Cashless payments have become increasingly prevalent in recent years, with a growing range of choices available. In Japan, customers can make cashless transactions at convenience stores, supermarkets, restaurants, and vending machines using various payment methods.

On digital storefronts such as ecommerce malls (or EC malls), it’s important to offer multiple checkout options to keep the experience convenient and straightforward. Business owners who operate an ecommerce site must familiarize themselves with the most common payment methods. This enables them to select the approaches best suited for their store.

In this article, we’ll examine Japan’s top ways to pay on ecommerce sites. We’ll also explain the means used to connect payment systems to online stores and how to choose the right checkout options for any given site.

What’s in this article?

• Frequently used payment methods in Japanese ecommerce
  
• How can ecommerce businesses in Japan select the right payment method?
  
• How are payment systems connected to an ecommerce site?
  
• Why businesses benefit from adopting multiple payment methods
  
• Questions to ask when selecting a payment processor
  
• How do the right payment methods improve customer satisfaction?
  

Frequently used payment methods in Japanese ecommerce

In Japan, credit card transactions and convenience-store (Konbini) payments are widely recognized ways to pay for ecommerce. However, a wide variety of other choices are also available. Online shops have adopted several additional means beyond the typical card and Konbini approaches.

Below is a breakdown of the most popular payment methods when purchasing products online in Japan, according to a 2023 report conducted by the Ministry of Internal Affairs and Communications (MIC):

• #1: Credit card payment at 76.7% (75.9% in 2022)
  
• #2: Electronic money payment (QR code, Rakuten Edy, Suica, etc.) at 38.5% (34.8% in 2022)
  
• #3: Konbini payment at 34.7% (36.4% in 2022)
  
• #4: Interbank and intrabank transfers at banks, post offices, or ATMs at 23% (23% in 2022)
  
• #5: Transfer via online/mobile banking at 21.9% (19% in 2022)
  
• #6: Cash on delivery at 17.8% (20.5% in 2022)
  
• #7: Carrier payment (added to telecommunications fees) at 16.2% (17.5% in 2022)
  

Notably, while Konbini payments held the second spot in 2022 at 36.4% of shoppers, electronic money transactions overtook it by approximately 4% in 2023. This indicates the strong growth in digital wallets. Similarly, online and mobile banking transfers surpassed cash on delivery (COD) transactions compared to the previous year.

Credit card payments continue to maintain an overwhelming share of the market. Still, it is clear that the number of people who favor alternatives, such as electronic money, is steadily climbing.

Let’s take a closer look at each method below.

Credit cards

Credit cards enable customers to purchase goods and services on credit, paying for them at a later date. When someone checks out with a card payment on an online store, the transaction isn’t immediately finalized. Instead, the amount is charged and withdrawn from their linked bank account on a set date each month.

In other words, with card payments, funds aren’t moved until the order is processed. Shoppers therefore don’t need cash on hand when ordering, and cards remain the top way to pay for online shopping.

Electronic money

Electronic money is a form of digital fund that can be used in place of physical cash. As both information technology and communications infrastructure have advanced, electronic money payments are becoming increasingly common not only in Japan but worldwide.

There are various types—IC cards such as Suica (prepaid, rechargeable smart cards initially used by JR East) and smartphones, which are the most popular. This system involves prepaying funds or linking a credit card to enable payment. Users can make purchases on an ecommerce site with electronic money by registering their wallet details on a smartphone or other device.

Konbini payment

Konbini checkout lets shoppers pay at convenience stores nationwide, 24/7—ideal for those who don’t have credit cards or prefer not to enter their card details online.

When this method is selected, the customer receives a payment slip with the necessary details. Some businesses use a paperless system instead, issuing a payment number online instead of a physical slip.

To pay using a slip, the shopper simply presents it at the register and pays the amount due. For paperless payments, the customer either provides the payment number to the cashier or enters it into a self-service terminal in the store, then follows the on-screen instructions to complete the transaction.

Bank transfers

Bank transfers are another standard option; let’s take a look at a few examples of how they work:

Transfer via ATM or at the counter

Bank transfers, also known as “Furikomi” in Japanese, are a method of pay that many people in Japan are familiar with. The customer wires the payment to a bank account specified by the seller. Some sites require upfront purchase, shipping the product only after confirmation. Others allow shoppers to pay after delivery once they’ve received the item. Payments can be made in several ways: through a financial institution, a postal banking counter, or an ATM. Alternatively, customers can use internet or mobile banking services to complete the transfer online.

Transfer via online/mobile banking

Online and mobile banking make it straightforward to transfer money and check account balances using a computer or smartphone. In the past, the standard way to handle banking was to bring a paper passbook to a bank teller or ATM.

MIC data show 23% still rely on tellers and ATMs, while 21.9% use digital wires—up from 19% the previous year.

Cash on delivery

COD lets the shopper pay the courier at their door. The delivery company then transfers the payment to the seller. While usually cash, some carriers now also accept credit or debit cards.

The MIC survey also mentioned the use of COD declined from 20.5% in 2022 to 17.8% in 2023, resulting in it falling behind online and mobile banking in popularity. This shift underscores the ongoing transition from cash-based transactions to more digital methods.

Carrier payment

The term “carrier” here refers to mobile phone service providers such as Docomo, au, SoftBank, and Rakuten Mobile. Carrier payment is a service offered by these providers that allows users to pay for purchases made on digital storefronts by adding the cost to their monthly mobile phone bill. Selecting carrier billing at checkout adds the product price to the user’s regular telecommunications charges. This method is especially popular among individuals who prefer a straightforward and efficient payment process with minimal extra steps.

How can ecommerce businesses in Japan select the right payment method?

So far, we’ve reviewed the various payment options commonly used on ecommerce sites. Attempting to implement all of them would result in significant upfront costs, as well as ongoing expenses. Moreover, investing in a system might see little to no use if it doesn’t meet your customers’ needs. With numerous choices available today, it’s key to carefully research which methods are the best fit for your business before deciding which ones to adopt.

Consider your products and services

Before choosing a payment method, ensure it aligns well with the products your ecommerce site offers. For example, when purchasing higher-priced items such as furniture or brand-name clothing, relying solely on COD means the customer must prepare some money in advance. From a security standpoint, most people prefer not to carry large amounts of currency.

Beyond safety concerns, cash-only transactions require shoppers to withdraw money from their bank, which can be an inconvenience. Additionally, many prefer to pay for expensive items in installments. If payment must be made in a single lump sum—as is the case with COD—some might decide not to complete the purchase.

Given these factors, and as cashless checkout grows, it’s important to provide credit cards with installments plus alternatives such as electronic money and carrier billing.

Consider your customers’ demographics and preferences

The payment methods customers choose tend to vary based on the age and gender of the target audience for a digital storefront. For example, younger generations are generally very comfortable with cashless transactions, while older shoppers might still prefer to pay with cash. Additionally, teenagers and people in their twenties who have never owned a credit card often favor Konbini and carrier payments—so include these if that’s your target.

In short, ecommerce site owners need to clearly understand their target audience and tailor payment methods based on the age and gender of their customers.

How are payment systems connected to an ecommerce site?

There are four ways to integrate a payment system with an ecommerce site:

Link

With the link method, shoppers are redirected from the store to the gateway’s checkout page to complete the transaction. When users click the “Buy” button on an order page, they’ll be taken to the processor’s portal to enter their billing details.

This approach simplifies integration, as the ecommerce business only needs to follow the provider’s setup instructions. The seller itself does not need to build a checkout screen from scratch. Since customers’ personal information is stored and managed on the processor’s servers, the online store operator can run their business with greater peace of mind.

Token

The token method processes payments by replacing sensitive information, such as the customer’s credit card number, with a generated string of text known as a token—a process referred to as tokenization. Because tokens are used instead of storing actual card data, this approach is considered highly secure.

Unlike the link method, token integration requires ecommerce sites to add a JavaScript program. This keeps the checkout flow within the site without redirecting shoppers elsewhere, reducing the likelihood of users abandoning their purchases midway.

Data transmission

In the data transmission method, the ecommerce site owner sets up an SSL-secured server and sends payment information collected from buyers directly to the provider. Like the token option, this approach fully embeds transaction functionality within your ecommerce site, allowing customers to complete payments without leaving. Because it enables the creation of highly customized pages tailored to a specific business, it’s mainly adopted by large stores with high order volumes or those built in-house rather than on an ecommerce platform.

Email link

The email link method sends a URL to the customer via email or SMS. When the link is clicked, the user is taken to the payment processor’s page to finish the checkout. Sometimes, a QR code is used instead of a URL.

This approach doesn’t require building a cart or payment page on your site, making transactions quick and straightforward through the provider’s platform. It’s also well suited for taking orders by phone as well as online.

Why businesses benefit from adopting multiple payment methods

To give customers a simple, convenient experience, it’s ideal to provide a variety of ways to pay. Offering multiple payment options will appeal to a broader range of shoppers and ultimately enhance your ecommerce site.

Although credit cards are the leading means to pay, business owners are advised to take it a step further. Limiting your checkout options to cards alone could result in the loss of customers who prefer electronic money transactions or COD, possibly leading to cart abandonment. The key to encouraging buyers to choose your ecommerce site is offering payment methods they regularly use in their daily lives.

Questions to ask when selecting a payment processor

Using a payment processor makes it easier to introduce several checkout paths at once. While many platforms exist, consider the following questions to determine the best fit for your business:

What payment methods would you like to offer?

Ensure the payment processor supports the methods you need. Understanding your audience is paramount—choose one that can handle as many paths as possible. If you’re targeting overseas customers, it’s especially important to provide the methods preferred in those countries. When selecting a provider, ensure they can flexibly accommodate the payment options required for cross-border ecommerce.

Do the fees match the quality of the service?

Before deciding, compare setup costs and monthly charges to ensure they align with the benefits delivered. Extra fees can apply for complex tasks or premium features; please review the optional services included. To avoid unexpected costs, clarify all fees with the provider upfront.

What security measures are in place?

Protecting your customers’ personal information is central to building trust. A single data breach can cause significant damage—not only losing customers but also harming your business’s reputation and sales. For this reason, selecting a payment processor with robust safety measures is a top priority for any organization.

Some key security-related points to check are shown below:

• The payment processor you are considering has rolled out its security measures
  
• 3D Secure 2.0 (mandatory as of March 2025) has been implemented
  
• The processor complies with the PCI DSS international security standard for credit card information
  
• The business has obtained PrivacyMark, awarded to those that meet established standards for protecting personal information
  
• ISMS accreditation (a certification that system operations meet security standards) has been obtained
  

How do the right payment methods impact customer satisfaction?

Successful ecommerce relies on tailoring to your audience. With payment options continually evolving, it’s a good idea to choose a provider that not only supports a wide variety of methods but can also adapt flexibly to future changes.

It’s also reassuring to work with a processor that provides strong support for operating and managing ecommerce sites in addition to offering checkout solutions.

Stripe supplies a wide range of tools and features to support various payment methods—including credit cards, Konbini payments, and bank transfers—plus analytics and revenue management to enhance the efficiency of day-to-day operations. By adopting Stripe Payments, you can create a customized environment tailored to your business without having to build your own system. Stripe also meets all PCI DSS security standards, ensuring a safe experience for shoppers.

Using Stripe simplifies transactions and reduces operating costs. By offering multiple payment methods, you can fine-tune your site’s usability and increase sales. If you’re looking to improve your ecommerce payment setup, contact Stripe to find the best solutions for your business and support throughout the adoption process.