From cash to convenience store, Japan is a curious region when it comes to payments. Japan is still a predominantly cash-based country, with the third-highest cash usage rate in the developed world. In 2018, cash payments made up 82% of all payments.
While cash and e-commerce don’t necessarily make great bedfellows, Japan’s e-commerce market is the fourth largest in the world, in large part due to Konbini payments. Konbini, or convenience store payments, are the second most-used payment method in Japan, making up 10% of purchases. Konbini payment offers an easy way to tap into the cash market for e-commerce due to the ubiquity of 24/7 convenience stores found across the country.
Japan has some of the lowest cross-border shopping rates in the world. Just over 10% of Japanese consumers shop on overseas websites, so if you’re thinking of expanding to Japan, localisation could play a key role in your success, from the product listings and keywords you use to the payment options you provide.