Payments via Smartphones Gradually Becoming Common in Japan

August 31, 2018

Tokyo- The number of restaurants, convenience stores and other shops accepting payments with smartphones using quick response, or QR, codes is rising in Japan although the pace of growth is slow.

Major information technology firms are working to promote the cashless payment system. Banks are also joining the new drive in the country, where cash still remains the main payment option.

The QR code payments require smartphone apps, such as Rakuten Pay of cybermall operator Rakuten Inc. and Line Pay of free messaging app provider Line Corp..

Shops have to shoulder around 3 pct of settlement commission fees to introduce QR code payments.

Line recently launched a campaign to make such fee payments unnecessary for three years. Major mobile phone carrier Softbank Corp. and Internet portal Yahoo Japan Corp. are set to start similar campaigns this autumn.

In cooperation with an IT firm, Bank of Yokohama has launched a QR code payment service for customers with deposit accounts at the regional lender operating mainly in Kanagawa Prefecture, south of Tokyo. Resona Bank and Japan Post Bank will follow suit.

Mizuho Bank, one of Japan's largest banks, will offer a service on a trial basis with such regional lenders as Toho Bank, based in the northeastern city of Fukushima.

Debates have kicked off on establishing unified QR code payment standards.

Still, the new services are not as widespread as they are abroad.

The manager of a Tokyo restaurant, which introduced a QR code payment format last year, said that the number of the QR code settlements totals "two or three a day at most" at the eatery.

QR code payment services are not familiar to the public, because the number of shops that have introduced such systems has been limited, the restaurant manager pointed out.

QR code payments will not spread in Japan unless the number of shops accepting any QR settlement app increases and unified standards are set, analysts said. Jiji Press