NFC TIMES Exclusive Insight – Japan’s mobile payments market is expanding, but the talk is not about NFC payments services, such as Apple Pay, Google Pay or the pioneering FeliCa wallet services originally pushed by NTT DoCoMo and rail operator JR East.
Instead a range of payments players are using QR codes and bar codes to try to reduce Japanese consumers’ fondness for cash. The latest to expand their move into payments with QR codes is Japan’s dominant messaging service, Line, which has reportedly agreed to adopt a standardized QR code for payments in Japan with the two giant Chinese wallet providers–Alibaba Group-affiliated Ant Financial and its Alipay wallet, along with Tencent Holdings’ WeChat Pay. In addition, DoCoMo, Japan’s largest mobile operator; and online flea market operator Mercari; have also agreed to adopt the interoperable QR code, according to Nikkei Asian Review.
The standardized QR code would enable merchants to accept payments from any of the five service providers instead of supporting five different QR code applications on their smartphones or tablets or five different printed QR codes. But it doesn’t mean that the services themselves are interoperable. They all have different processors, and for Alipay and WeChat, the users will be Chinese tourists visiting Japan.