How to Accept Credit Card Payments in Japan: Trends, Advantages, and Costs | KOMOJU
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KOMOJU（コモジュ）は個人から世界的大企業まで様々な事業者が利用している日本の決済プラットフォームです。
According to Japan’s Ministry of Economy, Trade and Industry, Japan’s cashless payment ratio in 2024 was 42.8%. Of those transactions, credit cards accounted for 83%, making them the most dominant cashless method in the country by far.
For foreign businesses operating or planning to enter Japan, offering credit card payments is essential for reaching modern consumers and ensuring smooth sales, both online and in-store. However, payments in Japan come with their own rules and customer expectations.
In this guide, we’ll walk through how credit card payments work in Japan, current usage trends, and what businesses should consider when selecting a payment service provider in Japan.
What Are Credit Card Payments in Japan?
Credit card payments are transactions in which a customer authorizes a business to charge their credit account for a purchase. The business is paid by a credit card provider, which collects funds from the customer later.
Japan’s credit card infrastructure encompasses domestic networks, such as the Japan Credit Bureau (JCB), as well as a combination of global and local compliance standards. These include PCI DSS, which governs secure handling of cardholder data worldwide. They also include Japan’s Installment Sales Act, which regulates how postpaid and installment-based payments are offered to consumers.
Unlike in the U.S., where consumers often carry balances and make minimum monthly payments, credit cards in Japan are generally expected to be paid in full by the next billing cycle.
Most Japanese cardholders use postpaid billing, with balances automatically deducted from their bank accounts at the end of the month. Installment and revolving options exist but are mainly used for large purchases and are less common. As a result, credit cards in Japan are viewed more as a convenient cash alternative than a borrowing tool.
Credit Card Usage Trends in the Japanese Market
Cultural attitudes toward credit cards have changed. Once seen as unnecessary or even risky, credit cards are now widely used for everyday purchases. Loyalty points, ease of recurring billing, and integration with mobile wallets have all contributed to this shift.
Major card issuers in Japan include:
- JCB (Japan Credit Bureau)
- Mitsui Sumitomo Card
- Rakuten Card
- Aeon Credit Service
- Sumitomo Mitsui Trust Club (Diners Club)
Usage Rate of Credit Cards is High in Japan
Credit cards are the most widely used cashless payment method in Japan, accounting for 83% of all cashless transactions in 2024, according to METI. Usage has grown steadily over the past decade, with the Japan Consumer Credit Association (JCA) reporting an annual transaction volume of over ¥73 trillion and an average of 2.8 credit cards per person.
For more information, see KOMOJU’s guide to payment methods in Japan.
Tap to Pay is Becoming More Widespread
While prepaid IC cards, such as Suica and Pasmo, once dominated mobile payments, credit-based Tap to Pay (contactless NFC payments) is becoming increasingly common.
As of 2025, Japan’s mobile payments market is valued at $173 billion, driven by rising smartphone adoption, e-commerce growth, and a significant shift toward contactless transactions—particularly in large cities such as Tokyo, Osaka, and Yokohama.
The Japan Mobile Payment Association projects that mobile payment transactions will exceed ¥12 trillion. Proximity payments, such as Tap to Pay, are expected to lead adoption because they are integrated into transport systems and retail checkouts.
Businesses entering the market should consider enabling this fast, mobile-friendly checkout experience. KOMOJU’s Tap to Pay integration allows merchants to accept NFC credit card payments through modern terminals and devices.
How Does Credit Card Processing Work in Japan?
Credit card payments in Japan adhere to a global standard structure, but with local caveats and preferences. There are three core phases: authorization, clearing, and settlement.
Step 1: Authorization (Instant, at Checkout)
- A customer presents a credit card at checkout—by inserting the chip, swiping, or using a mobile option like Apple Pay or PayPay.
- The business’s payment system (such as a terminal or online checkout) sends a request to their payment processor or bank that handles credit card payments.
- This request is routed through the card network (such as Visa, Mastercard, or JCB) to the customer’s credit card company or issuing bank.
- The credit card company checks if the customer has enough available balance and approves or declines the transaction.
If approved, a temporary hold is placed on the customer’s account, and the approval is sent back through the same network to the business.
In Japan, cashiers typically ask how the customer would like to pay—whether in a single payment or installments. Even websites like Amazon will offer installment payments at checkout.
Step 2: Clearing (End-of-Day Reconciliation)
- At the end of the day, the business submits all approved payments in a batch to their payment processor.
- The processor forwards this data through the card network to each customer’s credit card company.
- The credit card company finalizes the charges, removing the temporary hold and officially adding the amount to the customer’s statement. Customers may still have the option to convert the charge into installments or a revolving payment plan.
Step 3: Settlement (1–2 Days Later)
- The card network calculates the totals for all parties involved and settles the payments.
- The customer’s credit card company sends the funds—minus transaction fees—to the business’s payment processor or bank.
- The business then receives the payout in their bank account, either with the fees already deducted or billed separately, depending on the provider.
For international payments or cards, foreign exchange conversion is handled at this stage.
How to Accept Credit Card Payments
