Are you tired of carrying cash everywhere you go? Soon, you might not have to. The Japanese government is planning to introduce a new system for companies to pay salaries digitally by spring 2023. This system will allow employees to receive their wages directly, without having to go through traditional bank accounts.
While this might seem like a no-brainer, a recent survey showed that only 30% of companies are considering implementing this system. Japan has been slower than other Asian countries in moving towards a cashless society, but this shift could help change that. In this article, we’ll explore why Japan has been hesitant to embrace digital payments and what this move towards a cashless society means for the future of money in Japan.
Hello convenience!
Japan is gearing up to introduce a new digital payment system for companies to pay wages directly to workers. This new system aims to solve the complicated problems that foreign workers face in Japan, encourage the expansion of the financial services market, and promote growth. Companies will be able to transfer wages to their employees via smartphone payment apps, making the process of receiving payment quick and easy.
Despite the benefits of the new system, a survey by Works Human Intelligence, a leading developer of HR systems, revealed that less than 30% of companies are considering implementing digital wage payment. The survey cited the main obstacles as operational and system costs, as well as the additional hours required to implement the new system. In this article, we will explore the pros and cons of the new payment system, and what it could mean for workers and companies in Japan.
Key points
- Japan aims to become a cashless society and promote growth through digital wage payments.
- The potential benefits include reducing administrative costs and aiding foreign workers.
- However, only 30% of companies are considering adopting the new payment system.
- The government established the Cashless Promotion Council to support the initiative, with the goal of 40% cashless transactions by 2025 and possibly 80% in the future.
- Japan’s percentage of cashless payments is slow compared to other Asian countries.
- Eased COVID-19 restrictions have raised expectations for economic benefits from tourism, where cashless payments are commonly used.
In conclusion, Japan is quickly emerging as a cashless society, and the government is taking measures to promote this trend, with plans to increase cashless transactions to 40% by 2025. The potential benefits of digital payments for wages are significant, but the Works Human Intelligence survey found that operational and system costs, and increasing people hours, are the main barriers to adoption for most companies.
As Japan continues to ease its COVID-19 entry restrictions and opens up to foreign tourists, the convenience of cashless payments has become more important than ever. With other Asian countries already ahead in cashless payments, Japan must act quickly to take advantage of this economic opportunity. The establishment of the Cashless Promotion Council, which brings together the government, educational institutions, research institutes and private companies, is a positive step in the right direction. By working together, Japan can continue to promote the benefits of a cashless society and overcome the obstacles in its way.
