Top 6 Preferred Payment Methods for Online Shopping in Japan

Japan’s e-commerce market is one of the most unique and dynamic in the world, blending traditional preferences with rapidly evolving digital trends. Understanding how Japanese consumers prefer to pay online is essential for businesses and platforms looking to succeed in this space. From the widespread use of credit cards to the distinctly local konbini (convenience store) payments and the rise of mobile apps like PayPay, Japan offers a fascinating mix of payment options. In this article, we break down the top payment methods shaping online shopping behavior in Japan—and what each means for your e-commerce strategy.

Preferred Payment Methods for Online Shopping in Japan

1. Credit Cards
2. Convenience Stores
3. eWallets and QR Code Payments
4. Bank Transfers (Furikomi)
5. Cash on Delivery (COD)
6. Carrier Billing

1. Credit Cards

Credit cards remain the dominant payment method for online shopping in Japan. Visa, Mastercard, JCB, and American Express are widely accepted across various e-commerce platforms. Many Japanese consumers also use credit cards tied to loyalty programs or reward points, such as Rakuten and Aeon. The trust and security provided by established credit card companies make them the go-to option for most shoppers.

2. Convenience Stores

Convenience store payments, or konbini payments, are a unique and highly popular payment method in Japan. After selecting this option at checkout, consumers pay in cash at nearby convenience stores like 7-Eleven, Lawson, or FamilyMart. This method is prevalent among younger shoppers and people without credit cards. It’s also often used for purchasing concert tickets or online items where anonymity is preferred.

3. eWallets and QR Code Payments

eWallets and QR code payments are rapidly gaining popularity, thanks to smartphones and a push for cashless transactions in Japan. Popular platforms include PayPay (by SoftBank and Yahoo Japan), the largest Japanese mobile payment app with 38 million users; Rakuten Pay; d Payment (by NTT Docomo); and LINE Pay. Younger consumers and mobile-first shoppers prefer these methods, and they often come with added benefits such as loyalty points or cashback offers, further driving their usage.

4. Bank Transfers (Furikomi)

Bank transfers, or furikomi (振込), are still commonly used for online shopping, particularly for larger purchases or business-to-business transactions. Consumers can make manual payments through ATMs or online banking services. While bank transfers are trusted, they are slower and less convenient than other methods, making them more popular with older generations or for specific purchases.

5. Cash on Delivery (COD)

Cash on delivery, or COD, is a declining but still available payment method in Japan. With this option, buyers pay in cash upon delivery of the goods. This method is most commonly used for products delivered by services like Yamato Transport (Kuroneko) or Sagawa. It remains a trusted option for older consumers or those who are cautious about online payments, although its usage is shrinking due to the rise of digital payments.

6. Carrier Billing

Carrier billing is another popular payment option in Japan, especially among younger consumers familiar with mobile payments. It allows consumers to make online purchases and charge the cost directly to their mobile phone bill. This method is particularly popular for in-app purchases, digital downloads, and subscriptions. Major mobile carriers like Softbank, Rakuten, au (by KDDI), and NTT DOCOMO offer carrier billing as a payment option.

Conclusion

Japan's online shoppers value convenience and trust, which is reflected in their diverse payment preferences. While credit cards continue to dominate, alternative options like eWallets and carrier billing are quickly gaining ground, especially among younger generations. For e-commerce businesses, offering a variety of localized payment methods isn’t just a nice-to-have; it’s a competitive advantage. By aligning with these preferences, you’ll build trust, improve conversions, and deliver a smoother checkout experience tailored to the Japanese market.