According to the latest report by IMARC Group, titled “Japan Prepaid Cards Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2020-2025”, the Japan prepaid cards market size reached US$ 113.5 Billion in 2019. Prepaid cards are payment cards that are not linked with a bank account. The user generally deposits a cash balance in advance to utilize it as an alternative to cash payment. While most of the prepaid cards are reloadable and can be replenished with funds repeatedly, some of them are non-reloadable, such as gift cards, owing to which the user cannot spend more money than the amount that has been loaded onto the card. They make card-based purchases easier without the inconvenience of dealing with a financial institution. They also offer other advantages, such as security, versatility, direct deposit, online shopping, theft protection, and requirement of no credit history or interest rates. As a result, these cards are rapidly gaining traction all across Japan.
Japan Prepaid Cards Market Trends:
At present, Japan’s e-commerce sector is the fourth largest across the globe and is growing at a fast pace. This is resulting in an increasing number of consumers who are making online purchases using prepaid cards. In line with this, modern retail facilities, such as convenience stores, and hypermarkets and supermarkets, are providing various loyalty programs and reward schemes to consumers with prepaid cards to promote cashless payment in the country. Furthermore, transit agencies in the country are moving away from cash-based fare collection systems to contactless smart card-based systems to minimize the cost of fare collection and offer convenience to consumers. Consequently, they are accepting contactless bank cards at points of entry as a replacement for the current system. Besides this, prepaid cards are also being used in stores, restaurants, vending machines, buses and other forms of public transport. Owing to these factors, the market value is projected to reach US$ 244.2 Billion by 2025, expanding at a CAGR of 13.5% during the forecast period (2020-2025).
- Based on the card type, the market has been bifurcated into closed-loop and open-loop cards. At present, closed-loop cards represent the most commonly utilized card types.
- On the basis of the purpose, the market has been segmented into travel, general-purpose reloadable (GPR), gift, gaming and other cards. Travel cards account for the majority of the total market share.
- The market has been analyzed on the basis of the vertical into retail, government, corporate/organization and others. The retail sector currently exhibits a clear dominance in the market.
- Region-wise, Kanto enjoys the leading position in the market. Other major regions include Kinki, Central/Chubu, Kyushu-Okinawa, Tohoku, Chugoku, Hokkaido and Shikoku.
- The competitive landscape of the market has been examined, with some of the key players being Rakuten Edy, Inc., Quo Card Co. Ltd., PASMO Co. Ltd., Æon Credit Service Co., Ltd., West Japan Railway Company, Seven & I Holdings Co. Ltd. and Nippon Tosho Fukyu Co Ltd.
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