Mobile mobile payment

Nanaco – e-cash and m-cash for Seven-Eleven

Seven-Eleven rolls out national electronic money and mobile payment system

Retail chain AEON follows with WAON e-cash and mobile money

This week two of Japan’s largest retail chains roll out electronic and mobile cash: Monday April 23rd, 2007 the Seven & I Holdings Group started “nanaco” and tomorrow, Friday April 27th, 2007, the AEON retail group will start “WAON”.

For detailed documentation and analysis of Japan’s highly developed e-money and mobile payment sector, download and read our report “Mobile payments, e-money and mobile credit in Japan”.

At first sight the massive roll-out of electronic cash and mobile payments systems during March and April this year here in Japan has been smooth and without problems (except for PASMO underestimating the success and running out of cards). However, when we look below the surface, clouds of a competitive storm are brewing. This storm might be followed by consolidation. Here are some examples:

PASMO cards were sold out within the first three weeks, and PASMO is now losing market share (and commission payments) to SUICA day-by-day – PASMO became a victim of it’s own success.

Seven-Eleven’s nanaco and AEON’s WAON use different business model variations

7-11’s “nanaco” offers twice as much discount as AEON Group’s “WAON”. Clearly “nanaco” is on a more aggressive course than “WAON”. We expect competition to heat up.

By the way- on Wednesday April 25th, 2007, two days after Seven-Eleven’s national roll-out of their e-money and mobile payment system, our company Eurotechnology Japan KK arranged a meeting between Seven-Eleven’s Chief e-Money architect and manager with the top-management of one of Europe’s most important mobile operators to enable the European operator to almost live experience an important global mile-stone in the development of e-money and mobile payments. To this day, to our knowledge, there is nothing like Seven-Eleven’s nanaco e-money and mobile payments system in Europe.

E-cash business model schematics

Schematic of Seven-Eleven’s nanaco e-money and mobile payment system
Schematic of Seven-Eleven’s nanaco e-money and mobile payment system

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