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mobile payment

M-payments and e-money grow exponentially

1 Billion e-money transactions/month around 2014

Exponential growth: The number of e-cash payments per month increases by a factor of 10 about every 4 years

E-money transactions (including mobile e-cash) grow exponentially in Japan, and we expect to see 1 Billion e-money transactions/month around 2014 (this figure would be much bigger if contactless train travel tickets were included). e-Money now represents about 2% of all cash (banknotes + coins) in circulation in Japan, a recent examination of e-money by the Bank of Japan shows. More below, and a detailed analysis in our mobile payment and e-money report, where we combine the newest data from the Bank of Japan with our own research data.

Exponential growth: The number of e-cash payments per month increases by a factor of 10 about every 4 years

We expect 1 billion e-money transactions per month around 2014. Green curve shows payments with Suica, Pasmo and Edy (not including train travel). The blue curve shows data for all e-money transactions researched by the Bank of Japan.

Total number of e-money transactions in Japan per month
Total number of e-money transactions in Japan per month

Research by the Bank of Japan shows that e-money has reached the level of 2% of all cash in circulation (bank notes and coins).

e-Money as a percentage of total money in Japan
e-Money as a percentage of total money in Japan

To know more – and to find detailed statistical data: read our mobile payment reports

Mobile payments in Japan vs Apple Pay

https://www.cnbc.com/video/2014/09/16/why-apple-pay-isnt-as-revolutionary-as-it-seems.html

Mobile payment Japan, e-money and mobile credit report:

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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·

Categories
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·

Categories
mobile payment

NFC prepaid fare cards are Nikkei Marketing Journals most popular product of the year 2006

Annual Nikkei Marketing Journal (NMJ) ranking list of most successful products

NFC prepaid fare cards ranked near the top of most popular products for 2006

Every year Nikkei Marketing Journal publishes a ranking list of the most successful products of the past year in the form Sumo wrestling results are traditionally displayed: there is a Western side and an Eastern side, winners at the top are displayed in much larger print than also rans at the bottom as in Sumo rankings.

IC tickets are the “Ooseki” (second place) winners on the Eastern side of the Sumo ranking of hit products for 2006.

On March 18, 2007, more than 100 transportation companies of the Tokyo region including 25 train operators which serve a population of around 30 million will introduce PASMO IC-Tickets. Introduction of PASMO will increase market share for IC-tickets and ecash in Japan – and globally.

Read more in the latest edition of our Suica and RFID-Ticket report.

RFID tickets such as SUICA make it to the top of the NIKKEI marketing ranking list in 2006
RFID tickets such as SUICA make it to the top of the NIKKEI marketing ranking list in 2006

Mobile payments Japan, e-money and mobile credit (200 pages, pdf file):

Copyright 2006-2013 Eurotechnology Japan KK All Rights Reserved

Categories
mobile payment

PASMO: IC cards for transport

On March 18, 2007, more than 100 transportation companies (26 railway companies and 75 bus companies) – moving 30 million people of the Tokyo region – will switch to the IC card ticketing and e-cash system named “PASMO”. PASMO will interoperate and partially compete with SUICA.

Preparations go back more than 20 years, when Japan’s national railways started research on IC cards for ticketing. SUICA IC-card tickets were introduced commercially in November 2001 at 424 JR-EAST rail stations in the Tokyo region.

Tokyo’s PASMO combined with SUICA is likely to develop into one of the world’s biggest electronic payment and e-cash systems.

PASMO RFID fare card for the Tokyo region
PASMO RFID fare card for the Tokyo region

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