Japan moves for a cashless payment system

In today’s age, most if not all have developed a strong dependence and heavy reliance on technology and digitization. These progressive advances in applied sciences including but not limited to automations and telecommunications grant users so much convenience to allow for a more effective and efficient environment whether at home, in school, at work, or anywhere else.

 

Photo credit to: https://www.japantimes.co.jp

The aim of technology in the most simple of terms is to be able to do certain tasks for the convenience of the user. Many centuries ago, information was limited to local publications or through a town crier such that people were completely oblivious to the events that occur in neighbouring areas. There were also limitations as to travel such that our very distant ancestors may have spent their whole lives without ever leaving the community they grew up in. Lack of technology likewise prevented communications between persons from different areas in the world.

 

With the multitude of advances in the field of science, technology has created a way to destroy these restrictive barriers in order to provide effective and efficient avenues to perform what were previously thought to be impossible feats.

 

One of the methods include “cashless payments.” This convenient mode of transaction is defined by the government of Japan as payments made using credit cards, debit cards, and even e-money. About six years from now, World Expo 2025 will be held in Osaka, Japan and government officials aim to encourage the implementation of cashless transactions by that year. The current global average standard for cashless payments is pegged at 40% and, in the year 2018, the data shows that Japan still lagged behind at only 24% as compared to other nations.

 

The Japanese government initially intended to boost cashless transactions to promote foreign tourism in Japan especially with the upcoming 2020 Olympic and Paralympic Games just around the corner. Foreign tourists are thus encouraged to use their current credit and debit cards for their convenience and also to energize the country’s economy.

 


Apart from economical factors, a cashless payment system is also seen as a method to address some major concerns with regard to the country’s decreasing labor force. With a reduced need to manually count and handle cash, operational efficiency will be optimized especially when it comes to large scale transactions.

 

Reference: The State of Cashless Payments in Japan

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