Japan Buy Now Pay Later Business and Investment Opportunities Databook - 75+ KPIs on BNPL Market Size, End-Use Sectors, Market Share, Product Analysis, Business Model, Demographics - Q2 2024 Update

The BNPL payments in the country are expected to grow by 40.9% on an annual basis to reach US$15.04 billion in 2024.

The medium to long-term growth story of the BNPL industry in the country remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 26.5% during 2024-2029. The BNPL gross merchandise value in the country will increase from US$10.67 billion in 2023 to reach US$48.73 billion by 2029.

Key Developments in the BNPL Sector in Japan

The BNPL sector in Japan has seen a rise in product launches and developments, reflecting its growing popularity among consumers, especially younger demographics.

Product Launches and Innovations

Paidy Plus Launch: Paidy, a leading BNPL service in Japan, introduced Paidy Plus, which implements stricter verification procedures. This allows users to make higher-value purchases, such as those at Apple Retail Stores and the Apple Online Store, enhancing its service offerings.

Atone's New Payment Options: Net Protections Co. has introduced two new payment options under its Atone service: "Next Month Deferred Payment" and "Instant Deferred Payment," which simplify the registration process for users.

Atkara Service by GMO Payment Service: Atkara, a new deferred payment service, allows users to choose various payment options, including full payment the following month or instalment payments spread over 3 to 36 months.

Strategic Partnerships

Klarna's Expansion: Klarna, the Swedish fintech company, has been actively expanding its presence in Japan. It has formed partnerships with local retailers to offer flexible payment options tailored to Japanese consumers. This move aims to increase Klarna's competitiveness in the Japanese BNPL market, which is rapidly evolving.

Regulatory Changes

Instalment Sales Act: BNPL services in Japan are primarily governed by the Instalment Sales Act, which regulates instalment payments and consumer credit. This act requires transparency in terms of fees and payment schedules, but it does not specifically address BNPL services, leading to potential gaps in consumer protection.

Potential for Stricter Regulations: There have been discussions about implementing stricter screening processes for BNPL providers. This includes the possibility of requiring more comprehensive credit checks and clearer disclosures to consumers about the risks associated with BNPL usage, particularly concerning overspending and accumulating debt.

Consumer Protection Concerns: The increasing popularity of BNPL, especially among younger demographics, has raised alarms about financial literacy and the risk of consumers losing track of their spending. This has prompted calls for regulatory measures to ensure that BNPL services do not exploit vulnerable consumers, particularly minors.

Japan's BNPL sector is currently regulated under the Instalment Sales Act, but there is a movement towards stricter regulations to protect consumers and ensure responsible lending practices due to rapid market growth, especially among younger consumers. This balance fosters innovation and safeguards financial health. The popularity of BNPL in Japan has led to notable product launches and developments, particularly among younger demographics.

The BNPL sector in Japan is rapidly evolving, with new product launches and innovations enhancing service offerings and flexibility. Strategic partnerships, like Klarna's expansion, are increasing competition. However, regulatory frameworks are struggling to keep pace, raising concerns about consumer protection and the need for stricter oversight to address potential risks, especially among younger users.

The BNPL payment industry in Japan has recorded strong growth over the last four quarters, supported by increased e-commerce penetration.

This report provides a detailed data-centric analysis of the Buy Now Pay Later (BNPL) industry, covering market opportunities and risks across a range of retail categories. With over 75 KPIs at the country level, this report provides a comprehensive understanding of BNPL market dynamics, market size and forecast, and market share statistics.

It breaks down market opportunities by type of business model, sales channels (offline and online), and distribution models. In addition, it provides a snapshot of consumer behaviour and retail spending dynamics. KPIs in both value and volume terms help in getting an in-depth understanding of end market dynamics.

The publisher’s research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view of emerging business and investment market opportunities.

Scope

This report provides in-depth, data-centric analysis of Buy Now Pay Later industry in Japan through 55 tables and 71 charts. Below is a summary of key market segments:

Japan BNPL Market Size and Spending Pattern, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Japan Buy Now Pay Later Revenue Analysis, 2020-2029

• Buy Now Pay Later Revenues
• Buy Now Pay Later Share by Revenue Segments
• Buy Now Pay Later Revenue by Merchant Commission
• Buy Now Pay Later Revenue by Missed Payment Fee Revenue
• Buy Now Pay Later Revenue by Pay Now & Other Income

Japan Buy Now Pay Later Operational KPIs & Statistics, 2020-2029

• Buy Now Pay Later Active Consumer Base
• Buy Now Pay Later Bad Debt

Japan BNPL by Purpose, 2020-2029

• Convenience - Short Term Loans
• Credit - Long Term Loans

Japan BNPL by Business Model, 2020-2029

• Two-Party (BNPL offered by retailers)
• Three-Party BNPL Offering

Japan BNPL by Merchant Ecosystem, 2020-2029

• Open Loop System
• Closed Loop System

Japan BNPL by Distribution Model Analysis, 2020-2029

• Standalone
• Banks & Payment Service Providers
• Marketplaces

Japan Buy Now Pay Later Market Share Analysis by Key Players

Japan BNPL Analysis by Channel, 2020-2029

• Online Channel
• POS Channel

Japan Buy Now Pay Later in Retail Shopping: Market Size and Forecast, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Japan Buy Now Pay Later in Home Improvement: Market Size and Forecast, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Japan Buy Now Pay Later in Travel: Market Size and Forecast, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Japan Buy Now Pay Later in Media and Entertainment: Market Size and Forecast, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Japan Buy Now Pay Later in Services: Market Size and Forecast, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Japan Buy Now Pay Later in Automotive: Market Size and Forecast, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Japan Buy Now Pay Later in Healthcare and Wellness: Market Size and Forecast, 2020-2029

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Japan Buy Now Pay Later in Others: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Japan Buy Now Pay Later Analysis by Consumer Attitude and Behaviour

• Sales Uplift by Product Category
• Share by Age Group
• Share by Income
• Share by Gender
• Adoption Rationale
• Average Monthly Expense segments

Reasons to buy

• Gain a thorough grasp of the dynamics of the industry for Buy Now Pay Later: Determine key trends, market opportunities, and projections for the years 2020-2029. To keep on top of the game, utilise critical KPIs such as volume, average value per transaction, and gross merchandise value to understand market trends.
• Get market dynamics by end-use sectors and assess new prospects across various end-use sectors to quickly stay up to date on the most recent and impending developments in BNPL markets.
• Market-specific strategies include identifying growth areas that are concentrated on particular opportunities and using our unique combination of quantitative forecasting and cutting-edge insights to analyse market-specific risks and significant trends in the BNPL sector.
• Learn about the attitudes and behaviours of consumers: This study uses information from a proprietary survey to identify and interpret key Buy Now Pay Later KPIs, such as spending by age, gender, and income level.
• Create profitable and proactive business plans by utilising market research and a forward-looking study of BNPL market spend and significant prospects in Japan.