The Ministry of Finance published a report in December 2024 investigating and analyzing the current situation and challenges of payment environments in Japan and foreign countries (US, UK, Germany, France), including the characteristics and adoption rates of various payment methods, legal frameworks, private sector services and revenue models, and usage trends by stakeholders.
Key Points
Background and Purpose of the Survey
- As economic and social digitization progresses and cashless payments become more widespread, various countries are seriously considering CBDC (Central Bank Digital Currency)
- In Japan, an expert committee produced a "Summary" in December 2023 and an "Interim Report" in April 2024, with the role-sharing between CBDC and other payment methods becoming a major point of discussion
- The "Basic Policy on Economic and Fiscal Management and Reform 2024" called for deepening consideration while taking into account developments in other countries
- This survey was conducted to serve as an aid for advancing CBDC consideration in Japan
Survey Targets and Scope
- Survey target countries: Japan, US, UK, Germany, France (5 countries)
- Payment method categories: Electronic money, QR code payments, cash, bank transfers/direct debits, debit cards, credit cards, BNPL (Buy Now Pay Later), cryptocurrency, stablecoins (9 types)
- Detailed definitions of characteristics such as prepaid, immediate payment, and deferred payment for each payment method
- Examples include transportation-related electronic money like Suica and retail-related ones like WAON for electronic money, and PayPay and Rakuten Pay for QR code payments
Survey Perspectives and Methods
- Four survey perspectives: ①Functions and roles of various payment methods, ②Private payment service provider trends, ③Usage trends by stakeholders (users and stores), ④Analysis of preferences and challenges regarding various payment methods
- Survey methods: Public literature research (information published by central banks and financial regulatory authorities), expert interviews (targeting 4 countries: US, UK, Germany, France), SNS analysis (analyzing consumer evaluations and impressions on X, etc.)
- Detailed specifications investigated include payment media, transaction methods, available locations, payment timing, possession/payment limits, offline payment capability, identity verification, anonymity, etc.
The article suggests that in considering CBDC introduction, it is important to ensure that various payment methods such as cash, bank deposits, electronic money, and QR code payments function properly and coexist, thereby securing user choice and improving convenience, while ensuring the stability and efficiency of the overall payment system.