Trends come and go in the retail world, but one which undoubtedly appears to be here to stay is the shift in how consumers now choose to pay for goods and services.
Physical cash has played an important part in retail for decades, but a recent announcement involving South Korean internet firm Naver has put a spotlight on how new payment methods are becoming increasingly common in Japan.
Mobile payments system
Earlier this month it was confirmed that the company has launched a mobile payments system which can be used in Japanese stores. According to the Korea Herald, the Naver Pay service now features a tool known as Cross-Border, which allows people to make payments via a QR code on their smartphone or tablet.
Naver Pay chief Choi Jin-woo told the media outlet that the move was the company’s “first step” into Japan and was based around providing a “convenient service” to customers wherever they are.
While it is thought that the move will help Koreans travelling to the country, the announcement is also arguably another sign of the major changes being seen in how people pay for different items across the world.
Going cashless
A huge number of countries have embraced the idea of going cashless by using new payment methods, with the likes of Canada, Sweden and the UK thought to be among those leading the way.
The types of services which have made the move possible include Google Pay, Apple Pay and, of course, the likes of PayPal. The latter is thought to have a total user base of 277 million accounts, with 255 million of those being consumers.
Many businesses have worked hard to keep up with the consumer appetite for new payment options, and evidence of this can be seen in a range of sectors. For example, Amazon Pay allows people to use payment methods linked to their Amazon account to pay for services on other sites. In addition, this site offering Japanese NetBet casino games gives users a chance to make deposits via a range of means including Neteller, Skrill, Entropay and Trustly. Companies like Subway and Expedia have even flirted with cryptocurrency in the past too.
Set for growth
According to payment technology provider InComm, it is thought that around 20 per cent of all payments in Japan are currently made with methods other than cash, and it is thought that the government is keen to boost this further in the next six years. When did the organization reveal this? In an announcement that it had partnered with DFS to launch barcode payment solutions in the country.
The world of payments is undoubtedly changing, and it will be fascinating to see whether all of the innovations emerging in Japan will ultimately mean the country rises up the rankings when it comes to going cashless. In addition, it will be vital that retailers can stay on top of these trends to ensure they can continue to meet consumer demand.