In a significant move, Mizuho bank and Rakuten have increased their credit card payback rate to 2%. This strategic decision aims to attract more customers to their co-branded cards and strengthen their position in the competitive Japanese financial sector. While the exact timeline of this change is not specified in the headline, it's a current event that's causing ripples across Japan.

In Japan, credit card companies typically offer a payback rate of 1%-1.5%. An increase to 2% is considered significant and could spark a rate war among competitors. Cashback is an important selling point for credit cards in Japan, as consumers are increasingly looking for ways to make their purchases more cost-effective.

In the US, cashback rates on credit cards vary widely, from 1-5% depending on the card and the type of purchase. Similarly in EU, cashback and other reward programs form a key part of their customer attraction strategy. The initiative by Mizuho and Rakuten shows Japan's growing alignment with global practices in terms of credit card rewards.