I like writing but am no writer, so I prescribe to the ‘if you’re not a sharpshooter shoot lots of bullets’ school of wannabes. When the Financial Times, “The painful path of curing Japan of its cash addiction” (paywalled) piece came out, I had 2 hours to kill before going on a business trip and decided to post something while my reaction was fresh, figuring nobody would read it. The piece has not gotten many hits, but a few western journalists based in Tokyo tweeted about it recently, defending the FT piece and the overall ‘Japan failed’ game over narrative.
Here’s the thing. The cashless payments market landscape in Japan is the most messy and exciting one in the world right now. Nowhere else can you find such a concentrated investment in contactless payment infrastructure and different technologies (EMV, FeliCa, QR Codes, smartphones, etc.) competing and playing out in the market.
Japan is also the world’s great guinea pig test market. What works here first is adapted and deployed in other markets, like mobile payments. My take, covered in countless messy posts over the span of 2 years, is actually quite simple. The market revolution of mobile payments and smartphones is just getting started. The hot messy exciting payments situation you see happening in Japan right now will play out, in some other form, in other markets later.
That’s the story I think western journalists are missing. The ‘game over’ Japan narrative has been a stock western journalist in Japan ploy since the end of the Japan bubble, almost 30 years ago. A lot of journalists stick with it because it still sells. It’s entertaining for some people, but it doesn’t convey reality or educate.
JR East getting NFC-F added to the NFC Forum certification process and getting Apple to add global FeliCa to every iPhone and Apple Watch, to me, is an interesting story. Google following Apple’s lead and adding that same capability to every Pixel 3 device (but only turning it on for the JP market), to me, is an interesting story. It tells us where Apple and Google are going.
Our smart devices are quickly evolving into ‘do everything’ devices that, unlike plastic, don’t care about any particular payment technology. They just work. That’s where the puck is going. If you sit around declaring that the game is over, you’re gonna miss the game. And the opportunity to tell people about it.
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