NFC TIMES Exclusive Insight – SoftBank Group’s reported plans to launch a mobile digital payments service in Japan by year’s end–collaborating with Indian mobile payments provider Paytm–is an attempt by SoftBank Group founder Masayoshi Son to do what other large companies have tried and failed to do: wean Japanese consumers off of cash.
Son’s group owns large stakes in such e-commerce and other internet giants as China’s Alibaba, India’s Paytm and Snapdeal, Yahoo Japan and Uber, as well as U.S. telco Sprint and semiconductor and software design company Arm Holdings. It also owns Japan’s third largest telco SoftBank mobile. The billionaire reportedly has plans to expand outward from Japan with a global digital payments service.
But if the reports about launching a digital payments service are true, Son will have to first overcome Japanese consumers’ stubborn attachment to cash, which makes up 62% to 80% of transactions by value, according to estimates.