QR code based payments next up for Japanese banking coalition

QR code based payments - Yen symbol

A new quick response code system for mobile transactions will be ready by the end of March.

A Japanese megabank coalition is moving forward with a new QR code based payments system. The system will be ready by the end of March. That said, the whole thing won’t roll out until the 2019 fiscal year.

The coalition is composed of three very large and powerful banks headquartered in the country.

The three banks making up the coalition are Sumitomo Mitsui Financial Group, Mizuho Financial Group, and Mitsubishi UFJ Financial Group. They have worked together to develop the QR code based payments system.

The coalition is said to be working jointly with a third party they have financed together. T hat third party is responsible for overseeing the system as a whole. Moreover, the third party will also be responsible for inviting other banks to take part when the time comes. This invitation will include small and large banks alike.

The QR code based payments system will help to move the country closer to becoming cashless.

In Japan, 65 percent of all transactions are conducted in cash. This is a surprising figure considering how widely the Japanese culture embraces technology. That said, the banks see a considerable opportunity for bringing mainstream mobile payments into this industrialized, developed country.

The goal of the quick response codes is to improve efficiency in an affordable way. The combination of QR codes and cashless transactions can help bank operation efficiency. Equally, since QR codes are quick and inexpensive to use, retailers can keep their transaction costs down.

Customers may also enjoy the opportunity for more payment transaction type choices. This convenience may appeal to shoppers enough that the mobile payments may generate more repeat business. A mobile payments system may also reduce the considerable expenses related to transacting about $18.74 billion in cash payments every year.

The QR code based payments aren’t anything the world hasn’t seen before. That said, they have not rolled out on a broad scale in Japan. There are already mobile payments services available in the country. Furthermore, some large programs, including those based on quick response codes, are also on their way very soon. Most notable is the NTT Docomo option which will roll out in a few weeks.

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