The Development of and the Prospects for Retailer‐issued Credit Cards in Japan

Japan has a large number of credit cards on issue and many of these are issued by Japanese retailers. Two such retailers, Saison and Daiei,illustrate why and by what means Japanese retailers have entered the credit card market. This provides the backdrop to an explanation of how those major retail groups are now seeking to redefine the payment system supply chain to their own advantage. Makes reference to the worldwide competition between Visa and Master Card and how in Japan retailers have been able to play one card association off against the others. Also highlights the value of the information flows from the cardholder to the retailer and vice versa and draws attention to the potential of the retailer credit card in customer retention, recruitment and relationship building.