In recent years, many new and user-friendly ways to pay while shopping on internet-based platforms have emerged. One of these, online payments, has become an indispensable part of our daily lives. Businesses, too, are advancing the development of payment infrastructure regardless of their scale to ensure the success of their own operations.

Payment infrastructure development plays a central role in digital transformation (DX), which applies digital technology to create new value and improve everyday life. In retail, DX initiatives include building modern payment infrastructure alongside online-merge-offline (OMO) strategies that integrate ecommerce sites with physical stores—an approach widely adopted across Japan’s retail sector.

Furthermore, DX is recommended for large companies as well as sole proprietors, particularly for introducing diverse digital payment methods. Still, some individuals running their own businesses might feel that implementing these systems presents significant hurdles, such as strict screening requirements or the need for advanced safety protocols. Although online remittance requires some setup and involves transaction fees, independent operators can integrate them without difficulty.

This article focuses on sole proprietors thinking about offering digital payment solutions. It covers why incorporating these features matters, how to implement them, their benefits and key points, and how to choose a payment connection process.

What’s in this article?

• What are online payments?
  
• Reasons why sole proprietors need to adopt online payments　
  
• Types of online payments
  
• Methods for implementing online payments that sole proprietors need to know
  
• Advantages for sole proprietors who adopt online payments
  
• Points sole proprietors need to consider when adopting online payments
  
• How to choose a payment processing service and connection methods for online transactions
  
• How Stripe Payment Links can help
  

What are online payments?

The term “online payments” describes money transfers completed via the web. In other words, any way of paying that uses the internet falls into this category. For instance, in Japan, Konbini (convenience store) payments are cited as a prime example of online checkout methods (types of these solutions, including Konbini payments, are introduced below).

Web-based transactions eliminate the need to handle cash at checkout and, depending on the platform, can also offer points or cash back. As a result, many buyers favor them because they allow people to shop while saving money.

Strictly speaking, the phrase “online payments” covers cashless transactions completed entirely through digital channels. While pre-orders placed via ecommerce sites or apps fit this group, this article will use the broader definition above and treat in-person settlements at convenience stores as online payments.

Reasons why sole proprietors in Japan need to adopt online payments

The broad adoption of online payment structures is the main reason sole proprietors incorporate them.

The use of cashless methods, including web payments, has been steadily increasing for many years. According to a graph released by the Ministry of Economy, Trade and Industry (METI) in March 2025, the rate of electronic payments in the country reached 42.8% in 2024, exceeding the government’s target of 40%. This figure is approximately three times the 2011 level of 14.1%, clearly demonstrating the increase.

Beyond that, the Japanese government states that it will continue to advance the necessary infrastructure improvements to achieve 80% in the future. Against this backdrop, implementing electronic payment systems is considered central for business growth, including for independent business owners.

Types of online payments

The sections below outline the primary online payment options. When thinking about offering any of these, independent business owners need to assess their target audience for the goods and services provided and determine if there is enough demand for each payment method before making a decision.

Credit card payments

According to METI, credit card payments are the most frequently used way to pay in Japan. Therefore, these must be treated as a top choice.

Compared to other cashless solutions, enabling credit card payments lowers the barrier for people to make purchases, since cards are so prevalent. This makes it easier for buyers to acquire high-priced goods and offerings.

Bank payments

Bank payment methods include direct payments from the customer’s account to a designated payee, such as bank transfers and automatic debits on specified dates. Businesses rely on these arrangements in transactions where trust between the two parties carries significant weight—especially in business-to-business contexts—and place high value on them when working with corporate partners or managing high-value items.

Carrier payments

Carrier payments is an option available to those who have a contract, letting them pay for goods and services by adding the cost to their phone bill. Carrier billing allows people to shop online without the hassle of completing a separate step, making it accessible to those lacking a card. It’s a worthwhile choice when focusing on younger shoppers who might not possess one.

Konbini payments

Konbini payments are a convenient way for customers to pay for web purchases at nearby convenience stores. Like mobile carrier billing, these do not require a credit card. Shoppers finalize purchases around the clock thanks to the widespread presence of convenience stores in Japan.

Electronic money payments

Electronic money functions are available through loading funds or linking to a credit card. Examples include mobile PASMO and mobile Suica, which are electronic money (e-money) apps used to pay transit fares for trains and buses. E-money payments are well-suited to small transactions and are commonly used in brick-and-mortar locations such as convenience stores and drugstores, as well as for public transit.

QR code payments

QR code payments involve scanning a displayed code with a smartphone and finalizing the purchase using a dedicated app. PayPay and Rakuten Pay are well-known examples and these systems have been widely adopted on both ecommerce sites and at physical locations. With this process, the amount is charged to the linked credit card or bank account.

QR-based settlements require a smartphone, making it unsuitable for groups without these devices or for those unfamiliar with their use. It is important to factor in the tech literacy of the intended audience when evaluating this function.

Buy now, pay later

Buy now, pay later (BNPL), as the name suggests, is a deferred payment method that enables shoppers to acquire goods immediately and settle the cost later. A key feature is that no funds are needed at the time of purchase, reducing pressure and making it easier for customers to act on their desire to buy. While BNPL has steadily grown in use, primarily in online retail such as ecommerce sites, it is less familiar than card-based solutions. For this reason, when considering introducing this alternative, it is advisable to conduct market research, including competitor comparisons, to gauge actual demand.

Methods for implementing online payments that sole proprietors need to know

There are two approaches for implementing online payment systems. One is to enter into direct agreements with payment processors; another is using processing solutions provided by fintech companies and similar businesses.

Directly contracting with payment services involves separate agreements and reviews for every provider, along with distinct preparatory steps. Each integration also calls for its own setup process and specialized knowledge.

In contrast, a payment service provider handles the various procedures required for setup on your behalf. Many view this as highly user-friendly, as it permits the addition of several ways to pay simultaneously. Moreover, beyond handling contract negotiations with different providers, you can also take advantage of the management systems these companies offer, improving your back-office operations.

Advantages for sole proprietors who adopt online payments

When a sole proprietor introduces online payments, they can gain the following benefits:

Expanded sales

By adopting a range of digital settlement options for your offerings and expanding available ways for patrons to pay, you can appeal to a broader customer base and offer enhanced convenience, leading to increased sales. What’s more, if the goal is to attract both domestic and international buyers through cross-border ecommerce, incorporating payment methods tailored for global reach will be very effective.

Simplified operations

As explained above, adopting web-based payments via an external company saves time and effort when adding multiple settlement options. Additionally, a single portal centralizes data such as sales and purchase history, helping avoid unpaid invoices while reducing administrative and accounting workloads.

Centralizing the framework will simplify the analysis of sales trends and client acquisition rates, enabling more effective marketing strategies.

Points sole proprietors need to consider when adopting online payments

When setting up digital settlement solutions, it is imperative to pay close attention to the following points:

Security measures

When rolling out online payment systems, it is important to put user safety first and deploy rigorous security measures. Although highly unlikely, a breach could seriously harm trust, leading to notable drops in revenue. Hence, making sure safety protocols are as strong as possible and taking steps to prevent fraud by malicious third parties has become a top priority for all businesses involved in electronic payments.

Payout cycle

The payout cycle will vary depending on the chosen settlement platform. Keep in mind that funds could take time to arrive to your account. To protect cash flow, it is wise to carefully assess the cost-effectiveness of the implementation costs for digital payments and their ongoing expenses, such as service fees and system usage charges. You must pay close attention to payout timing and ensure financial stability.

How to choose a payment processing service and connection methods for online transactions

The kind of processing service required varies depending on the industry, characteristics, business type, and customer base. When introducing online payments and using a processing provider, the following criteria must guide the decision:

• Transaction fees: Keep transaction fees from cutting too deeply into profit margins. Still, price alone isn’t sufficient—evaluate the available support system and features.

• Payment methods: Make sure that you support the payment methods that meet your customers’ needs, such as card-based and e-money solutions.

• Billing methods: For subscription-based models, select a platform that supports repeat billing rather than single payments.

• Extra features: Check the details of additional tools that could benefit your company, such as tools to generate receipts and invoices, and customer management functions that are automatically updated.

When linking payment services to your business, there are several different connection methods, including:

Links

The link-type integration, also known as a “screen transition,” is a connection practice in which the buyer enters the required details (name, credit card number, etc.) on a checkout screen hosted by the payment service provider to complete the transaction. When a customer confirms an order on a digital storefront, they are automatically redirected to the platform’s payment interface to finish the purchase by following the on-screen instructions. Because the ecommerce site operator does not have to build or oversee the payment page, this way is seen as relatively low-effort for the business.

Furthermore, the link-based approach functions on social platforms and blogs, not just on web stores. No-code payment tools enable the transition to checkout interfaces. These solutions let you paste payment links directly into social media or blog posts, embed pay buttons, or generate QR codes that guide buyers to the appropriate screen.

Also, since card details are stored and managed by the payment processor, this lowers the risk of information leaks from the ecommerce site.

That said, the checkout interface is managed by the external platform, so its appearance might differ from the web shop’s branding or use the same domain.

Tokens

The token type connection, sometimes referred to as the “JavaScript type” due to its use of JavaScript, encrypts settlements by converting the purchaser’s card info into a different string. With the token approach, checkout is finished directly on your ecommerce site’s payment screen, without redirecting to another company’s interface, as with the links method.

The details entered by the buyer on the store’s checkout section are transmitted straight to the payment processor, bypassing the merchant’s own servers. The transfer is then processed using a token generated on the platform. In other words, since merchants do not need to retain or manage each customer’s credit card information, this is considered the most robust security approach.

With this setup, shoppers remain on the same website during checkout, lowering the risk of cart abandonment.

Yet, embedding JavaScript programs for payment processing on your ecommerce site also requires you to prepare custom checkout sections, which demands considerable time and effort. Tokens generated by the platform eventually expire, and once they do, the settlement cannot proceed. Expired tokens can lead to cart abandonment.

Data transfers

The data transfer integration, also known as the API type, involves the site operator building an SSL server and sends customer payment information to the platform for processing.

For this setup, records such as card info entered by the purchaser on the ecommerce site’s checkout page are transmitted via the shop’s server to the payment platform and then shared with the financial institution handling the transfer. The ecommerce business receives the results from the financial institution through the platform’s server.

The data transfer type, such as token-based systems, integrates payment functionality into the merchant’s dedicated website and completes the entire process there, thereby reducing the number of screen transitions. This type also allows you to build checkout pages that align with the rest of your ecommerce site’s image, style, and concept, and to use your own domain.

For those choosing the data transfer method, the website must be PCI DSS-compliant. It is thus wise to fully understand that building these sections takes substantial effort and expects robust security measures.

Email links

Email links let sellers send a payment URL to buyers through email or SMS. Clicking the link opens a checkout interface where the buyer finishes the transaction. In some cases, QR codes replace text-based URLs.

Email link payments remove the need to create a checkout page within your ecommerce site. Instead, the payment processor hosts the interface and handles the exchange. This approach works well for online orders, phone orders, pre-sales, and transactions in which the parties determine the amount after quote negotiations.

However, errors in entering the registered email address or issues with the recipient’s settings could prevent emails from arriving. In these instances, settlement delays might occur, necessitating follow-up with the purchaser.

How Stripe Payment Links can help

Stripe Payment Links is a no-code solution that allows you to quickly create and share secure payment pages online.

Payment Links can help you:

• Get paid faster: Share custom payment links with customers and accept one-time or recurring payments instantly, without invoicing or complex integrations.

• Improve conversion: Boost payment conversion rates with a mobile-optimized design and streamlined checkout experience.

• Save time: Easily create, customize, and share payment pages through the Stripe Dashboard—with minimal coding.

• Expand globally: Accept payments from customers worldwide, with Adaptive Pricing localizing prices for 135+ currencies and offering local payment methods that are ready to use.

• Access other Stripe products: Integrate Payment Links with other Stripe products—such as Stripe Billing, Stripe Radar, and Stripe Tax—to add more payment capabilities.

• Maintain control: Customize the look and feel of your payment pages to match your brand, and track all your payment activities in one place.

Learn more about how Payment Links makes it easy to accept online payments, or get started today.