TOKYO – Nikkei Asian Review reports that Japanese Prime Minister Shinzo Abe wants more people to embrace mobile payments, but consumer adoption of mobile in lieu of cash has been a challenge. In fact, cash in king in Japan, thanks to the abundance of ATMs in convenience stores and the growth of mobile ATMs.
“Efficient, multitasking ATMs seem to be around almost every corner in Japan, making cash the most convenient means of daily transactions. And if there are no ATMs around, banks seem ready to bring one to your area,” writes the news source, adding that banks and ATM manufacturers aren’t showing any signs of “giving up” on cash.
In June, the news source writes that Bank of Kyoto rolled out a mobile ATM mounted on the back of a truck that visits sporting events, residential and shopping complexes. A more compact, van-mounted
ATM is expected to roll out later this year by Oki Electric Industry for smaller regional lenders. Oki developed the first ATM for a convenience store in 2001.
“While such mobile ATMs are mainly for remote areas, ATMs are proliferating in big cities through convenience stores,” writes the news source, adding that c-stores are becoming a “second wallet” for many consumers, according an Oki spokesman, noting that consumers use ATMs to withdraw small amounts of cash so they won’t overspend. ATMs in Japan also attract shoppers into c-stores, where they can interact with store staff.
“Cash is both the most popular payment method worldwide, accounting for over 75% of all retail payments today, and is a store of value trusted by humanity,” said Michael Lee, CEO of the U.S.-based ATM Industry Association. “In addition, it is the No. 1 back-up plan when electronic systems go down.”
Prime Minister Shinzo Abe, however, wants Japanese consumers to adopt mobile payments, much like consumers in China are embracing digital. The news source cites that there are concerns “about the emergence of China as a digital payment superpower, putting it in a strong position to be the dominant service provider in Asia.”
For example, firms such as Alibaba and Tencent already control the Asia’s retail payment infrastructure through their mobile-based payment services, Alipay and WeChat Pay. The news source notes that Alibaba is looking to grow its payments infrastructure throughout Asia, including in South Korea, Thailand, Indonesia and India, and that it’s also eyeing the Japanese market.
According to Euromonitor, 62% of consumer payments in Japan are made with cash, compared with 38% in China, and 23% in the United States.
To learn more about the Asian convenience retail market, trend and insights, plan to attend the NACS Convenience Summit–Asia, March 12–15, 2018, in Hong Kong. Register today at convenience.org/CSA, or contact Michael Davis at mdavis@convenience.org to learn more about the event.