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

Copyright·©2013 ·Eurotechnology Japan KK·All Rights Reserved·

mobile payment

PASMO: IC cards for transport

On Sunday, March 18, 2007, about 100 transportation companies in the Tokyo region switched to the near-field electronic money and payment system PASMO. Electronic money is a new battle field which JR-East pioneered with SUICA. Seven & I is still to throw it’s weight into the battle – read about today’s status of the electronic money marketplace in our “Mobile Payment and Keitai Credit” report.

A new multi-billion dollar power? Here is the character for PASMO: with an antenna on the hat, a pocket on the chest to store PASMO away, and wheels on the shoes, and in cherry-blossom pink… Does this cherry-blossom-pink guy look like he represents a new US$ multi-billion economic power?

PASMO - near field smart card for fare payment in Tokyo region
PASMO – near field smart card for fare payment in Tokyo region – started Sunday, March 18, 2007 and exceeded all expectations

Copyright·©2013 ·Eurotechnology Japan KK·All Rights Reserved·