Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Japan to look at building a common infrastructure for digital payments

Published 2020-06-03, 03:07 a/m
Updated 2020-06-03, 03:18 a/m
© Reuters. FILE PHOTO: A shopper checks out at an unmanned cash register with using her mobile phone at convenience chain store Lawson in Tokyo

© Reuters. FILE PHOTO: A shopper checks out at an unmanned cash register with using her mobile phone at convenience chain store Lawson in Tokyo

By Leika Kihara

TOKYO (Reuters) - Japan's three biggest banks have set up a study group that will look at possibly building a common settlement infrastructure for digital payments, an initiative backed by the central bank and the country's financial regulator.

The Japanese are most cash-loving population in the world and everyday transactions are usually completed in notes and coins. Authorities have been, however, keen to promote cashless transactions to increase productivity and more recently to reduce contact between people amid the coronavirus pandemic.

Unlike countries such as China where one or two digital payment systems dominate the market, Japan has a plethora of offerings competing against each other.

"Japan has numerous platforms for cashless settlement, but they have yet to overwhelm the usage of cash," Hiromi Yamaoka, a former central bank executive who will chair the group, said in an online briefing.

"One solution could be to enhance the inter-operability of digital currencies and infrastructure."

The core banks of Mitsubishi UFJ Financial Group Inc (T:8306), Mizuho Financial Group Inc (T:8411) and Sumitomo Mitsui Financial Group Inc (T:8316) as well as East Japan Railway (T:9020) and several other non-financial firms will participate in the group.

Representatives from the Bank of Japan, the Ministry of Finance and the Financial Services Agency will attend as observers, said cryptocurrency exchange DeCurret, which will organise the study group. It will meet up to twice a month from June through September.

The three banks have each rolled out their own digital payment systems but lag efforts by tech firms such as SoftBank Group (T:9984) unit PayPay.

The study group may pave the way for the megabanks to link their systems to East Japan Railway's popular Suica smart transit card, the Nikkei newspaper reported on Wednesday.

© Reuters. FILE PHOTO: A shopper checks out at an unmanned cash register with using her mobile phone at convenience chain store Lawson in Tokyo

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.