ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print

Japan shoppers ditch cash and embrace e-money for tax breaks

Convenience stores see 50-60% surge in mobile transactions after Oct.1 hike

Perks offered by convenience chains gave a big boost to cashless payments in early October. (Photo by Maho Obata)

TOKYO -- Shoppers in Japan are quickly embracing mobile payments and electronic money after the sales tax hike this month, advancing the push to pay electronically in a country where cold hard cash remains king.

Seeking to cushion the impact of the Oct. 1 tax increase to 10% from 8%, the government rolled out the same day a nine-month reward points program aimed at smaller retailers. Customers earn either 2% or 5% of their noncash purchases, including credit card payments, in shopping points. As of its launch, the program was available at roughly half a million shops nationwide.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more