business

Japanese firms to promote common infrastructure for cashless payments

18 Comments

More than 30 major companies in Japan will launch verification tests on a possible private digital currency from fiscal 2021 starting next April, a group aimed at promoting common infrastructure for interoperable cashless payment services said.

The lack of interoperability between different cashless payment applications remains a hurdle both for consumers and retailers, as customers cannot use the payment app on their smartphone if a shop does not have a terminal that accepts it.

In June, Japan's three megabanks -- MUFG Bank, Sumitomo Mitsui Banking Corp and Mizuho Bank -- and railway operator East Japan Railway Co, the issuer of smart card Suica, jointly set up the group to explore possible interoperable infrastructure for cashless payments and digital currency.

Last week, the consortium released a report proposing a common digital currency with an interoperable structure to allow different cashless payment service providers to use it while maintaining their original payment services.

"We would like to facilitate a wide range of settlement services," Hiromi Yamaoka, a former senior Bank of Japan official who serves as chairman of the consortium, said at an online press conference.

The consortium said it will develop into the "Digital Currency Forum" next month, joined by new members such as retailer Aeon Co, Kyocera Corp and Kansai Electric Power Co.

The BOJ, the Financial Services Agency, the Ministry of Economy, Trade and Industry, the Finance Ministry and the Ministry of Internal Affairs and Communications remain as observers, the consortium said.

The central bank said last month it will start a feasibility study on a digital currency of its own in fiscal 2021.

The bank said that so far it has no plan to issue digital currency, but will be collaborating with other central banks and fintech firms in the study.

© KYODO

©2020 GPlusMedia Inc.

18 Comments
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So let me get this.... Someone or someone's though that the only way out of having 500 different payment ways and an NFC system compatible only in Japan is to create a new payment method that probably will take years to integrate and even more time to adopt...???

Wow that's clever

11 ( +11 / -0 )

Shouldn't they be cooperating within a global body instead of a national one in the development of common standards?

10 ( +10 / -0 )

Japan going cashless is as likely as Japan completely giving up the hanko and pachinko. Good luck with that!

8 ( +9 / -1 )

I dream of a common point card. I have almost 30 different point cards.

cash is fine...

8 ( +8 / -0 )

Meanwhile new entrants using Visa and Mastercard's infrastructure will run rings around them.

7 ( +7 / -0 )

Use cash. If your shopping budget is 10,000 yen and you have 10,000 yen cash in your pocket, you will stay within your budget easily.

5 ( +6 / -1 )

i can’t understand why anybody would want to carry around so many different points cards in their wallets, just so they can get themselves a free bar of soap or onigiri

4 ( +4 / -0 )

I worry this new cashless system is going to require more paperwork, more verification, more passwords and a new smartphone that will accept the new apps.

Don't get me wrong, I think its a good idea if there is another pandemic, the gov can send money out to everyone in a flash, but don't make me buy another smartphone or even force me to own a smartphone.

3 ( +3 / -0 )

I dream of a common point card. I have almost 30 different point cards.

That's why I don't use any of them. No point in having one card for each shop. I'll stick to my credit card and Suica.

3 ( +4 / -1 )

bjorn:

C A S H works fine, if they wont take my CASH i wont shop at their store they simply won't be getting my money.

I wouldn't want to see stores refuse cash. The elderly are more confident with cash unless the ore-ore calls sart again. But for many of us under 60's, we're sick of all those 1 and 5 yen coins, and fiddling about with change and heavy, bulging wallets.

3 ( +4 / -1 )

That’s of no use without first a common infrastructure for cashless incomes. lol

2 ( +2 / -0 )

Why ? Isn't yen the official currency accepted nationally ? Bank card working fine. No need of anything else otherwise stuck in Japan.

2 ( +2 / -0 )

This will do nothing as long as Osaifu Keitai is needed for most phones and payment systems.

Anyone without a phone bought from the big providers will still not be able to do anything

Japan wants to host the Olympics but any tourism used to using their phone to pay in most other developed countries cannot use it here.

Sure iPhone Apple pay can be made to work with some work around but seeing Android is by far the phone most used in the world this leave most users without a Japanese phone with Osaifu Keitai  out of luck.

2 ( +2 / -0 )

For years I try and use a credit card for everything and have got thousands of dollars back, why would anyone not use a credit card and make money back?

1 ( +3 / -2 )

@Dave Credit card cost you more as retailers need to increase their prices to afford to have the credit card companies take their slice of every POS purchase. Is it 3% of the sale that goes to the credit card company?

1 ( +1 / -0 )

A cashless society is a thinly-veiled attempt to monitor, trace, and tax your money. Everything will be permanently recorded on a central database and is yet another loss of liberty and freedom to big business and their govt lackeys. Why do you think there's such a push for it in Japan? The amount of untaxed cash sitting in bedroom safes in Japan is staggering and the government wants it. Be careful what you wish for as you may not like it once you have it.

1 ( +1 / -0 )

C A S H works fine, if they wont take my CASH i wont shop at their store they simply won't be getting my money.

0 ( +3 / -3 )

Its time to go cashless! Its very irritating at Cashier points when someone takes much time to pay the exact amount. note, coins including 1 Yen.

Especially obachan, ojichan!! Also young women and men.

0 ( +3 / -3 )

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