Japan’s Payments Systems: Digitisation, Globalisation & Innovation
New paper analyses the payments and settlements landscapes in Japan, compared with global trends, and gives insight into the ongoing development and renewal journey of Japan’s Payment Systems.
Japan has the highest level cash usage among the developed economies in the world. In the years leading to Tokyo hosting the Olympic Games in 2020 Japan has outlined a broad program for change in Japan’s payment industry and payments systems.
This new paper reflects analysis by SWIFT of the current proposals made to improve the Japanese payment ecosystem and draws on SWIFT’s extensive global expertise in payment and settlement system development.
Through this analysis SWIFT has identified areas in Japan’s payment system development that may well benefit from further consideration. Specifically, as Japan Digitises, Globalises and Innovates its payment systems, the Japan payment industry can:
- Consider an open, singular and innovation-oriented ZenginNet system
- Continue to evolve and enhance BOJ-NET cross-border access
- Foster partnerships when regionalising and globalising
- Harmonise local Japan financial messaging standards to global standards
- Further embrace FinTech to realise digital age opportunities
- Ensure Payment System Resiliency
Michael Moon, Head of Payments APAC, SWIFT said: “Payments are at the heart of every commercial transaction and renewal of payment systems and the underlying financial market infrastructure is a constant endeavour. Globally, financial technology is rapidly evolving and innovations focused on banking, payments and payments systems provide great promise in improving banking and payment markets. At the same time the reliability, safety, resiliency and security of the payments industry is extremely important. Japan, its regulators and industry stakeholders, clearly recognise the importance of digitisation, globalisation and innovation in meeting the changing needs and expectations of customers and are very focused on enabling these goals in a safe, reliable and secure manner. At SWIFT we are very excited about these developments and look forward to serving the needs of our customers and stakeholders in Japan.”