Konbini, which means “convenience store” in Japanese, is a local cash-based payment method in Japan. Used commonly in convenience stores and other vendor-based payments, the payment method is actively used for up to 10% of payments within Japan. Local consumers are accustomed to paying their phone bills, online orders, games, movie tickets, and so much more in one of the 55,000 convenience stores. Konbini has developed a reputation for being a trusted payment source in the country, thanks to the safe nature of Konbini payments.
Konbini is also referred to as convenience store payment because of the common use of the payment in regular stores within the country. The payment method is actively used by millions of people in the country because of the seamless nature of payments at the stores. The increase in digital payment adoption has been another factor in enhancing the growth of Konbini in Japan.
Key Features of Konbini payment method in Japan
Konbini offers a number of key benefits that make it lucrative for the local audience. Here are the key features of Konbini payments that make them so popular within the country.
Because of the fact that Konbini payments are entirely cash-based, customers don’t have to worry about providing credit cards and sensitive information to shop keepers while handling the payments. The payment made by the shopper is logged into the system, and the purchase reserve is maintained. For shoppers, the cash payment element is a great way to maintain their privacy and seamlessly conduct their shopping without having to maintain an electronic payment method. A wide majority of the Japanese consumer segment is conscious about their privacy and having a cash-based payment amplified the consumer applicability of the payment.
Konbini payments allow shoppers to reserve their payments for up to 7 days when done through online purchasing mechanisms. The purchasing process reserves the products, and then customers visit the in-store vendors and make the cash payments to receive the products and complete their purchasing process. The production reservation ability is a highly demanded customer feature for products that are in limited demand and require customers to make advanced bookings before they can complete their purchase. The reservation feature is also commonly used for grocery shopping to optimize purchases using digital shopping with cash payments.
Trusted Local Payment
Konbini payments are considered to be highly trusted in Japan and Taiwan because of their proven history of use over the past years. The payments have been actively used by millions of people for their regular purchasing requirements and have now attained widespread trust. The nature of the payments also enhances trust by removing privacy concerns and streamlining the payment management for people. In a country where credit card acceptance is significantly lower than surrounding regions, offering a recognized payment method amplifies trust for local consumers.
According to a recent survey by Shopify Japan, introducing Konbini payments can result in an increase in sales up to 25%, depending on the sales niche of the company.
Depending on the nature of the merchant business, offering Konbini payments can be a significant factor in enhancing sales and bringing in additional revenue for the company. A wide customer segment in the Japanese market prefers to deal with vendors that provide Konbini payments. Catering to the customer segment can result in additional revenues and enhance customer engagement with the brand.
How does Konbini payment work?
Konbini works by tapping into the combination of online purchase selection and cash payments. Customers make purchases by going online and exploring the list of products that they want to purchase. Once they decide on the product list, they can select the Konbini payment count and make the payment for the selected products through counters on convenience stores. The payment works by the integration of the data into the Konbini system and then the handling of the payment by the local convenience store employee.
Konbini payments typically allow customers to make purchase reservations for up to seven days. This mechanism allows customers to pre-book their desired items and then make the payments physically in-stores within the week of the online selection. The payments can be made at any of the 55,000 localized payment stores in Japan. The range of stores accepting Konbini payments is also actively expanding at a rapid rate to provide broader convenience to consumers in the Japanese payment system.
Oceanpayment Payment Solution for Japan
Having an integrated payment management system can simplify payment integration by providing an all-encompassing solution to the payment challenges present in the country. Especially in the context of a country like Japan, it is essential to have a personalized solution that is able to cater to the domestic challenges present in the region. Merchants need to explore the dynamics of the market and opt for a solution that covers the behavioral dynamics of the local market.
Oceanpayment is a comprehensive payment solution that provides across-the-board coverage for domestic users. Our payment solution provides the complete support infrastructure for local merchants to manage online payments with seamless integration with Pay-Easy and online banking solutions. Oceanpayment solutions are also designed to align with the regulatory requirements of the local banking authorities to provide a secure payment handling solution that covers the required usage allocations. Oceanpayment also maintains a localized presence in the Japanese market to deliver a customized solution based on the dynamics of the local market. The system infrastructure is designed to enhance engagement and improve merchant conversion with intuitive analytical tools and support. The system manages the internal revenues on a regular basis with a minimal handling fee associated with the integration of the system. The payment handling infrastructure is provided by the Oceanpayment integrated solution that is designed to provide a seamless Konbini solution to local vendors and merchants.