Will QR code payments become popular in Japan?
Posted: Mon Jan 20, 2025 10:22 am
One of the reasons behind the rapid spread of mobile payments in China is the underdevelopment of existing payment infrastructure, including credit.
In fact, when comparing the penetration rates of mobile payments, inland areas such as Tibet, Qinghai, and Gansu, where the development of existing infrastructure is lagging behind, appear to be outperforming major coastal cities such as Beijing and Shanghai.
Another reason seems to be that the largest denomination banknote is 100 yuan (about 1,630 yen), so bills are bulky when making payments. Indeed, if 5,000 and 10,000 yen bills were to disappear in Japan, your wallet would bulge and become a nuisance.
Another surprising reason is that, according to a Chinese engineer database acquaintance of mine, "banknotes are dirty." Some experts even recommend washing your hands after touching banknotes.
In Japan, there are many QR code and barcode payment services, such as LINE Pay, Rakuten Pay, and Origami. However, since NFC payments such as Suica, QuickPay, and ApplePay are more common for electronic money, and credit cards are also widely used, it may be difficult for QR code payments to become popular as quickly as they have in China.
However, there may be potential for it to be used as a local currency, similar to the electronic local currency "Sarubobo Coin" (tentative name) being promoted by Hida Shinkin Bank.
Premium gift certificates and local currencies that have been issued on paper up until now can be converted to QR code payment systems with relatively low system investment. In addition, by managing payment data electronically, it is possible to reduce management costs and effort. In the future, QR code payment may become a trend for local currencies.
In fact, when comparing the penetration rates of mobile payments, inland areas such as Tibet, Qinghai, and Gansu, where the development of existing infrastructure is lagging behind, appear to be outperforming major coastal cities such as Beijing and Shanghai.
Another reason seems to be that the largest denomination banknote is 100 yuan (about 1,630 yen), so bills are bulky when making payments. Indeed, if 5,000 and 10,000 yen bills were to disappear in Japan, your wallet would bulge and become a nuisance.
Another surprising reason is that, according to a Chinese engineer database acquaintance of mine, "banknotes are dirty." Some experts even recommend washing your hands after touching banknotes.
In Japan, there are many QR code and barcode payment services, such as LINE Pay, Rakuten Pay, and Origami. However, since NFC payments such as Suica, QuickPay, and ApplePay are more common for electronic money, and credit cards are also widely used, it may be difficult for QR code payments to become popular as quickly as they have in China.
However, there may be potential for it to be used as a local currency, similar to the electronic local currency "Sarubobo Coin" (tentative name) being promoted by Hida Shinkin Bank.
Premium gift certificates and local currencies that have been issued on paper up until now can be converted to QR code payment systems with relatively low system investment. In addition, by managing payment data electronically, it is possible to reduce management costs and effort. In the future, QR code payment may become a trend for local currencies.