Japan POS Terminals Market

Japan POS Terminals Market Size and Share:

The Japan POS Terminals market size was valued at USD 7.2 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 14.6 Billion by 2033, exhibiting a CAGR of 8.2% from 2025-2033.  The market in Japan is primarily driven by the increasing adoption of electronic payment methods, regulatory support for digital transformation, expanding online retail activities, deployment of intelligent analytics, seamless multichannel sales integration, and rising usage across retail, hospitality, healthcare, and entertainment sectors.

The POS terminal market in Japan is primarily driven by the implementation of government's initiatives to promote a cashless society, which is leading to the increasing adoption of electronic payment systems among businesses. For instance, in September 2023, Deutsche Bank Research reported that Japan has made significant progress toward a cashless society over the past five years. Through the "Cashless Vision," the Japanese government had set a target in 2019 for 40% of transactions to be cashless by Expo 2025 Osaka, aiming for 80% in the future. Additionally, the rapid expansion of the e-commerce platforms is necessitating the integration of advanced POS solutions to manage transactions efficiently.

The rising trend of omnichannel retailing is driving businesses to adopt POS systems, which are capable of seamlessly operating across multiple sales channels. As per PYMNTS.com, embedded point-of-sale (POS) innovations are revolutionizing small businesses by integrating advanced financial services for both online and offline transactions. With 71% of merchants expecting software to replace traditional POS terminals, these modern systems offer features such as contactless payments, loyalty programs, and real-time account-to-account transfers, reducing reliance on costly legacy systems that can require $3,000 to over $10,000 annually for maintenance. Additionally, the increasing requirement in the healthcare industry for efficient billing and inventory management has also contributed to the increased deployment of POS terminals. Moreover, the growth of the entertainment industry, particularly in areas like cinemas and amusement parks, is leading to higher demand for POS solutions to manage ticketing and sales.

Japan POS Terminals Market Trends:

Increasing Mobile POS Adoption

The growth in mobile POS use in Japan is attributed to wide mobile phone usage and expanding demand for flexible payment choices. These systems have modern features like invoice and stock management, which makes it a great fit for industries that involve retail, tourism, or e-commerce. This further grows as  Japan plans to launch a unified QR code payment system, JPQR, by April 2025, as reported by The Straits Times on May 4, 2024. The initiative aims to integrate JPQR with the QR code standards of countries, including Singapore (SGQR), Malaysia (DuitNow QR), and Thailand (Thai QR Payment), creating a seamless payment experience for tourists across Asia. Mobile POS solutions, including offerings like JPQR, support businesses in providing efficient on-the-go payment experiences for technology-centric consumers and international visitors alike.

Rapid Expansion of Contactless Payment Technologies

The rapid expansion of contactless payment technologies in Japan is due to increasing number of consumers prioritizing hygiene and convenience. On September 25, 2023, the cash and treasury management (CTM) file reported that cashless transactions in Japan surged by 17% year-on-year, reaching an unprecedented 111 trillion yen in 2022. This remarkable growth is attributed to change in consumer preferences. In addition to NFC-enabled payments, the widespread adoption of digital wallets such as PayPay, Rakuten Pay, and LINE Pay is also supporting the expansion of cashless payment methods. These digital wallets are offering seamless integration with various POS systems, which enhances user convenience and increasing merchant adoption.

Integration of Advanced Analytics and Artificial Intelligence (AI)

Contactless payment technologies are growing in usage in Japan since hygiene as well as convenience is becoming an imperative for consumers. For instance, on December 18, 2023, Marubeni Corporation launched a pilot test for an AI-powered facial recognition fare payment system on Kumamoto City trams. This system allows passengers to make payments seamlessly without physical tickets, thereby enhancing convenience and optimizing the boarding process. The introduction of AI-based technologies, like the Marubeni program, is a testament to the commitment of Japan in using technology for the transformation of payment systems and customer experience. Also, modern POS machines have incorporated features such as CRM tools and financial solutions that help businesses analyze transactional data for actionable insights.

Japan POS Terminals Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the Japan POS Terminals market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on type, and end use industry.

Analysis by Type:

• Fixed Point-of-sale Systems
• Mobile/Portable Point-of-sale Systems
   

The report has provided a detailed breakup and analysis of the market based on the type. This includes fixed point-of-sale systems and mobile/portable point-of-sale systems.

Fixed POS systems play a vital role in POS terminals market in Japan, particularly among established businesses such as supermarkets, department stores, and chain retailers. These systems offer potent features, including inventory management, data analytics, and seamless payment integration. Their reliability and ability to handle high transaction volumes make them indispensable for large-scale operations.

Mobile POS systems are gaining popularity in Japan among small businesses, pop-up shops, and restaurants. These systems provide flexibility, which enables merchants to accept on-the-go payments. This improves customer experience and reduces checkout times. Their cost-effectiveness and ease of usage align with the growing trend of cashless transactions in Japan.

Analysis by End Use Industry:

• Retail
• Hospitality
• Healthcare
• Others
   

The retail sector is crucial to the Japan POS terminal market, driven by changing consumer expectations and a shift towards digital payments. Convenience stores, department stores, and supermarkets rely heavily on POS systems for effective inventory management, transaction processing, and data analysis. The growth of e-commerce and omnichannel retailing demands advanced POS terminals to provide seamless customer experiences and operational efficiency in this competitive landscape.

Hospitality businesses, including restaurants, hotels, and entertainment venues, also play a significant role in Japan's POS terminal market. These establishments focus on POS systems to streamline operations, enhance customer service, and integrate with booking or loyalty programs. The rising popularity of contactless payment options and mobile POS solutions reflects the industry's commitment to improving guest satisfaction.

In the healthcare sector, Japan is increasingly adopting POS terminals to modernize payment systems in clinics, pharmacies, and hospitals. These solutions simplify billing processes, ensure compliance with medical payment regulations, and facilitate efficient handling of insurance claims. The integration of POS systems with patient management software further enhances operational workflows. The sector's move towards digitalization to improve service delivery and financial management is bolstering the market in Japan.

Regional Analysis:

• Kanto Region
• Kansai/Kinki Region
• Central/ Chubu Region
• Kyushu-Okinawa Region
• Tohoku Region
• Chugoku Region
• Hokkaido Region
• Shikoku Region
   

The Kanto region, which includes Tokyo and Yokohama, is one of the leading areas in Japan's POS terminal market, due to its large urban population and vibrant retail, hospitality, and financial sectors. With numerous shopping malls, restaurants, and business centers, this region significantly boosts the demand for advanced POS systems. The increasing usage of cashless payments and the integration of e-commerce further emphasize the region's crucial role in shaping the country's POS technology landscape.

The Kansai region, which includes Osaka, Kyoto, and Kobe, plays an essential role in Japan's POS terminal market. Known for its rich cultural heritage and active tourism industry, this area experiences considerable POS adoption in hospitality and retail sectors. The growing preference for digital transactions among both locals and international visitors drives the demand for sophisticated POS solutions designed to efficiently manage high transaction volumes.

The Chubu region, featuring Nagoya and its surrounding industrial areas, is another important area in Japan's POS terminal market. The region's strong manufacturing and business sectors, combined with increasing urbanization, create a demand for advanced payment solutions in retail and service industries. With a mix of traditional commerce and modern businesses, Chubu represents a developing market for integrated POS systems that cater to various business needs.

The Kyushu-Okinawa region, recognized for its tourism and agriculture, occupies a strategic position in Japan's POS terminal market. As a favored destination for both domestic and international travelers, this region experiences significant demand for POS systems in hospitality and retail. The growing adoption of contactless payment solutions and mobile POS devices reflects the region's dedication to improving customer convenience and operational efficiency.

The Tohoku region is important in Japan’s POS terminal market, driven by its expanding retail and hospitality sectors. With local governments actively promoting tourism and the sale of regional products, businesses are turning to advanced POS systems to enhance efficiency. The digital transformation efforts among smaller enterprises in Tohoku are also fueling demand, leading to the adoption of cloud-based solutions and contactless payment systems that cater to the specific needs of the local market.

The Chugoku region plays a key role in the POS terminal market, supported by its diverse economy that includes manufacturing, tourism, and retail. There is a noticeable increase in investments in digital infrastructure, allowing businesses to implement modern POS solutions. Retailers and service providers are adopting these systems to improve customer experiences and operational efficiency, especially as the region draws more domestic and international visitors, heightening the demand for seamless payment technologies.

Hokkaido’s significance in the POS terminal market is underscored by its strong tourism-driven economy. Retailers and restaurants serve a large number of tourists, making efficient and multilingual POS systems crucial. The region’s focus on utilizing technology for seasonal events and agricultural trade further drives the adoption of POS terminals. These systems are essential for streamlining transactions, enhancing inventory management, and supporting the cashless payment trends that are popular among visitors.

Shikoku adds to Japan’s POS terminal market through its expanding small and medium-sized business sector, which includes traditional retail and food services. The region is adopting digital payment systems to modernize operations and appeal to younger consumers who favor cashless transactions. Furthermore, government initiatives promoting cashless societies and regional revitalization projects are speeding up the adoption of POS solutions, making them essential for local businesses.  

Competitive Landscape:

The competitive landscape of Japan's POS terminal market is evolving by the strategic collaborations between financial institutions and technology providers. For example, on November 19, 2024, Boku, a global leader in mobile payments and identity solutions, announced a commercial agreement with Amazon Japan. This partnership focuses on providing digital wallet services and local payment methods for Amazon transactions and promoting mobile wallet adoption. The market's competitive dynamics are also shaped by a strong emphasis on localized solutions tailored to regional consumer behaviors and payment preferences. Additionally, the increasing focus on scalability and seamless integration with existing business management systems is driving innovation, enabling businesses to streamline operations.

The report provides a comprehensive analysis of the competitive landscape in the Japan POS terminals market with detailed profiles of all major companies.

Latest News and Developments:

• September 30, 2024: NEC Corporation, which is headquartered in Tokyo, announced the transfer of its POS-related business from its subsidiary to a special purpose company funded by Nippon Mirai Capital. This strategic initiative, which is set to be completed in August 2025, seeks to unlock the business's full potential. Alos, it focuses on enhancing its competitiveness in the POS market. The new company will leverage Nippon Mirai Capital's expertise to drive growth and innovation while focusing on providing comprehensive retail technology solutions and addressing societal challenges.
• August 21, 2024: DIGI I's, a subsidiary of the DIGI/TERAOKA Group, announced the completion of its new Southwest and South Factories in Iwate, Japan, dedicated to POS system production. These facilities, operational since March 2024, feature a unique pillar-free design that allows for flexible layouts, thereby maximizing production efficiency. This expansion has effectively doubled the company's POS system production capacity, reinforcing its commitment to meeting growing market demands.

Japan POS Terminals Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Japan POS Terminals market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the Japan POS Terminals market.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Japan POS Terminals industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.