(by Didi Rankovic | Claim the Network) – If all goes according to plan, by the spring of next year, Japanese companies will be able to use a system to pay salaries digitally, bypassing bank accounts and using payment apps.
This is the Japanese government’s plan that shows the country is trying to catch up with others in Asia when it comes to moving towards a cashless society, says an article published on the World Economic Forum (WEF) website. .
Japan’s stated goals of introducing a digital wage payment system are to help foreign workers who cannot open a bank account in the country, as well as boost growth, the financial services market and deregulation, and reduce administrative fees , the blog post says.
The broader and strategic context of Japan’s push in the direction of the cashless society appears to be an attempt to address the problem of labor shortages, among others such as productivity and “revitalization regional”.
According to official sources, cashless payments in Japan stood at 32.5 percent in 2021, compared to 13.2 percent just a year earlier, but it is still considered “low and slow” compared to countries such as South Korea, China and Singapore where these figures were 93.6%, 83% and 60.4%.
So far, there doesn’t seem to be much enthusiasm for adopting the latter scheme among Japanese companies surveyed by Works Human Intelligence. Of the 247 companies that participated, less than 30 percent said they are considering or will consider using this type of salary payment, citing operational costs as the main reason.
Japan has long been trying to implement its “Cashless Vision” policy, first launched in 2018 by the Ministry of Economy, Trade and Industry. The plan set out in this strategy aims to bring the level of cashless transactions to 40 percent by 2025 and double that number in the future.
The country also has what is called the Cashless Promotion Council, also created in 2018. The council supports initiatives that lead to the goal, and is made up of representatives from the government and the private sector, as well as the education and research.
Opposition to cashless society policies includes privacy violations, security risks at the individual and state level, and reliance on technology for financial inclusion.