Japan Digital Wallet market was valued at US$1,901.123 million in 2019. The market growth of the digital wallet is projected to remain slow in Japan as it is the cash-based country owing to the large aging population base over there. According to the data provided by the Internal Affairs and Communications Ministry, old age people accounted for 28.4 percent of the country’s population and 12.9 percent of its labor force in 2018. According to Japan’s Ministry of Economy, Trade, and Industry, only 18.4 percent of the country’s household final consumption expenditure was paid via cashless payment methods including electronic money, credit cards, and mobile payments, in 2015. To this date also, four out of five purchases are still made with cash in Japan. However, companies, as well as banks, are still making efforts to encourage people in Japan to use digital wallets for easy and convenient transactions. For example, in March 2019, Japanese bank Mizuho along with around 60 financial institutions launched a new digital wallet- J-Coin Pay- which uses a QR code to process smartphone payments. In December 2019, PayPay, backed by Yahoo Japan and Softbank, announced that it managed to sign up 15 million customers within 10 months of its launch despite the general reluctance among the rapidly-aging population to give up making payments with cash. Moreover, with digital payments make up only about 20 percent of transactions in Japan, the Japanese government has also planned to double this rate by 2025. All these factors will fuel the market growth in this country during the next five years.
Japan Digital wallet market has been segmented based on the device and application. By device, the market has been segmented as PC's/laptops and smartphones. By application, Japan digital wallet market has been classified into money transfer, recharge, movie booking, food ordering, and others.