Note: This article covers convenience store payment (konbini payment), a payment method specific to merchants and customers in Japan. The information below will not be directly relevant if you are not selling in the Japanese market.
When running an online store on Shopify, offering a variety of payment methods is an important factor in boosting customer satisfaction and increasing sales. Among these, convenience store payment is one payment method that is widely accepted by Japanese consumers. This article explains in detail the benefits and drawbacks of adding convenience store payment to Shopify, the specific setup steps, and related topics.
What Is Convenience Store Payment?
Convenience store payment lets customers pay in cash for goods purchased at an EC store at convenience stores nationwide, such as 7-Eleven or Lawson.
It is commonly used by younger customers who don't hold a credit card, or by those who prefer not to use credit card payment online.
Benefits of Adding Convenience Store Payment to Shopify
Helps Reduce Cart Abandonment
The most common reason for cart abandonment is "the desired payment method isn't available." To prevent cart abandonment among customers who don't hold a credit card or who prefer not to use one, it's a good idea to add convenience store payment.
Source: Reiwa 5 Communications Usage Trend Survey Report (Household Edition) | Ministry of Internal Affairs and Communications
According to the Ministry of Internal Affairs and Communications' "Reiwa 5 Communications Usage Trend Survey Report (Household Edition)," among "payment methods used when purchasing online," convenience store payment is the third most used, after credit card payment and e-money. If you're looking to expand your payment options, convenience store payment is worth considering.
The article below introduces other measures for reducing cart abandonment on Shopify besides "expanding payment methods." Please use it as a reference.
Acquiring Younger Customers Who Can't Hold a Credit Card
Credit card payment is one of the main payment methods for EC sites, but many credit card companies set the minimum age for issuing a card at 18 to 20 years old or older. As a result, stores that only accept credit card payment are usually unable to sell to minors, but adding convenience store payment resolves this issue.
Acquiring Customers Who Prefer Not to Use a Credit Card
Many adults also feel reluctant to use credit card payment. Adding convenience store payment benefits both the store and customers who wish to avoid credit card payment, allowing them to still make purchases at the store.
Drawbacks of Adding Convenience Store Payment to Shopify
Increased Costs
Using convenience store payment may require a monthly fee, or increase payment processing fees (such as processing fees or refund fees). In addition, convenience store payment is a payment method other than Shopify Payments, so a transaction fee will also apply.
Since high fees reduce the store's profits, choose a provider with lower fees if you want to minimize costs.
What is a transaction fee?
A transaction fee is a fee charged when receiving payment from a customer.
The transaction fee is waived when using Shopify Payments, but the following fees apply when using any other external payment provider.
| Shopify Plan Name | Starter | Basic | Grow | Advanced | Plus |
|---|---|---|---|---|---|
| Transaction fee | 5.00% | 2.00% | 1.00% | 0.60% | 0.20% |
Customers Also Bear a Fee
With convenience store payment, customers often bear a fee as well. In some rare cases, the customer only notices the fee after placing the order, leading to order cancellations or missed payment deadlines.
Customers May Miss the Payment Deadline
Some customers may fail to meet the payment deadline. Compared with payment methods like credit cards, where payment is completed at the time of ordering, convenience store payment carries a higher likelihood of order cancellation due to a missed payment deadline.
Customers Must Travel to a Convenience Store
With convenience store payment, customers need to make a trip to a convenience store to pay. This isn't much of a drawback in urban areas with many convenience stores, but in rural areas with fewer stores, some customers may live far from the nearest one, and some locations may not support convenience store payment at all.
Payments Over 300,000 Yen Are Not Possible
Convenience stores themselves have a restriction that prevents in-store payments exceeding 300,000 yen. As a result, the upper limit per transaction is under 299,999 yen. Stores handling high-priced items need to keep this in mind.
How to Add Convenience Store Payment to Shopify
To add convenience store payment to Shopify, you need to set up one of the following payment providers.
KOMOJU
KOMOJU is notable for having no initial or monthly fees, and for fast screening.
The blog article below introduces KOMOJU in detail. Please use it as a reference.
Convenience Store Payment Costs
| Initial cost | Monthly fee | Payment processing fee | Customer-borne fee | Refund fee |
|---|---|---|---|---|
| 0 yen | 0 yen | 2.75% | 190 yen | 300 yen |
Supported Convenience Store Chains
- 7-Eleven
- Lawson
- FamilyMart
- Daily Yamazaki
- MINISTOP
- Seicomart
※7-Eleven requires a separate screening process
GMO Epsilon
GMO Epsilon is a payment service provider that lets you add a wide range of payment methods at once, including credit card, convenience store, and online bank payments. There are no initial fees or transaction processing fees, and it has been adopted by more than 42,000 companies to date.
Beyond payment services, it also offers a variety of its own services, such as shipping and financing.
The blog article below introduces GMO Epsilon in detail. Please use it as a reference.
Convenience Store Payment Costs
| Corporate | Individual | |||
|---|---|---|---|---|
| Payment amount / fee (excl. tax) |
Up to 1,999 yen | 130 yen/transaction | Up to 1,999 yen | 130 yen/transaction |
| 2,000–2,999 yen | 150 yen/transaction | 2,000–2,999 yen | 150 yen/transaction | |
| 3,000–4,999 yen | 180 yen/transaction | 3,000–4,999 yen | 180 yen/transaction | |
| 5,000 yen and up | 4%/transaction | 5,000 yen and up | 4%/transaction | |
|
Minimum monthly fee Note 1 (excl. tax) |
- | 1,000 yen | -Note 2 | |
(Note 1) Each month, the minimum monthly fee is compared with the payment processing fee, and whichever is higher applies and must be paid to Epsilon.
(Note 2) The minimum monthly fee is included in the VISA/MASTER/DINERS credit card payment fee.
Supported Convenience Store Chains
- 7-Eleven
- FamilyMart
- Lawson
- Seicomart
- MINISTOP
※ A screening process applies. Any convenience store chain that fails the screening cannot be used.
SB Payment Service
SB Payment Service is a payment service provider operated by SB Payment Service Corporation, a member of the SoftBank Group. In addition to offering a wide range of payment methods, it is known for marketing support aimed at boosting sales and a robust security setup.
The blog article below explains SB Payment Service in detail. Please use it as a reference.
Convenience Store Payment Costs
| Initial cost | Monthly fee | Payment processing fee |
Payment service usage rate |
Transaction fee |
|---|---|---|---|---|
| 3,000 yen | 1,000 yen | 1.80% | Not required | 100 yen |
Supported Convenience Store Chains
- 7-Eleven
- FamilyMart
- Lawson
- Seicomart
- MINISTOP
Paidy
Paidy is a later-payment service also used by Amazon, Qoo10, and other major sites.
Customers can choose convenience store payment as their payment method when using this later-payment service.
The article below introduces the benefits and drawbacks of adding BNPL (later payment) to Shopify, as well as various BNPL services. Please use it as a reference.
Convenience Store Payment Costs
| Initial cost | Monthly fee | Payment processing fee |
|---|---|---|
| Free | Free | Convenience store payment: 356 yen (max per transaction, tax included) |
Supported Convenience Store Chains
- 7-Eleven
- Lawson
- Seicomart
- MINISTOP
Frequently Asked Questions About Convenience Store Payment
Types of Convenience Store Payment
Payment Number Type
The payment number type displays the various numbers needed for payment on the EC store's site when the customer completes checkout.
The customer can pay either by telling the cashier this number directly at the convenience store register, or by entering the number into a dedicated terminal at the convenience store to issue a payment slip, which they then present at the register to pay.
This method has the benefit of not requiring the EC store to prepare a payment slip, reducing operational load, but customers need to operate the convenience store's dedicated terminal, which can be a bit of a hassle for those unfamiliar with such devices.
Payment Slip Type
With the payment slip type, after purchasing on the EC store, a payment slip is sent to the customer, who presents it at the convenience store register to pay for the product.
The EC store must send the customer a payment slip listing a barcode, the product amount, and the payment deadline, which is a drawback in terms of the effort of printing and mailing the slip, but it has the benefit of being easy for customers of any generation to pay with.
A Shopify App That Can Automatically Hide Convenience Store Payment
After adding convenience store payment, you may run into situations where you want to hide it — for example, "I want to hide convenience store payment for high-priced items," or "I want to hide convenience store payment when a preferred delivery date has been set."
This section introduces a Shopify app that can hide convenience store payment under any condition you like.
RuffRuff Order Limits
"RuffRuff Order Limits" is fully localized for Japanese and is Japan's first Shopify app built on the Cart and Checkout Validation API.
By using the "Cart and Checkout Validation API," it achieves order-limit processing on the server side, something that could previously only be handled on the front end. As a result, compared with existing order-limit apps, it delivers far more robust order restrictions that are harder to bypass.
With a single app, you can implement quantity limits, amount limits, bundling restrictions, customer restrictions, and payment-method hiding.
Using this app, you can achieve things like the following.
・Hide convenience store payment once the cart total reaches ¥3,000 or more
・Hide convenience store payment when the cart contains a pre-order item
・Hide convenience store payment for guest customers only
The blog article below explains how to use RuffRuff Order Limits to automatically hide convenience store payment when the subtotal reaches 300,000 yen or more. Please use it as a reference.
In Closing
Adding convenience store payment to Shopify brings many benefits, such as broadening your customer base and reducing cart abandonment. On the other hand, there are also drawbacks to consider, such as increased costs and the risk of missed payment deadlines.
When considering adding it, be sure to carefully weigh your business model, customer base, and product characteristics in order to choose the payment provider best suited to you. Also, if you want to hide convenience store payment for high-priced items or under certain conditions, an app like RuffRuff Order Limits can provide flexible control.
Adding convenience store payment can be an effective strategy for boosting competitiveness in the Japanese EC market. We hope the information in this article helps you choose the best payment methods for your Shopify store, leading to greater customer satisfaction and sales.
Shopify also supports a wide variety of other payment methods. The blog article below introduces other payment methods you can add to Shopify besides convenience store payment. If you're considering adding a new payment method, please use it as a reference.
