DOCSLIB.ORG

Electronic Money Trends As Revealed by a Consumer Survey Vol.66 (10.December.2009) Electronic Money Trends As Revealed by a Consumer Survey

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Electronic Money Trends As Revealed by a Consumer Survey Vol.66 (10.December.2009) Electronic Money Trends As Revealed by a Consumer Survey lakyara 2009Kyara, which means “precious” in ancient Japanese, is an aromatic resin regarded as the highest quality of all agarwood. “lakyara [la-kæ´la]” aims to deliver the same quality as Kyara together with NRI’s endeavour for continuous excellence and innovation to provide the most advanced and up-to-date information to our readers worldwide. vol.66 (10.December.2009) Electronic money trends as revealed by a consumer survey vol.66 (10.December.2009) Electronic money trends as revealed by a consumer survey Electronic money is gaining prevalence as a means of payment. With e-money ownership and usage rising in Japan's five largest metropolitan areas, the keys to further growth in usage are capturing women users and pairing e-money with other types of cards. Electronic money has gained Exhibit 1. Electronic money ownership and usage rates mass prevalence (%) 90 82.8% Electronic money enables Japanese consumers to 80 70 purchase goods and services using a mobile phone or 61.4% 60 56.5% non-contact smartcard (e.g., Edy, Suica). With over 100 51.5% 51.8% 50 47.4% million such cards now issued, e-money is said to have 42.9% 38.8% achieved universal acceptance. According to a Bank of 40 34.0% 35.9% Japan survey published in July 2009 (Developments in 30 Electronic Money in Japan During Fiscal 2008), over 100 20 million e-money transactions with an aggregate value of 10 0 some ¥800 billion took place in fiscal 2008. Fiscal 2008 Sapporo Greater Tokyo Tokai Kinki Fukuoka transaction volume increased 40% from fiscal 2007 in both (n=250) (n=1,000) (n=250) (n=500) (n=250) Percentage of respondents that have e-money unit and value terms. Percentage of respondents that use e-money Source: NRI's Third Electronic Money Survey Against such a backdrop of growth in e-money usage, NRI conducted its third Electronic Money1) Survey. Specifically, we surveyed 2,250 adult (aged 18 or older) residents of five major metropolitan areas (Sapporo, Greater Tokyo, Sharp increase in average expenditure Tokai, Kinki, and Fukuoka Prefecture)2). per "main e-money" transaction Survey respondents with e-money cards have an average Electronic money ownership of 2.4 such cards. The survey queried respondents with and usage frequency have risen e-money about their usage of their "main e-money" (i.e., the e-money brand that they use most frequently for In Greater Tokyo, 82.8% of survey respondents have a routine purchases). We found that the average e-money card (or mobile phone) with e-money functionality, as do user makes 7.0 e-money purchases per month with an more than half of the respondents in Kinki (56.5%) and average value of ¥900 per purchase4). Average usage Fukuoka (51.8%). In Tokai, the corresponding percentage frequency was nearly unchanged from last year's average was 42.9%, a 6.9 point increase from the year-earlier of 7.2 times per month, but the average expenditure per survey. In Sapporo, which was surveyed for the first time transaction rose 19% from approximately ¥750 last year, this year, respondents’ e-money ownership rate was partly by virtue of increased acceptance of e-money 61.4%. The percentage of respondents in Greater Tokyo among merchants and growth in issuance of retailer- that own e-money and use it for purchases3) was 51.1%, affiliated e-money cards. above 50% for the first time since the survey's inception. This usage rate increased in all four metropolitan areas for which year-earlier data were available, suggesting that e-money is gaining prevalence as a means of payment (Exhibit 1). ©2009 Nomura Research Institute, Ltd. All Rights Reserved. 2 04 vol.66 (10.December.2009) Electronic money trends as revealed by a consumer survey Key to growth is capturing female Exhibit 3. Average monthly expenditures by type of "main users and dual functionality e-money" classified by paired functionality 0 20 40 60 80 100 (%) Analysis of e-money usage by users' demographic e-money paired with credit card or 9.5 22.2 19.4 21.3 18.4 6.2 3.0 attributes revealed that average expenditure per "main bank ATM card(n=210) 2.1 e-money" transaction was higher for female users than e-money paired with retailer's male users and increased with age among both males and membership or loyalty point card 15.9 25.9 21.0 15.6 17.5 1.9 (excluding airline mileage cards) (n=178) females (Exhibit 2). 0.9 e-money paired with airline mileage card or hybrid mileage/credit card (excluding 23.8 22.0 19.3 19.7 8.9 5.4 regular credit cards and ATM cards) (n=123) e-money integrated into a mobile phone 1.3 Exhibit 2. Average expenditure per "main e-money" (excluding mobile phones in which 22.9 26.0 13.8 21.9 12.7 1.4 transaction by gender and age group e-money is paired with mileage or loyalty point functionality) (n=189) 1.2 (yen) e-money card with no paired 33.9 26.2 11.7 17.8 5.0 4.1 1,200 1,166 functionality(n=283) 992 1,000 Less than ¥1,000 ¥1,000 - 2,999 ¥3,000 - 4,999 895 824 ¥5,000 - 9,999 ¥10,000 - 29,999 ¥30,000 or above 800 Not known 639 640 Source: NRI's Third Electronic Money Survey 600 400 200 Infrastructure sharing is the way to profitability 0 18 - 29 30 - 49 50 and older 18 - 29 30 - 49 50 and older (n=117) (n=211) (n=204) (n=86) (n=182) (n=185) Now that e-money has gained prominence as a means Males Females of payment, the total e-money transaction volume is Source: NRI's Third Electronic Money Survey projected to surpass ¥1 trillion in fiscal 2009. Despite the market’s growth, earnings per e-money brand are still With growth in usage frequency stagnating, capturing meager. A number of issues remain to be resolved for the support of female users with their higher average e-money to emerge as a profitable business on a stand- expenditure per transaction is the key to market growth. alone basis. Additionally, analysis of e-money usage by type of The immediate issue is how to increase usership by "main e-money" revealed that the type of e-money with enhancing convenience, boosting recognition, and/or the highest average monthly expenditures is e-money expanding the network of merchants that accept e-money. integrated with a credit card or financial institution's ATM From a medium- to long-term perspective, sharing of card. Conversely, the type with the lowest average monthly infrastructure is essential. Currently, there are several expenditures is simplex e-money not paired with any other standards in use for the terminals that process e-money function (Exhibit 3). transactions. This diversity imposes a heavy hardware cost burden on e-money issuers. Meanwhile, point-of- We surmise that combining e-money with another function sale adaptation, terminal installation, and the hassle (e.g., credit card, Airline mileage) is an effective means of of processing e-money transactions are impediments promoting e-money usage. to cultivating a merchant network. To resolve these difficulties, e-money issuers need to share terminals and networks. Issuers' progress toward establishing e-money as a mass-market cashless payment technology will continue to bear close monitoring. ©2009 Nomura Research Institute, Ltd. All Rights Reserved. 3 04 vol.66 (10.December.2009) Electronic money trends as revealed by a consumer survey Note 1) The survey covered the following 18 brands of electronic money: Edy, Suica, PASMO, ICOCA, PiTaPa, TOICA, nimoca, SUGOCA, Kitaka, SAPICA, nanaco, WAON, iD, QUICPay, Smartplus/VisaTouch, PayPass, JAL IC Coupon, and taspo/Pidel. 2) NRI's Third Electronic Money Survey was conducted on June 12 –16, 2009. A total of 2,250 adult (age 18 and older) residents of the five regions named below were surveyed using NRI's TrueNavi Internet research service (survey responses were tabulated by gender and decennary age brackets). Numbers of survey respondents by region were as follows: 250 from Sapporo (Sapporo City), 1,000 from Greater Tokyo (Tokyo Metropolis, Kanagawa Prefecture, Chiba Prefecture, and Saitama Prefecture), 250 from Tokai (Aichi Prefecture, Mie Prefecture, and Gifu Prefecture), 500 from Kinki (Osaka Prefecture, Kyoto Prefecture, Hyogo Prefecture, and Nara Prefecture, and 250 from Fukuoka (Fukuoka Prefecture). 3) Usage as a commuter pass or to pay train/bus fare was not counted as a purchase. In Exhibit 1, usage rates were calculated by dividing the number of active users by the total number of respondents in each region, including respondents that do not posses e-money. 4) For average expenditure per transaction, response tallies were adjusted by weighting them so that the samples collected from the surveyed metropolitan areas coincided with the metropolitan areas’ respective population distributions by gender and decennary age bracket based on the 2005 National Census. Author's Profile Ai Kawano Consultant Financial Business Consulting Department II E-mail : [email protected] The entire content of this report is subject to copyright with all rights reserved. The report is provided solely for informational purposes for our UK and USA readers and is not to be construed as providing advice, recommendations, endorsements, representations or warranties of any kind whatsoever. Whilst every effort has been taken to ensure the accuracy of the information, NRI shall have no liability for any loss or damage arising directly or indirectly from the use of the information contained in this report.
Load more

Recommended publications
  • Annual Report2009(5.97MB)
    Annual Report 2009 Perfecting Our Formula for Success FamilyMart Basic Principles Our Slogan “FamilyMart, Where You Are One of the Family” Our mission is to always be close to our customers’ hearts, and an indispensable part of their lives. FamilyMart’s Goal We aim to make our customers’ lives more comfortable and enjoyable, primarily by displaying hospitality in everything we do, and by ensuring a shopping experience characterized by convenience, friendliness and fun. FamilyMart’s Basic Management Policies We will continue to provide innovative, high-quality products and services that make a positive, lasting impression on our customers and warm their hearts. We are working to raise enterprise value through our business activities in line with the spirit of “Co-Growing,” by which we mean realizing mutually beneficial relationships with our franchisees, business partners, and employees, and thereby fulfilling our responsibilities to all our stakeholders. We aim to win the highest trust of the general public by observing all laws and ethical norms, raising the level of transparency in our business activities, and always upholding the principles of fair competition. In consideration of the overriding need for environmental preservation, we will enthusiastically contribute to the welfare of the local communities in which we operate and society as a whole, providing reliable and safe products and services to help realize a future full of new possibilities. We encourage our colleagues to create a vibrant corporate culture by keeping abreast of social trends and showing an interest in a wide range of subjects. In this way, we are confident that our staff will hit upon good ideas and then act on them.
    [Show full text]
  • Small Payment Business in Japan
    Small Payment Business in Japan 2009 February 10 Nomura Research Institute, Ltd. Consulting Sector Financial Business Consulting Department Hiromichi Yasuoka (Senior Consultant) 〒 100-0005 Marunouchi Kitaguchi Building, 1-6-5 Marunouchi, Chiyoda-ku, Tokyo 100-0005, Japan Contents Preface Overview of the small payment market Small payments: Legal system and issues Small payment businesses using "Osaifu-keitai" Future potential (globalization, use of OpenID) Summary Copyright（C） 2009 Nomura Research Institute, Ltd. All rights reserved. 1 Preface E-money has achieved widespread use in the Japanese small payment market. There are particular merits for enterprises that combine small payment services with their core businesses. Credit cards are an instrument of settling large payments, while e-money is used to settle small payments. While it is difficult for enterprises to earn profits just from e-money services, enterprises that already have large customer bases may see benefits from combining e-money services with their core businesses. Difficult for e-money to earn profits on its own Primary instruments by payment amount Average usage value is only about 700 to 750 yen per Overview of Amount of Money transaction, requiring extremely large transaction volumes in order to earn profits just on commissions e-money usage and Expenditures are large: systems operations, assistance market to merchants installing terminals, call center operations (P. 3-6) Large Credit card etc. About 5,000 Yen Potential benefits from combination with core business Middle Cash Common: Access to detailed customer behavior data E-money About 1,000 Yen Railways: Ticket gate maintenance cost savings benefits and Retail: Shorter checkout times because cash is not used partnerships E-money (P.
    [Show full text]
  • Suica‐Smart Card Payment System ・ ③ Smart Station Lab
    World Usability Day 2012 ICT-based service in public transportation Nov./8/2012 Takeshi NAKAGAWA Frontier Service Development Lab. East Japan Railway Company Agenda ・ ① JR East & FS Lab. Overview ・ ②Suica‐Smart Card Payment System ・ ③ Smart Station Lab. & The latest R&D activities ・ Yamanote-line Trainnet ・ Tokyo Station JR x AR ・ Kamishirube ① East Japan Railway Company & FS Lab. JR East Overview Privatized on April 1st, in 1987 Japan National Railway was divided 6 passenger railway companies JR Hokkaido 1 freight railway company JR East is… JR East Employees 52,076 Group Revenues 2011 $30 billion Stations 1,689 ( Shinkansen 35 ) Railway Lines 70 ( Shinkansen 3 ) JR West Passengers Served Daily 16 million Population of Operating Area 59 million( 125million in Japan ) JR Central JR Shikoku JR Kyushu Transportation ‐ Commuter Train- 5 Transportation -Shinkansen- HAYABUSA was debut! In March, 2011 Max speed is 320km/h = 200 mile/h Harnessing state-of-the art technology and an aim to achieve 320km/h, the fastest operational speed in Japan Lifestyle Business Ad business 7 IT-Suica Business Suica(Smart Card) Business Credit Card Size WiMAX + Wi-Fi Service 8 LCD Display New, Weather, Flight, Ad WIMAX Antenna LCD Display WiMAX-WiFi CMS server R&D Center of JR East Group R&D Center was established on Dec./1st/2001 Aiming toward the construction of a new railway system Frontier Service Development Lab. Advanced Railway System Development Center Safety Research Lab. Disaster Prevention Research Lab. Technical Center Environmental Engineering Research Lab. 2012/12/17 Copyright 2010 Frontier Service Development Lab. All rights reserved. 9 Information Design Group Aiming for easy-to-understand information provision to customers by using Information Communication Technology ② Suica ‐ Smart Card Payment System - Railway in Japan Basic Process on riding train Check a fare Buy Ticket gate onboard gate Fare depends on distance.
    [Show full text]
  • How to Expand Vending Machines Into the World Make Vending Machine Be a Good Seller Gunma Chuo Secondary School 5101 Taichi Arikawa
    How to expand vending machines into the world Make vending machine be a good seller Gunma Chuo Secondary School 5101 Taichi Arikawa Abstract Now there are about 5 million vending machines in Japan. They are already enough in Japan, so wasteful machines are being cut. Then I think that market o f vending machines moves abroad, therefore I devised vending machines from viewpoints of increasing sales and place so that they could sell well in the world. As a result, I suggest “to put main products into the lower left space of vending machines showcase”, ”to put where people stay for a long time”, “to spread in international events”, and so on. Although vending machines can solve problems of language and labor shortage, to spread them may cause appearances of the unemployed. I have to examine where to put vending machines more carefully. 1 Introduction We often see many vending machines in our daily lives. These days we come to see vending machines which consider environment like “peak-shift vending machines”. Then I became interested in vending machines and wondered how their market is going to be, so I checked the number of vending machines in Japan and in foreign countries. After that, I found that there is the downward tendency of the number in Japan and there is upward tendency of it in foreign countries. Now vending machines are diversifying and becoming one of the Japanese cultures. Some vending machines have AED or Free Vend Service which can offer drinks for free in emergency. Besides, it is a big advantage that vending machines can be used in foreign countries easily by changing language of labels.
    [Show full text]
  • Annual Report 2009 Fiscal Year Ended February 28, 2009 Profile Who We Are
    Fully Global, Truly Local Annual Report 2009 Fiscal year ended February 28, 2009 Profile Who we are... Aeon* is a group of 155 companies united by a strong management base that supports comprehensive retail operations through global benchmark retailing and logistics processes. With shopping centers at its core, the Group operates lifestyle-enhancing retail and entertainment services, from general merchandise stores and supermarkets, to fashion-conscious specialty stores, financial services and amusement facilities. Whether in our home market of Japan or in a rapidly growing network in China and Southeast Asia, Aeon stores, goods and services are characterized by local-level customer and community partnerships—driven by a centuries-long commitment to total customer satisfaction. Note: “Aeon” or “the Group” refers to the pure holding company Aeon Co., Ltd. and its 154 subsidiaries. Entering a new stage and a new level of Customer Focus CONTENTS Operational highlights 02 Financial highlights 04 A message from the Chairman 06 An interview with the President 08 Focus: GMS reforms 14 Focus: Pricing strategy 16 Focus: Financial strategy 18 Review of operations 20 Environmental and social activities 28 Board of directors and executive officers 33 Corporate governance 34 Financial section 39 Corporate history 82 Major Group companies 87 Shareholder information 87 Where we are going... Aeon became a pure holding company in August 2008, Entering a new stage and a new level of Customer Focus heralding a new growth-oriented business model based on selective centralization and delegation of management for optimum efficiency and maximum customer focus. Aeon’s growth from handcart to international retailing group was predicated on a thoroughly consistent commitment to the Customer-First philosophy.
    [Show full text]
  • Annual Report2010(10.8MB)
    Annual Report 2010 FamilyMart Basic Principles Our Slogan “FamilyMart, Where You Are One of the Family” Our mission is to always be close to our customers’ hearts, and an indispensable part of their lives. FamilyMart’s Goal We aim to make our customers’ lives more comfortable and enjoyable, primarily by displaying hospitality in everything we do, and by ensuring a shopping experience characterized by convenience, friendliness and fun. FamilyMart’s Basic Management Policies We will continue to provide innovative, high-quality products and services that make a positive, lasting impression on our customers and warm their hearts. We are working to raise enterprise value through our business activities in line with the spirit of “Co-Growing,” by which we mean realizing mutually beneficial relationships with our franchisees, business partners, and employees, thereby fulfilling our responsibilities to all our stakeholders. FamilyMart’s Action Guidelines We aim to win the highest trust of the general public by observing all laws and ethical norms, raising the level of transparency in our business activities, and always upholding the principles of fair competition. “Famimaship” In consideration of the overriding need for environmental preservation, we will enthusiastically contribute to the welfare of the local communities “Listen, Decide, Act” in which we operate and society as a whole, providing reliable and safe products and services to help realize a future full of new possibilities. “Wholehearted Hospitality” We encourage our colleagues to create a vibrant corporate culture Exceeding customers’ expectations by keeping abreast of social trends and showing an interest Growing together, through mutual trust in a wide range of subjects.
    [Show full text]
  • Full-Text (PDF)
    African Journal of Marketing Management Vol. 4(4), pp. 130-151, April 2012 Available online at http://www.academicjournals.org/AJMM DOI: 10.5897/AJMM12.020 ISSN 2141-2421 ©2012 Academic Journals Full Length Research Paper Analysis of consumer attitudes towards integrated circuit (IC) cards Yasuo Ishii 1*, Yuki Higuchi 2, and Kazuhiro Takeyasu 2 1Department of Management Design, Osaka International University, 3-50-1, Sugi, Hirakata, Osaka 573-0192, Japan. 2Osaka Prefecture University, 1-1 Gakuenchou, Sakai, Osaka-fu 599-8531, Japan. Accepted 28 October, 2011 This paper analyzes the attitudes of consumers towards integrated circuit (IC) cards, which has a big influence on the buying behavior of consumers. For this purpose, we created a questionnaire survey of using IC card on purchasing, and we utilized the text mining method. In reviewing past researches, some related researches were used, but the analyses were based on simple accumulation, though there have been a few investigations on this. The purpose of this survey is to examine the attitudes of consumers to the convenience and need of purchasing with IC card. Additionally, this survey seeks to clarify the general opinions of consumers concerning an IC card system. Moreover, this survey strives to learn about consumers’ awareness of the IC card system, their expectations for the IC card system, and the information they need. Some interesting and instructive results were obtained. These were utilized for constructing a much more effective and useful IC card system. Key words: Integrated circuit (IC), consumers, key graph, electronic money, attitudes. INTRODUCTION Electronic money usage is widespread at the present Suica and Edy which were easier to issue from 2001.
    [Show full text]
  • NFC Tag LSI Application Note Version 1.5
    NFC Tag LSI Application Note Version 1.5 NFC Tag LSI Application Note Version 1.5 NFC Tag LSI Application Note Version 1.5 Trademark Usage •Wi-Fi is a registered trademark of the Wi-Fi Alliance. •Bluetooth is a registered trademark of the Bluetooth SIC, Inc. •FeliCa is a trademark of Sony Corporation. •FeliCa is the contactless IC card technology developed by Sony Corporation. •Windows is a registered trademark of Microsoft Corporation in the United States and other countries. •Android is a trademark of Google Inc. ･Eclipse is a trademark of Eclipse Foundation, Inc. •MIFARE is a trademark of NXP Semiconductors. •Osaifu-Keitai is a trademark or registered trademark of NTT DOCOMO, INC. in Japan and/or other countries. •'taspo' is a registered trademark of the Tobacco Institute of Japan. •Suica is a registered trademark of East Japan Railway Company. •Edy is a registered trademark of Rakuten Edy, Inc. •All other trademarks are the property of their respective owners. NFC Tag LSI Application Note Version 1.5 Contents(1/2) Chapter 1 Introduction 1.1 Purpose ……………………… P4 1.2 Organization ……………………… P4 Chapter 2 About NFC Tag LSI 2.1 Overview ……………………… P5 2.2 Key Applications ……………………… P5 2.3 List of Specifications ……………………… P6 2.4 Features ……………………… P6 2.4.1 Three Communication Modes ……………………… P6 2.4.1.1 RF Communication Mode ……………………… P7 2.4.1.2 Serial Communication Mode ……………………… P7 2.4.1.3 Tunnel Communication Mode ……………………… P7 2.4.2 Functionality to Reduce Power and Utilize Interfaces Flexibly ... P8 2.4.2.1 Batteryless Communication ………………………
    [Show full text]
  • Corporate Citizenship Report 2009
    Corporate Citizenship Report 2009 “Happiness and Harmony in Our Community” LALAWSONWSON Genki Plan With the downturn in the global economy and other concerns, people in Japan are finding it increasingly difficult to be optimistic about the future. It was to give people and local communities a lift in these difficult times that we launched our LAWSON Genki Plan as the “Hot Station in the Neighborhood.” The first step to such a goal is to ensure that our employees and store personnel are cheerful and positive, and to create clean, bright stores that provide the products and information that people are looking for. It is our hope that these efforts will bring cheer to our customers and breathe new life into the neighborhoods in which we operate. We consider it to be our social responsibility to give people a reason to smile. LAWSON Genki Plan logo Cooperate Philosophy “Happiness and Harmony in Our Community” Code of Conduct Acting with utmost consideration for others Challenging with innovative ideas and actions Having a strong will to attain the objectives 1 LAWSON Genki Plan CONTENTS LAWSON Genki Plan/ Cooperate Philosophy, Code of Conduct 01 Our Commitment 03 LAWSON Stores: Environmental Protection and Corporate Citizenship Activities 05 LAWSONGenki Plan Caring for Our Planet LAWSON is committed to Special Feature 1: Store of the Future 07 operating eco-friendly, people- Special Feature 2: Working with Customers for the Environment 09 friendly stores as the “`Hot´ Stations in the Neighborhood” LAWSON’s Commitment to the Environment 11 while aiming to address Measures to Reduce Energy Consumption 13 environmental issues.
    [Show full text]
  • All Together Now: Electronic Money Goes Mobile in Japan
    All Together Now: Electronic Money Goes Mobile in Japan In Japan, cash has long been the preferred method of payment for most transactions. Traditional credit and debit cards have been slow to catch on among the Japanese, and even today it is not unusual to see a purchase worth thousands of dollars paid for in hard cash at Japanese retail stores. However, the long reign in Japan of cash as king appears to be nearing an end, as consumers here move increasingly toward different types of electronic money and payment methods. Cashless Commuting Currently, the most visible use of electronic payment in Japan comes in the form of a rechargeable smart card called a ‘Suica’ card. Originally introduced by JR East Railways in November 2001, Suica cards are used primarily as prepaid fare cards on train lines and (more recently) buses. In addition, newer versions of the cards can also be used to make purchases from vending machines, kiosks and convenience stores in and around the stations. As of February 2008, there were 23.7 million Suica cards in circulation. Suica cards are contactless RFID cards, allowing the carrier to pass through the ticketing gates simply by waving the card in the vicinity of the built-in card reader. The card can also be read without having to remove it from a wallet or bag. The balance is displayed at the ticket gate, and a record of all travel is stored on the card. This convenience, along with the speed and accuracy of the readers installed in the ticket gates, has been widely credited for the rapid adoption of Suica throughout Tokyo.
    [Show full text]