Nearly 20% of Japan households using e-money but cash still king

About 18.5 percent of Japanese households said they use electronic money, such as smartphone apps and debit card payments, on shopping trips where ¥1,000 or less is spent. (AFP)
Updated 18 November 2019

Nearly 20% of Japan households using e-money but cash still king

  • About 18.5 percent of Japanese households said they use electronic money, such as smartphone apps and debit card payments
  • Prime Minister Shinzo Abe is pushing to make more Japanese switch to cashless payments

TOKYO: Almost a fifth of Japanese households use electronic money for small purchases, a survey by a central bank-affiliated research institute showed, up from a year ago and a sign the country’s cash-hoarding culture is changing.
In the survey published on Monday and conducted between June and July, 18.5 percent of households said they use electronic money, such as smartphone apps and debit card payments, on shopping trips where ¥1,000 ($9.17) or less is spent, up from 15.4 percent in the previous year.
Among single-person households — 43 percent of whom are in their 20s and 30s — the ratio was much higher at 35.6 percent, suggesting government efforts to prod Japanese to go cashless may be paying off, at least among the younger generation.
Despite the growth in electronic payments, Japan’s “cash-is-king” mentality remains entrenched with the survey showing 84 percent still use notes and coins for small purchases.
And for payments exceeding ¥10,000 and up to ¥50,000, 48.5 percent of households said they pay by cash and 3.4 percent by electronic money, the survey showed.
A low crime rate, years of ultra-low interest rates and a nationwide network of automatic-teller machines (ATMs) have long made cash appealing in Japan, giving people few reasons to shift to cashless payments.
Prime Minister Shinzo Abe is pushing to make more Japanese switch to cashless payments to allow stores to automate sales estimates and banks to cut back on costly ATMs.
Shoppers have recently been encouraged to ditch cash for e-money after the government introduced a rebate program to ease the pain of a sales tax hike on Oct. 1.


Pakistan won’t be blacklisted, makes tremendous progress — Citibank

Updated 30 min 38 sec ago

Pakistan won’t be blacklisted, makes tremendous progress — Citibank

  • Blacklisting is not likely, Pakistan has made great strides, says Nadeem Lodhi
  • Greylisting of Pakistan is a geopolitical issue, according to Citibank

KARACHI: Citibank Pakistan has expressed its confidence that the country would not be further downgraded by the Financial Action Task Force (FATF) on the back of progress it has shown.
“Blacklisting (of Pakistan) is not probability now or any other time,” Nadeem Lodhi, CEO of Citibank Pakistan told journalists at Pakistan Media Roundtable held in Karachi on Monday. 
“Pakistan is making tremendous strides on the list provided by FATF and our regulator is very strong and they have made whatever they have to implement in the financial industry,” he added.
Citibank, which operates in 98 countries and acts as a correspondent bank in Pakistan offering services to corporate and public sector clients – making payments around $4 trillion per day to other banks – says its operations have not been impacted by the greylisting of the country.
“We as a correspondent bank operate on the same alert level (as before greylisting) and it is unchanged for us and business is not impacted or that the business of our client including financial institutions is not impacted,” Lodhi said, explaining that the greylisting of Pakistan is “more of a geopolitical issue.” 
“When Afghanistan is on the white list how can Pakistan be on the grey or black list?” said Moiz Hussain Ali, Citibank Pakistan country treasury and markets head.
In October, the Paris-based FATF expressed concerns with regard to “overall lack of progress” by Pakistan in addressing its terror financing risks, and gave Islamabad time until February 2020 to complete its full action plan or risk further downgrading.
“Should significant and sustainable progress not be made across the full range of its action plan by the next plenary, the FATF will take action, which could include the FATF calling on its members and urging all jurisdictions to advise their FIs (financial institutions) to give special attention to business relations and transactions with Pakistan,” the FATF warned.
Citibank officials say Pakistan may remain on the greylist till the end of the upcoming year.
“The list given to Pakistan is quite long and it is not that you can do it overnight,” Ali said.
He expressed satisfaction with the government’s current economic policies and called for their continuation.
According to the Citibank officials, if the current political regime, where the army and political leadership look united, continues for the next two years, things should improve.
They said that a number of multinationals are planning investment – estimated at $500 million – in various sectors of the economy, ranging from consumer goods to energy.