Note: This article covers cashless payment terminals and services specific to the Japanese market (such as Square Japan, Airペイ, stera pack, and Smaregi/PAYGATE), along with statistics from Japan's Ministry of Economy, Trade and Industry (METI). This will be most relevant if you operate a physical store in Japan.
Many store operators struggle with "I want to introduce a cashless payment terminal, but I don't know which service to choose." Since the 2020s, the share of cashless payments has grown rapidly, and Japan's Ministry of Economy, Trade and Industry (METI) has set a goal of reaching a cashless payment ratio of around 65% by 2030.
The cashless payment ratio for 2025 also rose steadily to 58.0%, and physical stores are increasingly expected to support a variety of payment methods.
Source: Ministry of Economy, Trade and Industry
This article gives operators of physical stores a clear explanation of cashless payment terminal features, benefits, setup costs, and how to choose one. We also introduce recommended models such as Square, Air Pay, stera pack, and Smaregi/PAYGATE, so if you want to choose the cashless payment terminal that's right for your store, please use this as a reference.
What Is a Cashless Payment Terminal?
A cashless payment terminal is a device that connects to a payment system to process payments other than cash. It supports a variety of payment methods, including credit cards, e-money, and QR code payments.
By using cashless payments, customers gain more freedom in how they choose to pay, and stores can process transactions more efficiently.
Main Types of Cashless Payment
| Type | Payment Method | Characteristics |
|---|---|---|
| Credit card | Various processing methods, including magnetic stripe, IC chip, and contactless | Also suitable for payment of high-value items |
| QR code | Mainly reads QR codes generated on a smartphone | Increasingly adopted by stores catering to inbound tourist demand |
| E-money | Contactless payment via transit IC cards or retail e-money | ・Fast, contactless payment ・Also suited to small, everyday purchases |
Types of Cashless Payment Terminals: Countertop vs. Mobile
Cashless payment terminals fall broadly into two categories:
- Countertop
- Mobile
Each has different characteristics, so it's important to choose a terminal that matches your store's sales situation.
| Type | Characteristics | Advantages | Disadvantages |
|---|---|---|---|
| Countertop | ・Installed at the store ・Often connected via a wired cable |
・No risk of running out of battery, since it stays plugged in ・Stable for customers to operate |
・The terminal is large and wired, so it needs installation space |
| Mobile | ・Small, palm-sized ・Portable |
・Can be used both inside and outside the store, such as at events or mobile sales | ・Battery-powered, so it can run out of charge |
Which Is Better: A Multi-Payment Terminal or a Dedicated Terminal?
All-in-one type
Handles all payment methods — credit cards, e-money, QR code payments — on a single device. It can meet a wide range of customer payment needs on one device, but the terminal itself can be expensive, which may raise initial setup costs.
Dedicated terminal
A terminal specialized for a specific payment method, such as QR codes only. Setup costs are lower, but since the supported payment methods are limited, you may end up needing multiple payment terminals.
Costs Involved with Cashless Payment Terminals
Introducing a cashless payment terminal involves both setup costs and ongoing operating costs. Compare the costs involved in advance and aim for efficient operations.
Payment Processing Fees
A fee charged on each transaction, which varies by card company and payment service.
Payment processing fees directly affect your sales results. Since this cost is incurred every time the terminal is used, it's the most important point of comparison.
Setup Costs
Mainly the cost of purchasing the terminal itself. There may also be costs for preparing the installation environment, such as arranging a power cable.
Monthly Fees
Some payment services charge a monthly fee for using the terminal, covering things like customer support and maintenance.
Tips for Keeping Setup Costs Down
To keep costs down, we recommend comparing multiple payment services. Choosing a terminal without unnecessary or excessive features also helps reduce costs.
In addition, many payment services run promotional campaigns for initial setup, so research these in advance and consider the timing of your terminal's introduction.
Check the Security of the Payment Terminal
It's also important to check user reviews and case studies to confirm whether the service is stable and reliable.
5 Recommended Cashless Terminals for 2026
Square Terminal
Image source: Square
The Square Terminal has a relatively high setup cost of around 30,000 yen, but there's no monthly fee, and the payment processing fee is an industry-standard 3.25%, making it easy to run long term.
It's an all-in-one, compact, and portable device that supports all major cashless payment methods on a single unit.
Air Pay
Image source: Air Pay
Air Pay is a payment service dedicated to the Japanese market. It supports a wide range of payment methods, including credit cards, e-money, and QR code payments. Thanks to ongoing free campaigns, the terminal itself is often free of charge, and there's no monthly fee. The payment processing fee starts from 3.24%.
With almost no setup cost, you can introduce cashless payments easily. Support from operator Recruit is also robust.
However, using Air Pay requires an iPad or iPhone, and some features may be more limited than with a dedicated terminal.
stera pack
Image source: stera
Stera is a service provided by the SMBC Group. Thanks to its trusted security and stable support system, it has a track record with large stores such as nationwide supermarket chains. The payment terminal is all-in-one, supporting credit cards, e-money, QR codes, and other payment methods.
The monthly usage fee varies by store size, and tends to be higher than competitors, so it may be more than a small store needs.
Smaregi / PAYGATE
Image source: Smaregi / PAYGATE
Smaregi/PAYGATE integrates with a cloud-based POS system for inventory management and sales analysis. Its strength is streamlining operations across the whole system through this POS integration.
Since the setup cost is only the terminal fee with no monthly charge, it's easy to introduce, but the terminal and system do require initial configuration, and it may take some time to get used to operating it.
Square Reader
Image source: Square Reader
The Square Reader is a mobile payment terminal. Lightweight and sleek, it's easy to carry and connects to a smartphone via Bluetooth. With low setup and running costs, it's a great fit for sole proprietors and small stores. It's ideal for accepting cashless payments outside the store, such as at events or pop-ups.
Because its features are limited, it's not well suited to large stores or complex operations. Also, since the connection is via Bluetooth, it can sometimes lack stability.
Let's Introduce Cashless Payments
As the cashless payment ratio continues to rise steadily, introducing a cashless payment terminal is an important step for physical stores to meet customer needs. It not only expands payment options for customers, but also helps streamline accounting and simplify sales management.
That said, supported payment methods, setup costs, monthly fees, payment processing fees, POS integration, and support systems all vary by terminal. A low-cost, easy-to-use terminal suits small stores or event sales, while a more feature-rich terminal suits stores that prioritize POS integration and sales analysis. Choose the cashless payment terminal that matches your store's size and operating style, and build a smooth payment environment.
