Japan currently ranks as one of the most technologically advanced countries globally, with over 90 million smartphone users. The massive number of people using these devices has given rise to mobile payment methods to facilitate quicker transactions.
Such gateways have come a long way from what they used to be, going from Osaifu-Keitai to QR codes. This article explores the evolution of mobile payment systems in the country, their impact on daily lives, and what to expect later.
Merpay Payment System and the Casino Industry
The casino industry followed the trend and incorporated mobile payment systems in its services. To help you choose the best one, our professional experts have reviewed Merpay Casino with smart payment option available for Japanese gamblers. This online platform supports such methods for deposits and withdrawals. Using mobile systems at an online casino has several benefits but also a few drawbacks.
The following are their pros and cons:
Pros
- Fast and easy transactions.
- Instant deposits.
- Fast payouts.
- Safe payments.
- Eliminates the need to visit physical locations for transactions.
Cons
- Not all casino sites in Japan support them for withdrawals.
- Some payment providers charge fees.
When choosing a platform, read its payment terms. Check if there are no extra fees for cashing out the earnings you make from playing its casino games online. Also, be sure that the online casino allows withdrawals via mobile systems before placing a request.
Rise of Contactless Payments
Before Osaifu Ketai, debit, and credit cards were the payment leaders in the nation. One needed an active bank account and an actual card to use them for transactions. The launch of NTT Docoma’s system changed things and introduced contactless payments.
Unlike traditional methods, contactless payments in Japan provide a swift and convenient alternative, aligning with the nation’s tech-forward culture. They operate by using Near Field Communication (NFC) technology. As such, users pay by simply tapping their smartphones near compatible terminals.
Such methods enhance efficiency, reducing the time required for each transaction and minimizing the need for physical contact with payment devices. The ease of use and speed make digital payments particularly appealing in busy urban settings. Furthermore, contactless transactions employ high security with tokenization and encryption.
QR Code Revolution
With the adoption of the intelligent payment option, developers searched for better ways to simplify the mobile transaction process. Hence, they introduced QR codes. These are black-and-white patterns that are widespread in the country.
For deposits, one had to scan the QR code with their device. It’s quick, doesn’t need physical contact, and fits perfectly into the fast-paced city life in Japan. This sophisticated technology made itself available to users from all walks of life. You’ll find them in big stores, local shops, and even vending machines.
QR codes became even more popular during the COVID-19 pandemic. People wanted touch-free options, so these codes started showing up not just for payments but also for accessing menus and getting information. They remained a standard option even after the pandemic.
Mobile Wallets and Applications
The landscape of financial transactions in Japan has shifted significantly with the emergence of mobile payment applications and wallets. Industry-leading companies bought into the Osaifu Ketai system and established similar but more sophisticated options.
Mobile wallets remove the need to share financial details with a third party. That’s because they work as intermediaries between your bank and the second recipient. Instead of online payment directly from your bank account, you transfer funds to the electronic purse. Moving these funds to and from your e-wallet is a breeze and only requires the wallet’s ID.
Several of these options exist. One of them is Apple Pay, which made its debut in 2014. Before that, in 2011, Google released its electronic wallet. Though initially limited to Android users, it soon spread its wings to accommodate iOS operating systems.
Electronic wallets come with applications that serve as the transaction medium. One of the perks of such apps is the ability to track transactions. They note incoming and outgoing payments, allowing easy viewing of previous deposit or withdrawal records.
Banks were also quick to buy the idea of applications. Several institutions launched their app versions so users can quickly send and receive funds from their hand-held devices.
Remember that your device must meet specific criteria to use an app, depending on the operating system. The table below contains general information on the requirements for smooth operations:
iOS | Android | |
Version | 10.0 and newer | 7.0 and newer |
RAM | 4 GB | 8 GB |
Storage | 1GB and above | 1GB and above |
Future Prospects and Innovations
Mobile payment systems’ prospects in Japan look promising. As these options gain prominence, they will seamlessly integrate with other sectors. Competition among providers might also increase. Companies will introduce loyalty programs, discounts, and enhanced financial management tools within apps to remain relevant in the market.
Systems are also poised to get smarter. Like contactless transactions when purchasing goods, users also transact among themselves by simply bringing their devices closer. Transactions could also transcend mobile phones to include smartwatches and other devices.
Security will remain a top concern, and experts expect newer innovations to protect user data and transactions. Biometric authentication, including fingerprint and facial recognition, might also become more prevalent, adding security to mobile payment systems.
Final Thoughts
The evolution of mobile payment systems in Japan reflects a remarkable journey from conventional transactions to a better financial landscape. We’ve explored the early days of Osaifu Keitai and the widespread adoption of contactless payments and QR codes. These systems streamlined daily transactions and made the payment process efficient and convenient.
As Japan continues to embrace innovations, the future promises more seamless, secure, and intelligent ways of handling transactions. We look forward to developers facilitating transactions with smartwatches and other devices. More substantial security features will also be incorporated, allowing you to make payments without worrying about the safety of your financial details.
Markus lives in San Francisco, California and is the video game and audio expert on Good e-Reader! He has a huge interest in new e-readers and tablets, and gaming.