Japan’s Digital Wallet

Is it possible to make Japan a cashless society?

In theory, a cashless world could be achieved in Japan.

ATM in Japan

Japan already has six main competing cashless payment systems. Many of them are embedded into mobile phones. In fact, it is suggested that there are about 120 million cashless payment chips sitting in Japan’s wallets and handbags, waiting to be swiped.

Can Japan become a cashless society? And if so will this fight the problem of deflation?

Unorthodox, untried and, said one Bank of Tokyo Mitsubishi strategist, “in the realms of economic science fiction”, the recommendation has nevertheless begun floating around Tokyo’s corridors of power and economists have described Japan as particularly suitable as a testing ground.

But, despite this, Japan remains a consumer society that culturally is attached to use of cash. Classic blog on Japan, Cash Based Society provides insight into this!

Currency in circulation is about 16 per cent of its GDP, compared with the levels of 2 to 3 per cent in most developed countries.

This clip from the BBC explains how the cashless society might work. What will it mean for Japan? What will it mean for those countries that can go to a cashless society and those that cannot?