Half of Japan’s local banks to join hands in cashless payment

Half of Japan’s local banks to join hands in cashless payment
Cashless transaction

Regarding half of around 100 local banks in Japan will initiate a new cashless payment system developed by Mizuho Financial Group Inc starting in late March.

The Plan by over 50 banks to join the Tokyo-based bank’s J-coin schemes comes at a time the Japanese government is close to use of cashless payments as the  2020 Tokyo Olympics and Paralympics approach, aiming to double digital payments to 40% of all communications by 2025.

J-Coin transactions will be prepared through a smart phone  app using one “Quick Response” two structure  barcode, a telephone number or Line Corp direct messaging app personal number for detection.

Unlike prepaid smart cards which are currently more popular in Japan, the J-coin service allows communication between individuals and does not require devoted readers at retailers.

While advertising of the service to visitors from abroad would depend on whether Mizuho can join hands with major providers of cashless payment services such as china’s Alipay, J-coin could be an attractive option for rapidly increasing distant visitors as cash continues to be the most- used form of payment by consumers in the country.

The new service will originally be offered to individuals holding accounts at local banks such as Chiba Bank and Nishi-Nippon city Bank, according to the sources. Mizuho Bank will launch the service on March 1, with local banks following suit from March 25, they said.

Japanese home appliance retailers such as Bic Camera Inc and Yamada Denki Co will start adopting the J-Coin system in April, with other firms like East Japan Railway Co, convenience store chain familyMart Co and restaurant operator Royal Holding Co considering joining them.

Looking forward to accelerate the use of cashless payments and help cushion an expected impact of an upcoming tax hike, the government will give consumers using cashless methods rebates of 2% of the purchase price at convenience stores, or 5 % at other small or medium-sized stores, for 9 months after the consumption.

Leave a Reply

Your email address will not be published. Required fields are marked *