Japan Adopts Barcodes and QR Codes as New Method for Cashless Transactions
In a recent survey by Kufū Company Holdings, it was revealed that QR/barcode payments have become the leading cashless payment method in Japan. The survey, conducted among 2,559 users of the company's household budgeting app and related services, found that an impressive 84.2% of respondents use QR/barcode payments for purchases, surpassing the usage of physical credit cards (76.3%).
The popularity of QR/barcode payments in Japan can be attributed to several key benefits. Firstly, they offer the opportunity to earn points or receive cashback, which is a significant motivator for consumers, especially in the context of rising prices. Secondly, they provide a speedy and convenient checkout experience, making transactions quick and easy. Thirdly, they offer peer-to-peer money transfer functions, which are particularly useful for splitting bills in group situations. Lastly, these payments allow contactless, quick, and widely accessible payments directly from smartphones without the need for physical cards or PINs.
However, the survey also highlighted some concerns and inconveniences associated with QR/barcode payments. A significant number of respondents (62.2%) have expressed that not all stores accept QR/barcode payments as a concern. While security concerns, such as unauthorized use, worry 26.4% of respondents, they are not the top concern.
Despite these concerns, Japan's adoption of QR/barcode payments contrasts with other countries where card-based payments (credit, debit) or electronic money remain more prevalent. While electronic money cards (like transit IC cards) are still popular and widely used, QR/barcode payments offer advantages around rewards and flexible user convenience.
The total cashless payment market in Japan, including credit cards, debit cards, electronic money, and QR/barcode payments, was valued at about 127 trillion yen in 2023 and is expected to grow substantially by 2030.
In summary, QR/barcode code payments are now the leading cashless payment method in Japan, favored for their speed, convenience, and rewards. However, store acceptance remains a notable concern for a majority of respondents (62.2%), while security concerns are less prominent (26.4%).
In the lifestyle realm of Japan, QR/barcode payments are gaining popularity not only for their speedy and convenient checkout experience but also due to the opportunity to earn points or receive cashback. On the other hand, technology-driven advancements in finance, such as QR/barcode payments, also offer peer-to-peer money transfer functions that are particularly useful in various lifestyle situations.
