Japan's fintech landscape has undergone a remarkable transformation in recent years, with the emergence of several innovative and rapidly growing companies that are revolutionizing the way financial services are delivered to consumers and businesses alike. As the country continues its push towards a more cashless society, these fintech giants are at the forefront of driving digital adoption and providing cutting-edge solutions that cater to the evolving needs of the market. In todays article, we will go into the details of Japan's top 10 biggest fintech companies, exploring their market share, profit, revenue, number of employees, leadership, services, products, history, and future growth projections for 2025.
1. Rakuten
Rakuten, a Japanese e-commerce and internet conglomerate, has made significant strides in the fintech sector through its various subsidiaries and services. With a market valuation of over $1 billion, Rakuten is one of the largest fintech companies in Japan. The company offers a wide range of financial services, including banking, securities trading, credit cards, and insurance, all accessible through its user-friendly mobile app and website. Rakuten's success can be attributed to its ability to leverage its vast customer base and ecosystem of services to cross-sell and upsell financial products. As of 2024, Rakuten has over 1.5 million corporate clients and 15 million individual customers, generating an annual revenue of $8 billion and employing more than 10,000 people.
2. SoftBank-backed PayPay
PayPay, a mobile payment service backed by SoftBank, has quickly become one of the most popular fintech apps in Japan. With over 45 million registered users and a market share of 40% in the mobile payment sector, PayPay has revolutionized the way Japanese consumers make payments. The app offers a seamless and convenient payment experience, allowing users to make QR code-based payments at over 2 million merchant locations across Japan. PayPay's success can be attributed to its aggressive marketing campaigns, partnerships with major retailers, and the integration of its service into the popular messaging app LINE. As of 2024, PayPay has generated an annual revenue of $1.5 billion and employs over 1,000 people.
3. LINE Pay
LINE Pay, a mobile payment service operated by the popular messaging app LINE, is another major player in Japan's fintech landscape. With over 30 million registered users and a market share of 25% in the mobile payment sector, LINE Pay has become a go-to payment option for LINE's vast user base. The service offers a range of features, including peer-to-peer money transfers, bill payments, and in-store payments using QR codes. LINE Pay's success can be attributed to its integration with the LINE app, which allows users to seamlessly make payments without leaving the messaging platform. As of 2024, LINE Pay has generated an annual revenue of $1 billion and employs over 500 people.
4. KDDI's au Pay
au Pay, a mobile payment service operated by the telecommunications company KDDI, is another significant player in Japan's fintech market. With over 25 million registered users and a market share of 20% in the mobile payment sector, au Pay has become a popular payment option among KDDI's vast customer base. The service offers a range of features, including in-store payments using QR codes, online payments, and loyalty rewards. au Pay's success can be attributed to its integration with KDDI's telecommunications services and its ability to offer competitive rewards and discounts to users. As of 2024, au Pay has generated an annual revenue of $800 million and employs over 300 people.
d Payment, a mobile payment service operated by the telecommunications company NTT Docomo, is another significant player in Japan's fintech market. With over 20 million registered users and a market share of 15% in the mobile payment sector, d Payment has become a popular payment option among NTT Docomo's vast customer base. The service offers a range of features, including in-store payments using QR codes, online payments, and loyalty rewards. d Payment's success can be attributed to its integration with NTT Docomo's telecommunications services and its ability to offer competitive rewards and discounts to users. As of 2024, d Payment has generated an annual revenue of $600 million and employs over 200 people.
Top Japanese Fintech Companies Annual Revenue (2024)
6. Mizuho Bank
Mizuho Bank, one of Japan's largest commercial banks, has made significant investments in fintech to enhance its digital offerings and stay competitive in the rapidly evolving financial landscape. The bank has launched several innovative fintech initiatives, including a digital-only bank called Mizuho Wallet, which offers a range of banking services through a user-friendly mobile app. Mizuho Bank has also partnered with several fintech startups to develop new products and services, such as a blockchain-based trade finance platform. As of 2024, Mizuho Bank has over 30 million customers, generates an annual revenue of $15 billion, and employs over 15,000 people.
7. MUFG Bank
MUFG Bank, another one of Japan's largest commercial banks, has also embraced fintech to drive innovation and improve customer experience. The bank has launched several digital initiatives, including a mobile banking app called MUFG Direct, which offers a range of banking services and features such as facial recognition login and real-time account monitoring. MUFG Bank has also invested in several fintech startups and has partnered with tech giants like IBM to develop blockchain-based solutions for trade finance and cross-border payments. As of 2024, MUFG Bank has over 35 million customers, generates an annual revenue of $20 billion, and employs over 20,000 people.
8. SBI Holdings
SBI Holdings, a financial services group, has been at the forefront of Japan's fintech revolution. The company has invested in several fintech startups and has also launched its own fintech initiatives, such as SBI Sumishin Net Bank, a digital-only bank that offers a range of banking services through a user-friendly mobile app. SBI Holdings has also been a pioneer in the cryptocurrency space, launching its own cryptocurrency exchange called SBI Virtual Currencies. As of 2024, SBI Holdings has over 10 million customers, generates an annual revenue of $5 billion, and employs over 5,000 people.
9. GMO Internet
GMO Internet, an internet services provider, has also made significant strides in the fintech sector. The company has launched several fintech initiatives, including GMO Coin, a cryptocurrency exchange that offers trading in various digital currencies, and GMO Payment Gateway, a payment processing service that enables merchants to accept online payments. GMO Internet has also invested in several fintech startups and has partnered with major retailers to offer its payment services. As of 2024, GMO Internet has over 5 million customers, generates an annual revenue of $2 billion, and employs over 2,000 people.
10. Monex Group
Monex Group, a financial services company, has been a key player in Japan's fintech market. The company operates several online securities trading platforms, including TradeStation, a popular platform among active traders and investors. Monex Group has also launched several fintech initiatives, such as Monex Cryptocurrency Exchange, which offers trading in various digital currencies. The company has also invested in several fintech startups and has partnered with major financial institutions to develop new products and services. As of 2024, Monex Group has over 1 million customers, generates an annual revenue of $1 billion, and employs over 1,000 people.
Future Growth Projections for 2025
Japan's fintech market is poised for continued growth in the coming years, with experts projecting a compound annual growth rate (CAGR) of nearly 70% from 2017 to 2022. By 2025, the market is expected to reach a value of $15.8 billion, up from $10 billion in 2024. This growth will be driven by several factors, including the government's push for a cashless society, the increasing adoption of mobile payments and digital banking services, and the continued investment in fintech startups by major corporations and venture capitalists.
One of the key trends that will shape Japan's fintech market in the coming years is the rise of digital-only banks and challenger banks. These banks, which operate entirely online without physical branches, are expected to gain significant market share as consumers become more comfortable with digital banking services. Several major banks, such as Mizuho Bank and MUFG Bank, have already launched their own digital-only banking services, and more are expected to follow suit in the coming years.
Another trend that will shape Japan's fintech market is the increasing use of artificial intelligence (AI) and machine learning in financial services. These technologies are expected to be used for a wide range of applications, such as fraud detection, credit scoring, and personalized financial advice. Several fintech companies, such as SBI Holdings and GMO Internet, have already begun to incorporate AI and machine learning into their products and services, and more are expected to follow suit in the coming years.
Finally, the growth of the cryptocurrency and blockchain space is expected to be a key driver of Japan's fintech market in the coming years. Japan has already emerged as a global leader in cryptocurrency adoption, with several major exchanges operating in the country. The government has also been supportive of the development of blockchain technology, with several initiatives aimed at promoting its use in various industries, including finance. As the adoption of cryptocurrencies and blockchain continues to grow, more fintech companies are expected to enter this space and develop new products and services.
In conclusion, Japan's fintech market is poised for significant growth in the coming years, driven by the government's push for a cashless society, the increasing adoption of digital banking services, and the continued investment in fintech startups by major corporations and venture capitalists. The rise of digital-only banks, the increasing use of AI and machine learning in financial services, and the growth of the cryptocurrency and blockchain space are all expected to be key trends that will shape the market in the coming years. As Japan's fintech giants continue to innovate and expand their offerings, the country's financial landscape is sure to undergo a dramatic transformation in the years ahead.