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From 2018 to 2019
Read trends in the Japanese payment

payment system that is indispensable to our lives is rapidly evolving with digital technology and is moving toward cashless society. This movement is common to both the Web and real stores, and a smarter and more convenient purchasing experience (UX) has become possible. Above all, the change in 2018 is big, and it has a big meaning in terms of looking at the beginning of 2019. I would like to give an overview of this year's payments, including a look back.

As of 2015, payment in each country was 89.1% in South Korea, 60.0% in China, and 18.4% in Japan compared to more than 50% in Canada, the United Kingdom, and Australia, raising a sense of crisis for the government. (* 1). However, looking at the movements from last year, there are signs of a big breakthrough.

*1 Source: Ministry of Ministry of Economy, Trade and Industry "Cashless Vision"

Cashless / payment

In April, the Ministry of Ministry of Economy, Trade and Industry announced the "Cashless Vision." It sent a strong message to the market to further promote Japan's cashless system.
In June 2017, the "Act to Partially Amend the Banking Act" was enacted, and the revised Banking Act has been in effect since June 2018.
In November, it was decided that the World Exposition will be held in Osaka in 2025. In addition to becoming a tourism-oriented country, it has come to be recognized as a new milestone toward cashless payments.
In December, the number of inbound tourists exceeded 30 million for the first time (*2). In 2018, the amount spent by foreign visitors to Japan was 4,506.4 billion yen (*3), which reminded us of the great influence of inbound tourism on the Japan economy.

(* 2) Source: From the Japan National Tourism Organization (JNTO) monthly and yearly statistical data (foreigners visiting Japan and Japanese departing from Japan)

(* 3) Source: Japan Tourism Agency Consumption Trend Survey for Foreigners Visiting Japan From the 2018 National Survey Results

There is no end to the list, but when it comes to topics in 2018, there is no other than the fact that smartphone-based payment services appeared one after another and became popular all at once. Each company has its own services, but even if you look at it alone, it is by instant withdrawal of bank account from a smartphone app developed jointly with The Bank of Yokohama in 2016 payment The service "Ginko Pay" is being provided to an expanding number of destinations. In the same way, the company announced that it will work on the "Cash Out Service by Ticket Vending Machine" that allows you to withdraw cash from Tokyu Corporation (Tokyu Corporation) ticket vending machines using the same Ginko Pay mechanism, with the goal of starting the service at each station on the Tokyu Line from the spring of 2019 (in addition to Tokyu Corporation, Realized as a joint project with The Bank of Yokohama Japan Post Bank).

In this way, payment using smartphones one after another, providing convenience and incentives to users, while standardizing as a measure to retain customers, spurring payment In 2019, there will be a payment service releases.

United Kingdom, cashless, subway

By the way, Japan is a cashless payment power map showing a certain percentage of electronic money centered on credit cards, but looking around the world, there are other types of cashless developed countries. From these precedent cases, it seems possible to read the future payment situation in Japan.

One pattern that can be seen is the United Kingdom, where cashless payment is said to be more popular than Japan. With a VISA debit card issued by a bank, the subway fare payment is possible, and the gate opens just by holding it over. In the UK, financial institution handles everything from account management to payment, so Japanese transportation electronic money is said to be "Osaifu" that needs to be charged. Then, this is like payment with the passbook itself. On the contrary, the number of "non-cash" stores is increasing in London.

Sweden is also showing individual evolution. finance information to national numbers, it buy now pay later" service company that can be said to be the world's top runner. Making full use of advanced fintech that combines artificial intelligence (AI), payment and credit, we are expanding into the world by providing payment methods based on credit even in areas where cards are not widespread.

In 2019, Japan will make great progress toward cashless society toward the 2020 Tokyo Olympics. In the United Kingdom mentioned above, the cash usage rate has been declining since the 2012 London Olympics, and the cash and debit card usage rates have reversed in 2017. (※Four)
In addition, there are factors that could have a significant impact on the market in 2019, such as the spread of 5G, which will bring about decisive changes in the mobile environment, and the consumption tax hike in October. I can't foresee it, but I would like to continue to take a closer look at trends in the industry.

(* 4) Source: From UK Payment Markets Summary 2018

* The copyright of articles and images in this content belongs to GMO Payment Gateway, Inc.