Japan Tourism Agency to Launch Cashless Pay

The Japan Tourism Agency plans to introduce a program to promote cashless payments to make holiday spending easier for inbound tourists. Such systems are already in place in some parts of the country.

The Japan Tourism Agency plans to introduce a program to promote cashless payments to make transactions easier for inbound tourists. The Phnom Penh Post reports that such payment systems are already operational at some tourist destinations including the Niseko resort area in Hokkaido.

Under the agency’s program, the government will subsidize launches of cashless systems in tourist areas starting this year. It will also accelerate the installation of free wireless internet and multilingual tourist guides. For both developments, revenue from the international tourist tax, also known as the departure tax, will be used. The tax started earlier this month, the Post reported.

According to the country’s Economy, Trade and Industry Ministry, just 18.4 percent of payments were cashless in 2015, compared to 89.1 percent in South Korea, 60 percent in China and 45 percent in the United States. It can prove frustrating for travelers unaccustomed to using cash to have credit cards refused, and spending by tourists has suffered in response.

“It is vital to develop a payment environment that doesn’t frustrate people,” an agency official said.

Meanwhile, retail stores and tourist attractions and hotels are quickly adopting the Alipay service, which serves some 1 billion consumers worldwide. In Japan, more than 50,000 shops now accept Alipay.

“Since we introduced the Alipay system, inquiries from inbound tourists have increased,” said a business owner in Saitama Prefecture.