This report does not constitute a rating action. Japan's cashless payment market is growing rapidly and diversifying, with credit cards at its core. Credit card transaction volume was approximately ¥112 trillion in 2025, increasing about 10% monthly on a year-over-year basis. Credit card receivables are a major underlying asset in Japanese asset-backed securities (ABS), typically featuring default traps, seller's interests, and revolving periods. Growing and varying transactions since the pandemic make credit cards a major asset for Japanese ABS, in the view of S&P Global Ratings. Consumer finance companies continue to originate credit card receivables-backed ABS in Japan, mirroring global issuance trends. Cash payment was long the mainstream in Japan. Credit card payments have spearheaded the rapid growth of the
