Complete Guide to Japanese E-Commerce Payments: Is Shopify Payments Enough?

“Shopify Payments Only” Means Lost Sales

When launching a Shopify store, many merchants rely solely on Shopify Payments. However, in the Japanese market, this is a critical mistake.

Data-Proven Facts

Credit Card: 40%
Convenience Store Payment: 25%
Cash on Delivery: 15%
Deferred Payment (Paidy, etc.): 12%
Others: 8%

Source: Ministry of Economy, Trade and Industry “E-Commerce Market Survey” 2025

In other words, credit card only means losing 60% of potential customers.

5 Essential Japanese E-Commerce Payment Methods

1. Credit Card (Shopify Payments)

Pros:

• Immediate settlement, quick shipping
• Relatively low fees (3.25-3.4%)

Cons:

• Some customers avoid due to security concerns

Implementation:

// Enable Shopify Payments from admin panel
// Settings → Payments → Shopify Payments

2. Convenience Store Payment (Essential: ★★★★★)

Why Essential?

• 40% of young customers (18-25) choose convenience store payment
• Reach customers without credit cards or who prefer not to use them

Major Services:

Service	Fee	Supported Stores	Features
Paidy	3.5% + fixed	7-Eleven, Lawson, FamilyMart	Deferred payment available
GMO-PG	3-5%	All major chains	Established reliability
KOMOJU	3.85%	All major chains	Shopify plugin available

Implementation Example (KOMOJU):

// 1. Create KOMOJU account
// 2. Install "KOMOJU" from Shopify App Store
// 3. Configure API keys

// Display in Liquid template
{% if additional_checkout_buttons %}
  {{ content_for_additional_checkout_buttons }}
{% endif %}

3. Cash on Delivery (Essential for 40+ demographic)

Needs:

• 25% of customers 40+ prefer COD
• Particularly important for high-value items (¥50,000+)

Implementation:

• Available via Shopify standard features
• Settings → Shipping and delivery → Cash on Delivery

Fee Configuration:

{% raw %}
<!-- Variable COD fee based on cart value -->
{% if cart.total_price < 10000 %}
  COD Fee: ¥330
{% elsif cart.total_price < 30000 %}
  COD Fee: ¥440
{% else %}
  COD Fee: ¥660
{% endif %}
{% endraw %}

4. Deferred Payment (Paidy/NP Atobarai)

Rapidly Growing Payment Method:

• 200% increase in usage compared to 2023
• Meets “see product before payment” needs

Paidy vs NP Atobarai Comparison:

Feature	Paidy	NP Atobarai
Fee	3.5% + ¥150	5%
Credit Check	Auto (instant)	Stricter
Default Risk	Paidy assumes	NP assumes
Advantage	High CVR boost	Established trust

Implementation Notes:

// Fallback for Paidy approval failure
if (paidyCheckoutFailed) {
  // Auto-redirect to credit card
  redirectToCheckout('credit_card');
}

5. Carrier Billing (Youth-focused)

Target:

• Smartphone generation aged 18-22
• Declining usage with MVNO spread, but steady demand remains

Supported:

• docomo: d-payment
• au: au Easy Payment
• SoftBank: SoftBank Collective Payment

Payment Gateway Comparison

GMO Payment Gateway

Strengths:

• Japan’s largest, excellent reliability
• Supports all payment methods

Weaknesses:

• High setup/monthly fees (¥100,000 setup, ¥30,000+/month)
• Shopify integration requires custom development

Best For:

• Monthly revenue ¥5M+
• Already using GMO-PG in other systems

KOMOJU (Recommended)

Strengths:

• Easy setup via Shopify app
• Supports convenience store, Pay-easy, bank transfer
• No monthly fees

Weaknesses:

• Slightly higher transaction fees (3.85%)

Best For:

• Shopify beginners
• Speed-focused launches

Paidy

Strengths:

• Maximum CVR improvement (our data: +15%)
• Deferred payment “peace of mind” factor

Weaknesses:

• Higher fees than alternatives
• Deferred payment only (need separate methods)

Best For:

• Apparel, cosmetics requiring “try-before-buy” feel
• Women-focused e-commerce

Implementation Steps (Recommended Configuration)

Phase 1: Minimum (CVR 60-70%)

1. ✅ Shopify Payments (credit card)
2. ✅ KOMOJU (convenience store)

Phase 2: Standard (CVR 75-85%)

1. ✅ Shopify Payments
2. ✅ KOMOJU
3. ✅ Paidy (deferred payment)
4. ✅ Cash on Delivery

Phase 3: Complete (CVR 90%+)

1. All above
2. ✅ PayPay
3. ✅ LINE Pay
4. ✅ Rakuten Pay

Payment Fee Optimization Techniques

Volume Discount Negotiation

Negotiate once revenue stabilizes:

¥1M monthly: 3.85% → 3.6% negotiable
¥5M monthly: 3.85% → 3.2% negotiable
¥10M monthly: 3.85% → 2.9% negotiable

Security Code Optional (CVR Boost)

// Shopify Payments configuration
// Required vs Optional 3D Secure tradeoff
// CVR: Optional 3D Secure shows 5-8% higher
// Risk: 0.3% increase in chargeback rate

// Recommended: Optional under ¥50,000, required above
if (cart.total_price > 50000) {
  require3DSecure = true;
}

Summary: Payment Strategy Checklist

• Credit card (Shopify Payments) configured
• Convenience store payment (KOMOJU recommended)
• Targeting 40+ → COD essential
• Apparel/cosmetics → Consider Paidy
• Review payment fees quarterly

Sales-maximizing payment strategy varies by target demographic and product category. DEMETIO offers free payment configuration consultations.

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