NFC TIMES Exclusive Insight – As Japan continues to fight what to date has been a losing battle against cash, an announcement by the joint venture behind QR code-based payments service PayPay offers a little bit of encouragement.
PayPay, which is backed by a joint venture between SoftBank Group and Yahoo! Japan and which uses technology from India’s Paytm, said that 10 months after launching the service last October, it already has registered 10 million accountholders, signed up merchants with a total of 1 million locations and processed more than 100 million payments. Japan, however, still has a long way to go to reduce the 80% of transactions that Japanese consumers pay for with cash, one of the highest percentages in the developed world.
That fondness for cash is despite Japan being the first market globally to roll out contactless-mobile payments with FeliCa-based wallet phones, and since then adding a range of NFC and QR-code based digital payments services. That includes NFC-enabled wallets Apple Pay and Google Pay, as well as other QR code- and bar code-based services, such as Rakuten Pay, Line Pay and J-Coin Pay. Japanese megabank Mizuho launched the latter service.