Starting October 1, all card payment terminals installed in Japan will support contactless payments, in contrast to the slower adoption of contactless-enabled terminals in South Korea.
According to local card industry sources, Japan will mandate contactless payment functionality on all card terminals by October 1, following revisions to international card brand regulations. Terminals without contactless capabilities will be unavailable from September 30. The transition will involve terminals supporting three payment methods: magnetic stripe cards, IC cards inserted for payment, and contactless payments.
Japan's years-long push for a cashless society has culminated in the mandatory adoption of contactless payment terminals. The country's Ministry of Economy, Trade and Industry aims to raise non-cash payment ratios (e.g., credit cards) to 65% by 2030. Government-driven shifts in payment methods have led to declining cash payments and rising card usage. Among Japanese households with two or more members, the share of card payments increased from 26.7% in 2020 to 36.3% in 2025, while cash payments fell from 43.1% to 35.3% over the same period.
Contactless payments now account for over half of all card transactions in Japan. Visa reported that contactless payments made up approximately 64% of total credit card transactions in Japan as of March this year. Open-loop transit payments have also expanded to 45 prefectures and over 220 transportation operators. With contactless-enabled terminals increasing in general merchant locations beyond transit, further growth in non-contact payments is expected.
As contactless payments gain traction in Japan, their use among Japanese visitors to South Korea has surged by approximately 80% year-on-year—outpacing the growth rate of contact-based payments (around 55%).
However, domestic adoption of contactless terminals in South Korea lags behind rising demand. While Naver and Toss are rapidly expanding their terminal networks, the overall rollout remains slower compared to global markets. Currently, Naver (approximately 100,000 terminals) and Toss (approximately 400,000 terminals) account for about 17% of South Korea's roughly 3 million credit card merchant locations.
A card industry insider noted, “While demand for contactless payments is growing domestically, merchants see no urgent need to replace terminals since IC card insert payments suffice. Without mandatory requirements, widespread adoption will remain challenging.”
