PUBLISHER: IMARC | PRODUCT CODE: 1954434
PUBLISHER: IMARC | PRODUCT CODE: 1954434
The Japan POS device market size reached USD 1,061.6 Million in 2025 . Looking forward, IMARC Group expects the market to reach USD 2,482.5 Million by 2034 , exhibiting a growth rate (CAGR) of 9.90 % during 2026-2034 . The market is driven by an increase in buyer expenditure due to the adoption of digital payment methods, incorporation of sophisticated features like artificial intelligence (AI), cloud-based solutions, and integrated payment systems, and rise in financial support and incentives for cashless payment systems.
Rise in Consumer Spending and Retail Digitization
Japan's increase in buyer expenditures on account of the adoption of digital payment methods is leading to the development of the point-of-sale (POS) devices. Since more individuals now opt for cashless transactions, the demand is growing among retailers encouraging them to shift towards contemporary POS systems with digital payment alternatives like credit cards, mobile wallets, and quick response (QR) codes. This shift toward digitalization can be seen largely in the transportation, hospitality, and retail segments, where people are looking for quicker, easier payment options. In addition to this, measures taken by the Japanese government toward cashless transactions and digital economic development is driving the adoption of POS units, keeping the businesses competitive as well as capable of fulfilling the changing needs of customers for uninterrupted, contact-free transactions. The cashless payment ratio in 2024 was recorded 42.8% and the government goal of 40% was fulfilled. The Ministry of Economy, Trade and Industry is continuing to make essential improvements to boost the ratio to 80%.
Technological Advancements in POS Solutions
Technological innovation is acting as a driving force behind the development and uptake of POS devices in Japan. The incorporation of sophisticated features like artificial intelligence (AI), cloud-based solutions, and integrated payment systems is improving the functionality of POS devices, providing businesses with increased efficiency and flexibility in operations. The emergence of contactless payment solutions, such as near field communication (NFC) standards, is further driving the adoption of high-end POS terminals across industries. These technological developments enhance transaction velocity, security, and user experience, catering to both needs and regulatory expectations. With Japanese companies, especially small and medium-sized enterprises (SMEs), looking for low-cost options with strong features, the need for innovative POS systems is rising. In 2024, DIGI I's declared the completion of its new southwest factory in Japan, developed specifically for the creation of POS systems, and South Factory, a hybrid facility merging manufacturing and warehouse functions.
Government Support for Cashless Payment Systems
The government of Japan is encouraging the fast-paced adoption of POS devices by providing financial support and incentives for cashless payment systems. The government initiated its "Cashless Vision" to expand cashless payment usage, a dramatic shift from the nation's cash-oriented past. As per an article by Equinix, the government of Japan plans to double cashless transactions to 40% between now and 2027. This has spurred businesses, particularly SMEs, to use POS devices and electronic payment systems. Also, the government's launch of several subsidy programs, including the "Cashless Payment Point Program," which rewards cashless payments with discounts and rebates, is encouraging people and merchants to adopt cashless systems. As such policies continue to drive for greater adoption of cashless transactions, demand for contemporary POS systems that can accommodate multiple modes of payment is increasing.
The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.