Amid the global wave of consumer finance digitalization, Buy Now Pay Later (BNPL) has rapidly emerged as one of the mainstream payment methods. In Europe and the U.S., brands such as Klarna, Affirm, and Afterpay have expanded across online and offline retail channels, demonstrating how BNPL has evolved from a small-ticket installment tool into a critical engine for driving conversion and user loyalty.
By comparison, Japan’s BNPL market started relatively later but shows significant growth potential. According to research by Yano Research Institute, the market reached JPY 400 billion by the end of 2023 and is projected to exceed JPY 1 trillion by 2027. This trend reflects the decline in credit card usage and rising demand among younger consumers for flexible payment options, signaling that BNPL is gradually becoming a new norm.
Why We Selected This Case
Although Buy Now Pay Later (BNPL) is growing rapidly worldwide and gaining momentum in Japan, the main challenge for 21st Fintech is not consumer education but securing trust and partnerships with local enterprises.
Given Japan’s strong focus on risk management, credibility, and process stability, Taiwan-based fintech firms need a strategic approach to enter the B2B market.
Using ADGo’s 01 Market Intelligence Sweep, 02 New Product Pre-Launch, and 06 Extreme Creative Brainstorm, we developed a data-driven plan to identify early partners, test enterprise readiness, and shape communication strategies. The objective is to build trust with minimal expansion cost and quickly integrate into Japan’s BNPL ecosystem.
Market and Strategic Insights
01Market Intelligence Sweep
Japan’s BNPL market is expanding rapidly—reaching ¥400 billion in 2024 and projected to surpass ¥1 trillion by 2027. While adoption is high among younger consumers, the mid-to-senior demographic still requires education and better UX. In B2B, despite large transaction volumes, digital payment penetration remains under 1%. Given the mutual dependency between consumer demand and business adoption, BNPL providers that integrate APIs, membership conversion, risk controls, and local trust-building have a strong opportunity to break entry barriers and create a sustainable two-way growth loop in Japan.
02New Product Pre-Launch→06Extreme Creative Brainstorm
While Japan’s enterprise sector handles vast transaction volumes, BNPL adoption remains slow—primarily due to heightened risk sensitivity and a cultural preference for process stability. In Stage Two of the New Product Pre-Launch, we developed two strategic messaging frameworks aimed at bridging this trust gap. The first focuses on alleviating concerns around payment security and commercial performance; the second adopts a “prescriptive” tone to address operational growth anxieties—both designed to accelerate BNPL’s enterprise integration in Japan.
Concept 1: “Installment Confidence, Sales Acceleration”
BNPL offers two key benefits: a seamless, secure payment experience for users and measurable revenue growth for merchants. “Installment Confidence” addresses safety and ease of use, while “Sales Acceleration” highlights immediate commercial impact. This clear, outcome-focused message resonates with both technical and business audiences.
Concept 2: “Break Through Your Growth Plateau—BNPL as Your Strategic Remedy”
Positioned as more than a payment option, BNPL becomes a remedy for common pain points—stagnant conversions, low order values, and declining reach. It blends UX, behavioral insights, and monetization strategy to unlock new growth. This reframes BNPL as a core part of business transformation, not just a checkout tool.
Building on the 02 New Product Pre-Launch framework, we then used 06 Extreme Creative Brainstorm to translate abstract concepts into tangible, experiential, and business-ready deliverables:
- Business Value Validation Campaign: #VisibleGrowth A 30-day BNPL co-creation program tailored for Japanese businesses, with clear KPIs (conversion rate, AOV, cart abandonment) monitored by AI. Final results are compiled into executive-level reports. Participating companies receive a certified “BNPL Impact Badge” to enhance credibility in future B2B outreach.
- Integrated Marketing Experience: #ExperienceBNPL A week-long BNPL experience week collaborates with brands in sectors like cosmetics, apparel, and electronics. Activities include interactive installations, discounts, and social media challenges on platforms like TikTok and Instagram, converting offline engagement into online buzz and user data.
- BNPL Business Implementation Exchange Conference A private BNPL onboarding event featuring partner brand case studies and live demonstrations of member conversion and payment flow. Post-session roundtable discussions enabled real-time commercial dialogue, accelerating business decision-making.
ADGo Execution Process
Through this comprehensive approach, ADGo has enabled 21st Fintech to effectively address concerns, demonstrate measurable outcomes, and initiate practical business discussions in Japan’s conservative yet promising market. By transforming BNPL into a solution characterized by visible results, manageable risks, and sustainable growth, ADGo has proven itself as an indispensable partner for fintech companies expanding into new markets.