In a society traditionally known for its cash-based economy, the rise of alternative payment methods in Japan is a significant trend that cannot be overlooked. Over the years, Japan has seen a significant evolution in its payment landscape, with a shift from the customary bills and coins to a variety of cashless payment systems. This article provides an in-depth overview of the top mobile payment services available in Japan that have changed the way transactions are carried out across the country.
Understanding Japan Cashless Payment Solutions
Despite its reputation for being a largely cash-based society, Japan has made substantial strides in promoting cashless transactions. This has been propelled by the increasing prevalence of point cards, mobile apps, and other digital payment systems. However, it’s important to note that the availability of these cashless options often requires a local Japanese phone number for setup and are more accessible to residents than short-term visitors.
Note: Despite the convenience of cashless payments, it is advisable to carry some cash while in Japan as many smaller establishments still operate on a cash-only basis.
The Benefits of Going Cashless
Adopting cashless payment systems offers a plethora of benefits for users. From the convenience of not having to carry around physical cash to the ability to track your spending digitally, the advantages are numerous. Additionally, these systems also provide a safer and more secure way of transacting, reducing the risks associated with carrying large amounts of cash.
The Cashless Landscape in Japan
As per a report by the Bank of Japan, the most popular cashless payment methods in Japan as of August 2023 include credit cards, debit cards, electronic money, and QR code payment services. Given the plethora of options available, it can be overwhelming to figure out which one works best for you. To help simplify this, we have compiled a list of some of the most common and convenient cashless payment systems in Japan.
1. PayPay
Launched in 2018, PayPay is a leading mobile payment app in Japan that uses QR codes and barcodes for transactions. It is a result of a joint venture between SoftBank Group and Yahoo Japan, boasting over 41 million registered users.
1.1 Key Features of PayPay
- Wide Acceptance: PayPay is accepted at more than 3.4 million stores nationwide, including convenience stores, drug stores, and restaurants. It can also be used for online services and bill payments.
- Earn as You Spend: Users can earn PayPay bonuses on their purchases, leading to significant savings.
- Secure Payments: PayPay ensures the safety of user information and prevents unauthorized use, providing users with a secure platform for transactions.
- Sharing Balance: PayPay allows users to easily share their balance with friends or family, making it a convenient option for group payments or sending money to loved ones.
- Versatility: Beyond shopping, PayPay can be used for a variety of functions including paying utility bills, ordering delivery, and gaining investment experience.
2. Line Pay
Introduced worldwide in December 2014, Line Pay allows users to request and send money from their contact list and make mobile payments in stores.
2.1 Key Features of Line Pay
- Easy Signup: Any Line user can easily sign up for Line Pay.
- Quick Payments: Line Pay enables users to make quick payments at Line Pay Merchant outlets.
- Security: A 5-step security procedure protects users’ important payment information.
3. D-Barai
Launched by NTT DOCOMO, INC. in April 2018, D-Barai leverages the advantages of its “d POINT” loyalty program to increase its merchant base and expand its service offerings.
3.1 Key Features of D-Barai
- Wide Availability: D-Barai can be used at stores, online, and even for utility payments.
- Choice of Payment Methods: D-Barai payments can be combined with your monthly cell phone bill, or paid by credit card, bank account, or ATM.
4. Rakuten Pay
Rakuten Pay is an electronic payment service provided by Rakuten, Inc. and its subsidiary, Rakuten Payment, Inc.
4.1 Key Features of Rakuten Pay
- Quick Payments: Make quick payments at stores and earn Rakuten Point with your smartphone.
- Expansion of Usage: Rakuten Pay is continually expanding the number of stores where you can use it.
- Usage of Rakuten Points: You can earn Rakuten points based on the amount of your bill and use them at stores or in other Rakuten services.
5. Apple Pay
Apple Pay is a mobile payment and digital wallet service developed by Apple Inc. that allows users to pay in person, via iOS apps, and on the web using Safari.
5.1 Key Features of Apple Pay
- Convenience: Apple Pay is already on your device and can be accessed without downloading any separate app.
- Security: Personal data Protected. When you make a purchase, Apple Pay uses a device-specific number and unique transaction code.
6. Google Pay
Google Pay is a digital wallet and online payment system created by Google to support in-app, online, and in-person contactless purchases on mobile devices.
6.1 Key Features of Google Pay
- Simple Transactions: Google Pay allows users to send or receive money with zero fees, straight from their bank account to almost anyone.
- Endless Rewards: Google Pay users can earn scratch cards and other rewards as they use the service.
- Security and Safety: Google Pay protects user money with a world-class security system that helps detect fraud and prevents hacking.
Mobile Payment Related FAQs
- Does Japan accept mobile payment?: Yes, more and more places in Japan are starting to accept mobile payment services.
- Can I use Apple Pay in Japan?: Yes, many convenience stores and other shops in Japan accept Apple Pay.
- What is PayPay?: PayPay is the largest Japanese mobile payment application using QR code and barcode.
- Does Japan only accept cash?: While Japan has many establishments that accept only cash, most places accept credit cards and a rising number of stores also accept mobile payments.
Conclusion
With the rise in digitalization and the consequent shift towards cashless payments, Japan is evolving to meet the needs of the modern consumer. From PayPay to Google Pay, the variety of mobile payment services available in Japan is expanding the possibilities for cashless transactions. Whether you’re a resident or a short-term visitor, these platforms offer a convenient and secure way to manage your finances while in Japan.