Market environment for credit business
Credit facilitation volumes for shopping credits in private-sector final consumption expenditure have been solid.
With consumer needs diversifying, shopping credit demand is solid for such big-ticket purchases as home renovations and automobiles and for discretionary goods.
Market environment for credit card business
Usage of credit cards for shopping have increased every year.
Under the revised Japan Revitalization Strategy that formulated in 2014, the Japanese government highlighted the need for greater settlement convenience and efficiency by popularizing cash-less settlements by the 2020 Tokyo Olympics.
With consumer spending stagnating, Japanese companies are striving to improve consumer convenience and attract more users by giving away points. The situations in which consumers can use credit cards have thus rapidly expanded, with these cards becoming available for all sorts of lifestyle services.
In Japan, credit card shopping accounted for 18.0% of total private-sector consumption expenditure in 2016. The ratio in the United States was 25.8% that year. There is still some scope for more credit card shopping in Japan. The situation has thus intensified competition among shopping credit and credit card companies as well as among entities outside the financial services sector, such as telecommunications and retail companies, which have entered the arena to attract new customers.