PayPay app leaflets are displayed at rice dealer's shop in Tokyo. Photo: REUTERS/Sam Nussey
tech

SoftBank's PayPay surges ahead in Japan's digital payments race

16 Comments
By Sam Nussey

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16 Comments
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I don't understand why regular ATM cards don't just work as cashless, like everywhere else in the world.

Why should we have to move money from the bank, in to a 3rd party, in order to use electronic money.

15 ( +16 / -1 )

It's an interesting concept, big corporations profiting when people use their money. What are the reasons the government gave to promote this change?

Why should we have to move money from the bank, in to a 3rd party, in order to use electronic money.

Because banks in Japan live in the XX century.

3 ( +3 / -0 )

Bombarded by ads on the net every minute to join up, guess many give up and join, another money spinner for Son and Softwank, so I will never sign up

1 ( +5 / -4 )

Why should we have to move money from the bank, in to a 3rd party, in order to use electronic money.

It was much harder some 10 or 15 years ago when no supermarkets/small shops accepted credit card at all.

Now I use my Visa card pretty much as a Debit card, for groceries, restaurants etc. but yes, it was weird arriving in the futuristic Japan just to realize they don't accept debit cards at all.

6 ( +7 / -1 )

"Because banks in Japan live in the XX century."

Japanese banks are still in business. Can the same be said about Lehman or Barrings?

-6 ( +0 / -6 )

@ Mat

Agreed 100%.

Before coming to Japan over 20 years ago the use of an ATM card in Australia to purchase many goods was very straightforward. In Australia the supermarket checkout was also almost like an ATM - if you paid for your groceries with an ATM card, the checkout person always asking if you also wanted to get cash from the register as part of the transaction. As such, there was no need to go to the ATM!

Then again, most if not all retailers accepted credit cards in the 1990s, something which retailers in Japan did not.

The plethora of these electronic payment card systems in Japan just seems to unnecessarily complicated with, as Mat wrote, having to transfer cash from bank accounts to cards.

7 ( +7 / -0 )

Japanese banks are still in business. Can the same be said about Lehman or Barrings [sic]?

Lehman Brothers and Barings Bank were very different types of financial institutions to which (I believe) kowaicoffee was referring (i.e. savings banks for the ordinary folk).

1 ( +2 / -1 )

I've been using PayPay for quite some time. I linked my credit cards, which is the source I usually use. (Although, I've been carrying a cash balance ever since I deposited Y20man to get the Y5sen MyNa bonus. But, once I burn through that, it's back to CreCa.)

I actually prefer the "old technology" QR code method during Covid. No physical contact like is often the case with credit card. The cashier doesn't need to handle my card. Nor, do I have to enter a PIN on a keypad. Completely touchless.

I also have Line Pay and R Pay accounts, but rarely use them. I usually use the R Pay app only for the R Point function. I often open R Pay app first, have the cashier apply R Points, then use PayPay for actual payment. My poor Line Pay app must be so lonely.

0 ( +2 / -2 )

The plethora of these electronic payment card systems in Japan just seems to unnecessarily complicated with, as Mat wrote, having to transfer cash from bank accounts to cards.

Just link your credit cards. No need to transfer money from your bank.

Back in the US, I would use Google Pay on my phone. Basically, the same deal, except NFC vs QR. Credit cards linked to app. Totally touchless. Easy.

0 ( +1 / -1 )

I don't understand why regular ATM cards don't just work as cashless, like everywhere else in the world.

Because banks are traditional companies and *Softbank is not. 'Old dog, new trick' syndrome.

*And Rakuten, etc.

-1 ( +0 / -1 )

People are missing the point of this ”new technology”. Tracking everything you buy and drive out competition by offering ”free for small business” and other cash-back perks that will not last. As soon as everybody is on board, they will hike up the prices with no alternatives.

This is the ”app” business model that enabled Uber, WeWork and others, with illegal money losing schemes never meant to make any money until the competition is gone.

Can’t wait for these ”apps” to be gone.

-1 ( +1 / -2 )

There are still many retailers that don't accept credit or debit card but cash back here in the kansai area gyomu super, lamu are strictly cash. Last weekend was shocked wgen my visa debit card was turned down at mr donut. Money still rules here in J-land.

-2 ( +0 / -2 )

I stand in line waiting for these new payment techs to figure out how to pay...

and when it comes to my turn, I complete my payment with my Credit Card in a few Seconds...

I dislike those newbie show-offs, who each need a kick up the ass to keep things moving

-1 ( +1 / -2 )

Been using pay pay for about a year and a half now. They still offer 30% cash backs from time to time. Totally worth it. I've saved 24,797 yen so far according to the app.

0 ( +1 / -1 )

With the amount of publicity they used and how strongly they pushed for both consumers and business to adopt it this is no surprise, now the honeymoon finishes and we will see how convenient it will actually be or not once the competition was taken off the game.

-1 ( +0 / -1 )

I don't understand why regular ATM cards don't just work as cashless, like everywhere else in the world.

The answers is you should have EDC Machine to read that cards, but if you use e-wallet you just go with QR code (paper) and it's super cheap compared to expensive machine.

-1 ( +0 / -1 )

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