A survey report published on December 20, 2024, by the Commerce and Service Group, Commerce and Information Policy Bureau, Ministry of Economy, Trade and Industry, on methods for reducing the merchant burden associated with cashless payments. The survey was conducted by the Cross-Industry Finance Consulting Unit of NTT DATA Institute of Management Consulting, Inc.
Background and Purpose of the Project
The promotion of cashless payments is an important initiative that contributes to improving consumer convenience, enhancing store efficiency and increasing sales, and promoting data utilization. The government has set the goal in the Growth Strategy Follow-up to "aim to double the cashless payment ratio to approximately 40% by June 2025."
In FY2023, through the "FY2023 Business on Optimization of Commercial Transaction and Service Environment (Monitoring Survey and Study on Reducing Merchant Burden in Credit Card Transactions and Survey on Expanding B2B Cashless Transactions)," surveys were conducted on the background, content, and effects and impacts of initiatives implemented in overseas countries to further consider measures for reducing merchant burden associated with cashless payments. Comparisons and verifications with Japan's initiatives and examinations of the applicability of each initiative to Japan were conducted.
Survey Implementation Content
This project picked up priority measures considered for reducing merchant burden associated with cashless payments, based on the additional measure proposals organized in last year's survey, and specifically examined the feasibility and effective implementation methods in Japan. It also examined initiatives to improve awareness of standard interchange fee rates and merchant fee allocation rates disclosed by international brands.
Specifically, the following three items were implemented:
1. Overseas Survey
An overseas survey was conducted for in-depth analysis of additional measures for reducing merchant burden associated with cashless payments. Detailed surveys were conducted on the consideration and implementation status of merchant burden reduction measures in overseas countries, and their applicability to Japan was verified.
2. In-Depth Survey
Specific examinations were conducted on the domestic feasibility and effective implementation methods of additional measures for reducing merchant burden associated with cashless payments. In-depth evaluation was conducted on payment schemes, remittance schemes, fee regulation and surcharge liberalization.
3. Initiative Examination
Initiatives to improve awareness of standard interchange fee rates and merchant fee allocation rates disclosed by international brands were examined. This aims to create mechanisms that allow merchants to select payment services in a more transparent environment.
Survey Characteristics
This survey is a comprehensive report spanning 227 pages, covering a wide range from the latest trends and environmental changes related to cashless payments in Japan, merchant burden reduction measures addressed by this project, selection and scope definition of in-depth target measures, to detailed analysis of overseas surveys and domestic examinations.
It includes overall survey result summaries and individual measure and comprehensive wrap-ups, and detailed information on initiatives to improve awareness of standard interchange fee rates and merchant fee allocation rates, as well as detailed response situations in overseas countries, are included as appendices.
The article positions this as a comprehensive survey research that examines the feasibility and applicability of overseas cases to Japan for policy consideration aimed at achieving both promotion of cashless payment diffusion and reduction of merchant burden.