Whereas it definitely appears that many shoppers in Japan have gotten extra comfy with transacting this manner, there’s lots of room for development. In keeping with the identical Line Analysis ballot, the variety of respondents who reported utilizing cash at bodily shops decreased by practically 10 share factors in 2019 from 2018, however a large 62% of respondents stated they nonetheless used this cost methodology as of December 2019.
The Japanese authorities has taken steps to encourage shoppers to make use of cell funds—like its cashless rebate program, which it rolled out final yr. “The rewards program was launched to offset the impact of the consumption tax hike in October 2019,” stated Cindy Liu, eMarketer senior forecasting analyst at Insider Intelligence. “Under the program, consumers who used cashless payments at specified outlets could receive cash back or reward points worth up to 5% of the value of those transactions.”
QR code cost programs, together with PayPay and Line Pay, are additionally driving development.
“Japan is betting big on QR codes as consumer payment preferences begin to change,” Liu stated. “QR codes don’t require huge investments from vendors, and it is also simple and easy to use for consumers.”
This yr was speculated to be Japan’s huge cashless push, with the Summer season Olympics and its partnership with Visa aimed toward bolstering cell cost adoption in Tokyo and the remainder of the nation. Because of the pandemic, nevertheless, the video games have been postponed to 2021.
“COVID-19 has accelerated the push toward cashless payments as consumers avoid the use of cash and plastic cards,” Liu stated. “And with the Olympics pushed back to 2021, we can expect the Japanese government to continue to invest in mobile payment technology as part of its measures to keep the games safe.”