Japanese banks team up on mobile payments

Mitsubishi UFJ Financial Group, Mizuho Financial Group and Sumitomo Mitsui Financial Group will work out specific plans by the end of March 2018 to unify QR code specifications across participating banks. The rollout of the payment system is slated for fiscal 2019. The banks are aiming to promote cashless transactions already widespread in China and elsewhere. 

The three banks are also looking at establishing a jointly financed company to oversee the system. Other large banks and smaller regional banks will be invited to join. Cashless payments will greatly streamline bank operations while the use of QR codes will keep costs minimal for retail outlets that adopt the system. Japan is currently behind other countries when it comes to e-payments.

The US-based Boston Consulting Group says 65% of payments in Japan are settled with cash, double the average for developed nations. Credit cards are used in less than 20% of settlements. Meanwhile, Bank of Japan estimates show 77% of Kenyan cellphone customers use mobile payments. The number jumps to 98% in Chinese urban areas.