The messaging, aimed at small business owners, is clear: some consumers, like the growing number of people who don’t carry much cash on them, will choose a restaurant, shop, or store based on whether or not they can use cards; your business is missing out on things. In order to keep an overview of the active & recent ideas in this forum, we will close this idea for now. While bank wire transfers, convenience store payment, and even cash on delivery (COD) are used more frequently than one might expect for online shopping, ecommerce has still played a significant role in furthering regular usage of credit cards among the Japanese. This is not even a full list and new services are constantly entering the market. When the man in the suit asks, in broken Japanese, if the bar accepts cards Odagiri replies, “We only accept cash.” The group immediately turns around and walks straight to the izakaya right next door which is more than happy to accommodate them. Preferred card schemes in Japan. Physical retailers, who face increasing pressure into accepting more non-cash payment options, would probably be best served with QR payments like those being offered by LINE and PayPay, due to the lower fees compared to traditional credit card processors. While the previously mentioned factors of ecommerce, smartphones, and tourism have helped to create an environment for non-cash alternatives to begin to be more widely used in Japan, cash is still king. When it comes to cards, non-liability statements in terms and agreements, can make this argument more flawed than card issuers would have you imagine. Over 40,000 convenience stores across Japan accept Konbini payments for online purchases. Furthermore, due to there being so many competing systems all vying for market share, QR code mobile payment apps are not universally accepted. Finally, to claim that cashless payments are inherently safer is also debatable. This message does not really resonate with the reality most Japanese people know—a society where one can carry large amounts of cash without worry of theft—thus the commercial missed its mark there as well. While bank wire transfers, convenience store payment, and even cash on delivery (COD) are used more frequently than one might expect for online shopping, ecommerce has still played a significant role in furthering regular usage of credit cards among the Japanese. Especially in the case of convenience stores and cafes, two of the places where eMoney is currently used the most, QR codes are actually less convenient and slower than the FeliCa (NFC) technology found in Suica or other transit smart cards. Looking for deeper insights into your particular industry in Japan? Easy! After cash, bank wire transfer is often the preferred method for many Japanese businesses, as the fees to make such a transfer are borne by the customer or the person making the payment. Japan’s three major convenience store chains, Seven-Eleven, FamilyMart, and Lawson, have some 50,000 stores in all nationwide. Convenience Store Payment ▼ Convenience Store Payment It is a payment method that enables shoppers to make payments through convenience stores, with a payment number received after finishing an order on your website. Use Convenience Store Cashing In addition to selling food products and daily necessities, convenience stores offer a wide range of services that make them irreplaceable in the daily lives of the locals. 0120-999-373, 011-330-3000, 011-330-3003, and 022-745-6366 are currently not available. And it didn’t stop at ATMs, an increasing number of retail stores began accepting credit cards as well. When something as basic and frequent as bills are paid by non-cash options, it has the potential to make people consider not paying by cash for other things as well. Recently both services have taken an aggressive approach to gaining new users through high-profile campaigns. Your idea has been submitted a while ago but unfortunately hasn't gathered enough kudos (50 per year). Yet despite the growing array of cashless payment options, compared to neighboring countries, such as South Korea, which boasts a cashless payment usage rate of nearly 90%, and China, a rate of 60%, Japan’s cashless payment usage rate stands out at only 20%. It is no longer the case that Japanese people tell those visiting from abroad that they need to bring or exchange cash to Japan, since there is now no shortage of ATMs which can accept non-Japanese cards. Easy payment - online payment service used on Yahoo! Although these two mobile payment services—along with current number one, Rakuten Pay— are leading the pack, they do not command a convincing lead and QR code payments are still far from mainstream. Let’s take a look at the mobile payment landscape in Japan and the key players that are changing Japan’s obsolete mobile payment system. This means that offering cash payments at convenience stores as a payment method will help you widen your reach in the local market. Pay-easy is an online payment method that allows shoppers to pay for their purchase from their online bank account. WiFi — Connect to the store’s … JCB holds a 40% market share in the Japanese credit card industry with no less than 56 million JCB cards in circulation. Pay at convenience stores (in Japan) You may pay for domestic flight tickets booked through the JAL website or JAL call center (Domestic Reservation and Information) at convenience stores in Japan. As mentioned in the beginning of this article, cashless payments encompass not only newer mobile payment apps utilizing QR codes, but also the more familiar cashless options: plastic credit and debit cards. In fact the fragmented market makes it difficult for users and merchants alike to adopt these newer cashless payment methods. See More. In addition to Visa/MasterCard support, 2Checkout offers support for JCB, Konbini, and Pay-easy payments. However, whether or not QR is here to stay in Japan is up for debate given Japan’s pre-existing infrastructure that makes the value proposition of QR code payments less practical. The payment is limited to 300,000yen when you make a payment at convenience stores. Although mobile payment apps are used more frequently than debit cards, their usage is still dwarfed by cash, credit, and eMoney/transit smart cards. In other words, our hands are being forced to move towards cashless payments. While transit smart cards such as JR East’s Suica are widely used by those living in the heavily populated Kanto region of Japan, of which Tokyo is a part of, in areas outside of Japan’s major cities and metropolitan areas they are far less relevant to consumers. Let’s take a closer look at how available cashless payment really is in Japan. Despite the recent activity in the cashless payment space, it is unlikely that Japan will ditch cash any time soon. But even when it comes to credit cards, while online shopping definitely has helped noticeably increase their usage, a multitude of payment options for online shopping are still accepted in Japan. The company I work for is currently using Digital River to render a separate Japanese shopping cart on our e-commerce site. Usage Guidelines. Picture from Get The Japanese Yen You Need! While there are various occasions and settings where people might Read more…, One of the major changes in Japan brought about by the coronavirus pandemic has been the number of Japanese companies instituting work from home (WFH) policies and allowing telework or remote work. Paper bills, whether it be utilities, credit card statements, or any number of possibilities, can be used to pay at convenience stores, banks, post offices, etc. And 75% of the population have purchased products online. The final factor we attribute to the growth of cashless payments in Japan is the rise in inbound tourism. Rather, a number of laws combine to form the legal basis for payment and securities settlement. However, a planned increase in Japan’s consumption tax, from 8% to 10% this coming October, may provide a reason to those who don’t currently use cashless payments to reconsider their relation to cash. The tourism boom we are currently experiencing in Japan began in earnest in 2012. 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