Japan Mobile Wallet Market Research Report By Mode of Payment (NFC, Remote Payment) and By Type (Proximity, Remote)-Forecast to 2035

Japan Mobile Wallet Market Overview

As per MRFR analysis, the Japan Mobile Wallet Market Size was estimated at 97.52 (USD Million) in 2023.The Japan Mobile Wallet Market is expected to grow from 114.8(USD Million) in 2024 to 459.2 (USD Million) by 2035. The Japan Mobile Wallet Market CAGR (growth rate) is expected to be around 13.431% during the forecast period (2025 - 2035).

Key Japan Mobile Wallet Market Trends Highlighted

The growing use of cashless payment methods by both consumers and companies is propelling the mobile wallet market in Japan. The Japanese government's efforts to move toward a cashless society, which include a goal of greatly increasing the use of cashless payments by 2025, are in line with this trend.

One of the main reasons for this change is the ease of use of mobile wallets, which let customers pay using smartphones and other smart devices. Furthermore, mobile wallets are made more appealing by the incorporation of other services like e-commerce transactions, transit costs, and loyalty benefits.

This market offers opportunities to investigate, including improved security features and cutting-edge payment methods like blockchain technology and biometric authentication. The demand for solutions that provide safety, speed, and convenience of use is rising as Japanese consumers become more tech-savvy.

Furthermore, more frictionless payment experiences are being made possible by partnerships between retailers, technology businesses, and financial institutions. Recent trends show that the COVID-19 outbreak has prompted a spike in contactless payments as people look for hygienic alternatives to cash transactions.

To meet the demands of visitors and expats, businesses are now extending their offerings to include international remittance possibilities. Since Japan is a leader in mobile technology, the market's future in this region will probably be shaped by the ongoing development of mobile wallets as well as growing ecosystems that include a variety of payment platforms.

The necessity of staying up to date with customer preferences and improving the entire user experience in mobile financial transactions is highlighted by the quick innovation in digital services.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Japan Mobile Wallet Market Drivers

Rising Smartphone Penetration

In Japan, the increasing penetration of smartphones is a significant driver of the Japan Mobile Wallet Market. As of 2023, around 80% of the population is reported to own a smartphone, according to a survey organized by the Ministry of Internal Affairs and Communications.

This high ownership rate encourages the development and use of mobile wallet applications, as users are more likely to adopt mobile payment solutions. Major companies like NTT Docomo and SoftBank are investing substantially in Research and Development to enhance their mobile wallet services, providing convenient payment options and integrating loyalty programs.

This trend is supported by the fact that about 30% of buyers in Japan have shifted to mobile payments in recent years. With the advancement in technology and the constant need for quick and efficient payment methods, it is expected that the mobile wallet adoption will continue to grow significantly, pushing the overall Japan Mobile Wallet Market forward.

Government Initiatives for Cashless Society

The Japanese government has been actively promoting a cashless society as part of its digital transformation agenda. Initiatives such as the 'Cashless Vision', which aims to increase the cashless transaction ratio to 40% by 2025, showcase the commitment to reducing cash dependency.

This initiative is supported by funding for infrastructure improvements and incentives for small businesses to adopt mobile payment systems.

The increase in public awareness about mobile wallets through government campaigns has further encouraged consumers to embrace these technologies. With the government’s support for financial technology, the Japan Mobile Wallet Market is expected to see accelerated growth as more citizens adopt cashless payment solutions in their everyday transactions.

Integration of Loyalty Programs

Numerous retailers in Japan are now integrating loyalty programs into their mobile wallet offerings. According to data from the Japan Chain Store Association, around 70% of retail stores have initiated loyalty programs that reward customers for using mobile wallets.

Major players like Rakuten and 7-Eleven have capitalized on this trend by launching their mobile wallets, which offer points and discounts for transactions. The integration of loyalty programs into mobile wallets has proven successful in encouraging repeated usage among consumers, thus enhancing user engagement.

As mobile wallets become an essential part of the shopping experience, this integration is anticipated to drive the growth of the Japan Mobile Wallet Market significantly in the coming years.

Japan Mobile Wallet Market Segment Insights

Mobile Wallet Market Mode of Payment Insights

The 'Japan Mobile Wallet Market' is evolving rapidly, particularly in the Mode of Payment segment, driven by technological advancements and changing consumer behavior. Mobile wallets have gained remarkable traction, with the integration of payment modes like NFC (Near Field Communication) and Remote Payment reshaping the transaction landscape.

NFC technology enables seamless, contactless transactions, making it a preferred choice for consumers seeking convenience and efficiency during their shopping experiences. This technology capitalizes on Japan's highly urbanized settings, where speed and efficiency are crucial.

The integration of NFC in mobile payments also aligns with Japan's emphasis on innovation, as the nation continues to be a leader in adopting smart technologies. On the other front, Remote Payment systems are also increasingly significant within the Japan Mobile Wallet Market.

This method is particularly valuable for online shopping and e-commerce, which has seen substantial growth in recent years, especially in light of the pandemic. With many consumers adapting to digital channels for their purchases, Remote Payments offer flexibility and ease, attracting users who prefer shopping from their homes or on-the-go without the constraints of physical transactions.

The growth of both these payment modes is supported by Japan’s robust infrastructure, reliable internet connectivity, and a populace accustomed to using digital solutions for day-to-day activities. However, despite the positive outlook for these payment methods, challenges such as security concerns and the need for regulatory compliance remain areas of focus.

As mobile wallet adoption rises, ensuring secure transactions will be essential to maintaining consumer trust. Government initiatives aimed at promoting digital finance and cashless transactions also provide a conducive environment for growth.

In summary, the Mode of Payment segment, encompassing NFC and Remote Payment, plays a crucial role in shaping the dynamics of the 'Japan Mobile Wallet Market', underpinned by a strong consumer shift towards digital transactions and the overarching trend of convenience in the Japanese market.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Mobile Wallet Market Type Insights

The Japan Mobile Wallet Market shows significant diversification across different types as it adapts to changing consumer behaviors and technological advancements. Among these types, the Proximity segment, which facilitates transactions through contactless payment methods, continues to gain momentum due to its fast and convenient nature.

With widespread adoption of Near Field Communication (NFC) technology in smartphones and payment terminals, this type has effectively transformed in-store shopping experiences. Meanwhile, the Remote segment caters to online transactions and is increasingly important as e-commerce flourishes in Japan.

Rising internet penetration and smartphone usage in Japan contribute to the growing preference for mobile wallet applications that allow consumers to make purchases from the comfort of their homes. Both segments reflect a shift towards cashless transactions, responding to consumer demand for ease and efficiency.

Trends indicate that businesses are enhancing their digital payment capabilities to adapt to this evolving landscape. Challenges like cybersecurity threats and regulatory compliance remain significant, yet opportunities abound as more consumers and businesses recognize the benefits of mobile wallets, driving an overall inclination towards a cashless society in Japan.

Japan Mobile Wallet Market Key Players and Competitive Insights

The Japan Mobile Wallet Market has experienced significant evolution and proliferation, shaping the landscape of digital payments in the region. With the growing reliance on mobile technology and the increasing preference for cashless transactions, Japan has witnessed a competitive environment amongst various players in the mobile wallet sector.

The insights into this market reveal a dynamic interplay among numerous stakeholders, including telecom companies, banks, and dedicated payment service providers. These companies are consistently innovating to capture market share by enhancing user experiences and expanding service offerings.

Competitive strategies focus on integrating advanced technologies, such as biometric verification and customer loyalty programs, to attract consumers in a market that is quickly becoming dominated by digital financial solutions.

NTT DoCoMo holds a significant position in the Japan Mobile Wallet Market, leveraging its extensive telecommunications network and infrastructure to enhance its payment services. The company's strong brand recognition and large customer base provide a robust foundation for its mobile wallet offerings.

NTT DoCoMo's mobile wallet service is characterized by its seamless integration with various payment methods and a user-friendly interface, thereby allowing for easy access and efficient transactions. The strength of NTT DoCoMo lies in its strategic partnerships with banks and merchants, which boosts its merchant acceptance and promotes the mobile wallet concept among consumers.

This extensive collaboration helps to drive consumer adoption and loyalty, reinforcing NTT DoCoMo's competitive status in the Japanese market.

Key Companies in the Japan Mobile Wallet Market Include

• NTT DoCoMo
• Merpay
• Google Pay
• Rakuten
• PayPay
• JCB
• SoftBank
• Apple Pay
• UnionPay
• au PAY

Japan Mobile Wallet Market Developments

Android users can now add JCB credit or debit cards to Google Wallet and make contactless payments at establishments that accept JCB Contactless thanks to JCB's activation of Google Pay support for Japanese-issued cards in October 2024.

In November 2024, PayPay expanded its collaboration with Alipay+, allowing more than 3 million Japanese retailers to take payments from foreign e-wallet users, such as Alipay, Kakao Pay, GCash, and others. This was made possible by a promotional campaign that offered discounts and cashback from December 2024 to January 10th, 2025.

Apple abolished the requirement that Japanese-issued cards support FeliCa in order to be eligible for Apple Pay in March 2025. This expanded access to Apple Pay by enabling the addition of VISA Japan, Revolut, and Sony Bank debit cards with EMV-only compatibility to Apple Wallet.

In order to unify NFC mobile payments (apart from Osaifu Keitai) across international standards and enable wider compatibility and merchant acceptance, Japan's NFC Mobile Consortium—which consists of NTT DoCoMo, KDDI, and SoftBank—was founded earlier in September 2024.

Additionally, e-commerce sites can now take PayPay wallet payments with speedier payout settlement thanks to Stripe's April 2025 introduction of PayPay acceptance for online businesses.

While interoperability between PayPay, Merpay, and LINE Pay is maintained through QR code alliance projects under the Mobile Payment Alliance (MoPA), technologies such as Osaifu Keitai continue to serve as the foundation for services like NTT DoCoMo's d-Barai and au-PAY.

When taken as a whole, these advancements show how Japan's wallet ecosystem is changing, as evidenced by NFC standardization, acceptance by international travelers, the growth of bank-backed wallets, and platform-to-platform digital payment integration.

Japan Mobile Wallet Market Segmentation Insights

• Mobile Wallet Market Mode of Payment Outlook
  • NFC
  • Remote Payment
• Mobile Wallet Market Type Outlook
  • Proximity
  • Remote

 

Report Attribute/Metric Source:	Details
MARKET SIZE 2023	97.52(USD Million)
MARKET SIZE 2024	114.8(USD Million)
MARKET SIZE 2035	459.2(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR)	13.431% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Million
KEY COMPANIES PROFILED	NTT DoCoMo, LINE Pay, Merpay, Google Pay, Sony Bank, FamiPay, Rakuten, PayPay, JCB, SoftBank, Apple Pay, Amazon Pay, UnionPay, au PAY
SEGMENTS COVERED	Mode of Payment, Type
KEY MARKET OPPORTUNITIES	Growing e-commerce adoption, Expansion of contactless payments, Integration with loyalty programs, Rise in mobile banking usage, Increasing smartphone penetration
KEY MARKET DYNAMICS	growing smartphone penetration, advanced security features, increasing cashless transactions, government support for digital payments, rising e-commerce adoption
COUNTRIES COVERED	Japan