Over 21% of Japan's population, 23.9 million people, will use their smartphone to make mobile payments at the point of sale by the end of this year, according to an eMarketer forecast report. This figure is up from 19.1 million in 2019.

The forecast also predicts that the figure will increase to 27.6 million people — 25% of the population — by 2023.

The reasons behind the growth includes the adoption of QR code payment systems and the Japanese government's cashless rebate program where consumers get rewards for making cashless payments with cash back or points worth up to 5% of their transaction.

"Japan is betting big on QR codes as consumer payment preferences begin to change," eMarketer analyst Cindy Liu said in the report. "QR codes don't require huge investments from vendors and it is also simple and easy to use for consumers."

With the Olympics pushed back to 2021 and the acceleration that COVID-19 has had on digital payments, Liu said to expect the Japanese government to continue to invest in mobile payment technology.