LIFE CARD, Japan’s most innovative credit card issuer has introduced a biometric payment cards in Japan. LIFE CARD is targeting commercial deployment in H1 2025.
Japan launch of biometric payment cards
Japan is one of the largest payment markets in Asia, with a very advanced acceptance landscape which is ready for biometric smart cards.
Credit cards have emerged to become the most popular alternative to cash in Japan, with 314 million cards issued.
Accounting for more than 80% percent of cashless transactions, credit cards are used far more than any other digital payment instrument in Japan.
As a credit card issuer of Visa and Mastercard, LIFE CARD is commercialising premium, corporate and student card programs. Biometric payment cards will be a key differentiator and amplifier as LIFE CARD continues to lead innovation in the market.
Key Features of the Japanese Payments Market
The Japanese payments market is characterised by a blend of traditional cash usage and increasing adoption of digital payment methods, driven by government initiatives and evolving consumer preferences.
Dominance of Cash: Despite advancements in digital payments, cash remains a significant mode of transaction, accounting for around 70% of total payments as of recent years. It is primarily used for low-value transactions.
Growth in Digital Payments: Electronic payment methods reached 111 trillion yen ($838 billion) in 2022, marking a 17% annual increase and representing one-third of Japan’s total consumption. The government’s “Cashless Vision” aims to increase cashless transactions to 40% by 2025 and eventually to 80%.
Credit and Debit Cards: Credit cards are the most widely used cashless payment method, constituting 30.4% of private consumption expenditure in 2022. Over 314 million credit cards were issued by 2023. Debit cards are the most-held card type, but their transaction value remains lower than credit cards due to limited merchant acceptance and fewer rewards programs.
Emerging Payment Methods: QR code payments grew significantly, with a 50% increase in value to 7.9 trillion yen in 2022. Mobile wallets and contactless payments are gaining traction due to convenience and loyalty incentives. E-money platforms like Suica and Pasmo have been instrumental in popularising digital payments for transportation and retail.
E-commerce and Mobile Commerce: Japan is the fourth-largest e-commerce market globally, with mobile commerce playing a pivotal role in driving digital payment adoption. The number of e-commerce users is expected to reach 66.9 million by 2028, over half the projected population.
Government Initiatives: The Japanese government has introduced measures such as digital salary payments (since April 2023) and incentives for businesses to adopt cashless systems. The emergence of digital-only banks like Minna Bank further supports the shift toward electronic payments.
Within the context of this changing market, Keiji Masui, President at LIFE CARD, noted: “LIFE CARD provides innovative, secure and frictionless payment solutions to our growing consumer base.
Introducing the latest biometric technology and security to the Japanese market, will reinforce our market positioning, as we attract new customers and increase transactions and customer lifetime value.”
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