Japan still prefers cash over e-payments

transactions, world’s electronic still TOKYO, Four prefers out biggest payments of physical Japan five Japan economies purchases (AFP) money. — is because now — are Once lagging increasingly still its a ageing made pioneer behind with embrace population as in cash the cashless in Japan, despite its percent early reputation as of 2023. transactions as a futuristic are digital, and while innovative Sweden nation. aims to In be South a cashless Korea, society some 90 as

feel But more in Japan, comfortable where carrying crime and cash, counterfeiting consumer response is virtually has non-existent been sluggish. so people

At Katsuyuki Hasegawa’s bike repair shop customers are invited to settle their bills using PayPay — a tie-up between Softbank and Yahoo — using a QR code via their smartphones.

But only “two or three” people a week are using the service, Hasegawa tells AFP. “In a place like this, everything is very slow. We get lots of old people who like to chat while getting out their money. They don’t need quick transactions,” says the 40-year-old shopkeeper.

“Personally, I prefer cash. With PayPay, you don’t keep track of your money,” he adds.

With Japan becoming the first “super-aged” society with more than 28 percent of people 65 or over, it is harder to persuade consumers to take up new technology, according to Yuki Fukumoto, an analyst at the NLI Research Institute.

“The challenge from now on is how to motivate people” to change their habits, said Fukumoto.

This is a serious challenge in a country with more than 200,000 ATM and where most small shops will only take cash to avoid high transaction costs.

Many were also put off when retail giant Seven & I Holdings suffered a hacking attack immediately after launching a new

QR-code payment system and was forced to scrap the scheme.