membership fee, and the usage limit is up to 500,000 yen.

Mobile wallet companies are incorporating contactless technologies in their prepaid cards to provide more versatile payment experience

With the changing payments landscape of the Japanese economy, mobile wallet companies are launching prepaid cards and integrating smart payment solutions to push away from cash and also to widen their customer base.

  • In August 2021Mixi’s mobile wallet “6gram” has selected Idemia, a global leader in Augmented Identity, to launch the first 6gram Real Card with an integrated cashless payment experience.
  • The card is a physical VISA contactless prepaid card that is connected to 6gram user’s e-wallet accounts. The card leverages IDEMIA’s extensive card personalization technologies that offer the card a unique transparent look.
  • The new card is also incorporated with IDEMIA’s card activation technology called Card Connect that provides the consumer with advanced banking functionality, including easy card activation and customer authentication.
  • Together with this, the card also works for retail payments and ATM machines.

Scope

Japan Digital Wallet Market Size and Forecast

  • Transaction Value Trend Analysis
  • Transaction Volume Trend Analysis
  • Average Value per transaction

Japan Digital Wallet Market Size and Forecast by Key Segments

  • Retail Shopping (Value, Volume, Avg. Value)
  • Travel (Value, Volume, Avg. Value)
  • Entertainment and Gaming (Value, Volume, Avg. Value)
  • Restaurant (Value, Volume, Avg. Value)
  • Recharge and Bill Payment (Value, Volume, Avg. Value)

Japan Prepaid Card Industry Market Attractiveness

  • Load Value Trend Analysis
  • Transaction Value Trend Analysis
  • Transaction Volume Trend Analysis
  • Average Value per transaction
  • Number of Cards

Market Share Analysis by Functional Attributes – Open Loop vs. Closed Loop, 2016 – 2025

Market Share Analysis by Prepaid Card Categories

Japan Open Loop Prepaid Card Future Growth Dynamics, 2016 – 2025

  • Transaction Value Trend Analysis
  • Transaction Volume Trend Analysis
  • Average Value per transaction
  • Number of Cards

Japan Closed Loop Prepaid Card Future Growth Dynamics, 2016 – 2025

  • Transaction Value Trend Analysis
  • Transaction Volume Trend Analysis
  • Average Value per transaction
  • Number of Cards

Japan Prepaid Card Consumer Usage Trends

  • By Age Group
  • By Income Group
  • By Gender

Japan General Purpose Prepaid Card Market Size and Forecast

Japan Gift Card Market Size and Forecast

Gift Card Market Size and Forecast by Functional Attribute

  • By Open Loop Gift Card
  • By Closed Loop Gift Card
  • By Retail Consumer Segment
  • By Corporate Consumer Segment

Gift Card Market Share Analysis by Retail Categories

Gift Card Market Share Analysis by Gifting Occasion

Gift Card Market Share Analysis by Purchase Location

Japan Entertainment and Gaming Prepaid Card Market Size and Forecast

Japan Teen and Campus Prepaid Card Market Size and Forecast

Teen and Campus Prepaid Card Market Size and Forecast by Functional Attribute

  • By Open Loop Teen and Campus Prepaid Card
  • By Closed Loop Teen and Campus Prepaid Card

Japan Business and Administrative Expense Prepaid Card Market Size and Forecast

  • By Small Scale Business Segment
  • By Mid-Tier Business Segment
  • By Enterprise Business Segment
  • By Government Segment

Japan Payroll Prepaid Card Market Size and Forecast

  • By Small Scale Business Segment
  • By Mid-Tier Business Segment
  • By Enterprise Business Segment
  • By Government Segment

Japan Meal Prepaid Card Market Size and Forecast

  • By Small Scale Business Segment
  • By Mid-Tier Business Segment
  • By Enterprise Business Segment
  • By Government Segment

Japan Travel Forex Prepaid Card Market Size and Forecast

  • By Retail
  • By Small Scale Business Segment
  • By Mid-Tier Business Segment
  • By Enterprise Business Segment
  • By Government Segment

Japan Transit and Tolls Prepaid Card Market Size and Forecast

Japan Healthcare and Wellness Prepaid Card Market Size and Forecast

Japan Social Security and Other Government Benefit Programs Prepaid Card Market Size and Forecast

Japan Fuel Prepaid Cards Market Size and Forecast

Japan Utilities, and Other Prepaid Cards Market Size and Forecast

For more information about this report visit https://www.researchandmarkets.com/r/fv1vu2

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