Despite being a global leader in innovation, Japan’s eCommerce growth has been tempered by demographic realities, namely its status as the world’s most aged nation, with 28.8% of its population aged 65 or older. Cash remains a prevalent mode of payment, accounting for 13% of transactions, a trend perpetuated by the widespread presence of konbini – convenience stores that serve as cash payment hubs for online purchases. With over 55,000 konbini scattered across the country, these outlets cater to segments of the population, including teenagers without traditional banking access.

While credit card penetration is high, with 76% of Japanese possessing credit cards, online transactions utilize cards in only 64% of cases, highlighting a nuanced payment landscape. Additionally, Japan’s propensity for cross-border shopping is notable, with nearly a third of shoppers purchasing from overseas merchants, driving a significant USD 30 billion in spending in 2022.