Asia-Pacific · GDP rank #3

Japan

JP · JPY @ 0.0063/USD

The cashless share climbed from 21% in 2017 to 42.8% in 2024 — METI's 40%-by-2025 target hit a year early. Mobile QR codes (PayPay above all) have absorbed the bulk of incremental growth; cards — particularly credit — still carry the value. JCB retains a meaningful domestic share; Zengin is a 50-year-old rail being incrementally modernised, with Wise becoming the first non-bank to join via direct API in late 2025.

Tab 03

Rails & infrastructure

The instant rail, the RTGS spine, the card switch, the direct-debit scheme, and the country's CBDC stance. Each rail is reported with operator, launch year, and 2024 flow so the relative scale across rails is readable at a glance.

CBDC status is deliberately granular: live, pilot, preparation, live stalled, and sceptical, no pilot are different things.

CBDC · Pilot

BOJ's pilot programme runs through 2026 with no commitment to issuance. Phase 3 (from April 2025) tests offline functionality, holding limits, and integration with commercial-bank distribution. The stated policy stance is 'if a decision to issue is made', reflecting political and privacy debate in the Diet and industry. Tokenised-deposit infrastructure (MUFG Progmat, Mizuho J-Coin) is running in parallel.

Pilot

Instant payments

Zengin System (with More Time extension for 24/7)

The instant leg typically carries the vast majority of retail consumer flow in modern payment systems — and sits in direct tension with card networks and wallets for the same transactions.

Operator
Japanese Banks' Payment Clearing Network (Zengin-net)
Live since
1973-04-09

Transactions · 2024

1.7B

txns/year · 2024

Cleared value · 2024

¥3,380T

JPY/year · 2024

Participating institutions

1,100+

institutions · 2024

Alias registrations

N/A

— · 2024

Rail features

  • 24/7 via More Time Service since October 2018
  • Legacy fixed-format messages; migration to ISO 20022 planned for ZS-8 core in 2027
  • Per-transaction cap at ¥100m for instant credit
  • No alias/QR identifier — relies on bank and account number
  • Cobalt project: planned layer for confirmation-of-payee and mandate management

RTGS

Real-time gross settlement

The RTGS spine clears high-value interbank flow — including the settlement of the instant-rail cycles and card-network net positions. Transaction count is modest; cleared value is enormous.

Transactions · 2024

18M

txns/year · 2024

Cleared value · 2024

¥36,400T

JPY/year · 2024

Open banking

Regulatory and technical posture

Regime
Revised Banking Act API disclosure regime
Live Since
2018-06-01

Open API connections (TPP contracts)

320+

registered TPPs · 2024

Monthly Open API calls

not publicly disclosed

— · 2024

Full reference