Digital moneys - what is what?

As you would point out, there has been a perception that Japan's financial industry has lagged behind in certain aspects, with the delayed adoption of credit cards being a representative example. However, in recent years, there have been several changes:

1. Credit card use has risen in Japan, especially among the younger generation and urban residents. More businesses, both local and international, now accept credit cards as a common payment method.

2. Japan is making strides towards a cashless society, driven by efforts from the government and businesses. Smartphone payments and electronic money are on the rise, gaining popularity in stores and public transportation. This shift reflects a growing trend towards digital payment adoption in the country.

3. Introduction of Financial Technology (FinTech): The financial industry is witnessing the introduction of financial technology (FinTech), leading to the development of new services and processes. This has resulted in improved efficiency and the provision of novel financial experiences.

4. International Collaboration and Regulatory Evolution: The Japanese financial industry is adapting to international financial regulations and is collaborating globally. This contributes to improvements in credit cards and cashless payment systems.

In summary, Japan's financial industry is evolving, and there is an expectation for further technological integration and service expansion in the future.

Today, we would like to talk about ‘digital money (denshi money in Japanese)’.

Here are the common types of cashless payment methods in Japan, along with the payment methods and procedures:

Electronic Money:

1. Prepaid type (prepayment)

2. Postpaid type (deferred payment)

3. Debit type (immediate payment)

·      Payment method: Tap a card or smartphone on the payment terminal.

QR Code Payment (Mobile Payment):

1. Prepaid type (prepayment)

2. Postpaid type (deferred payment)

 ·      Payment method: Scan or tap on the QR code.

A list of various digital payment methods and services in Japan. Here's a summary:

1. Suica and Pasmo:

• Type: Rechargeable contactless smart cards

• Usage: Public transportation, purchases at vending machines, and convenience stores.

1. Rakuten Pay:

• Type: Digital wallet and payment service

• Provider: Rakuten (e-commerce and financial services company)

1. LINE Pay:

• Type: Mobile payment and digital wallet service

• Provider: LINE Corporation

1. PayPay:

• Type: Mobile payment platform

• Features: Popular, often offers cashback and discounts

1. Merpay:

• Type: Mobile payment service

• Operator: Mercari (online marketplace)

1. Apple Pay and Google Pay:

• Type: International mobile payment systems

• Usage: Payments using smartphones

1. Various Bank Apps:

• Type: Mobile banking apps

• Features: Offer digital payments, transfers, and account management

1. Cryptocurrency Exchanges:

• Type: Platforms for trading cryptocurrencies like Bitcoin

These services reflect the diverse landscape of digital payments in Japan, ranging from contactless cards and mobile payment apps to international systems and cryptocurrency exchanges.

In the following articles, we will talk about how to set up each of these major digital moneys :)