Tokyo – Japanese households used credit cards for more purchases than cash in 2025, marking a first for the nation, according to data released February 20, 2026. The shift, driven in part by the growth of e-commerce, still lags behind the widespread adoption of cashless payments seen in South Korea and China.
The change reflects a gradual move away from Japan’s traditionally cash-based society, particularly for expenses like transportation and entertainment. While credit card usage has been increasing, the overall share of cashless transactions remains comparatively low when measured against other major economies.
The trend coincides with a broader geopolitical realignment in East Asia, where Japan and South Korea are increasingly seeking to strengthen ties amid escalating global uncertainty and a more assertive China. In March 2025, top diplomats from Japan, China, and South Korea met in Tokyo to discuss regional security and economic issues, signaling a search for common ground.
South Korea has become a focal point in the evolving dynamic between China and Japan, with both countries actively courting Seoul. Japanese Prime Minister Sanae Takaichi met with South Korean President Lee Jae-Myung in Nara in early 2026, emphasizing the importance of cooperation in a complex international landscape. This followed a visit by President Lee to Beijing, where he met with Chinese President Xi Jinping and led a 400-member business delegation.
The strengthening of ties between Japan and South Korea is, in part, a response to China’s growing influence in the region. A foreignaffairs.com analysis from December 2025 noted that Japan and South Korea were emerging from a period of strained relations stemming from historical grievances related to Japan’s colonial legacy in Korea, allowing for renewed cooperation in areas like security and trade. The May 2024 meeting between the leaders of China, Japan, and South Korea was viewed as a sign of easing tensions, though underlying issues remain.
Despite the increased use of credit cards, Japan’s reward point systems have not yet reached the sophistication of those in South Korea. This disparity may contribute to the slower overall adoption of cashless payments compared to its regional neighbors.
The China-Japan-South Korea trilateral summit, first held in 2008, continues to serve as a key forum for discussing regional economic cooperation and disaster relief. The summits were initially proposed by South Korea as a separate platform for dialogue outside of the ASEAN Plus Three framework.
As of February 2026, no further trilateral summits have been scheduled, and the diplomatic implications of the shifting relationships between the three nations remain unresolved.
