With less than a year to go until the Tokyo Olympics, Tokyo Cashless 2020 is a periodic look at all things cashless as Japan gears up for the big event. If there is a topic that you’d like covered tweet me @Kanjo
A reader asked if I knew of any comprehensive English guide for the various Japanese point systems: Rakuten, T Point, JRE POINT, etc. It’s a good question, and a timely one. Unfortunately the short answer is no, a guide like that does not exist.
It took me a year to put together a good Apple Pay Suica ecosystem guide (at least I think it’s good for covering the basics, if not let me know). It’s impossible to intelligently catalog the various Japanese card and payment app ecosystems into English less than two weeks before the consumption tax CASHLESS rebate program kicks off.
Instead of a broad useless sweep, I have updated my JRE POINT guide that covers the JR East ecosystem of Apple Pay Suica and View Card, and how they work with the CASHLESS rebate program. The basic concepts apply to all CASHLESS rebate program qualified cards and app systems. Hopefully this post and the JRE POINT guide will give you enough information to find the right setup for your card/app payment system of choice.
You may not have to do anything to get ready. As the rest of this post shows, credit card users don’t need to do anything more than use a Japanese issue credit card. And don’t feel bad if this all seems arcane, language is no barrier for feeling lost, some Japanese feel lost too.
The JAPAN CASHLESS Rebate Program
In tandem with the 10% consumption tax starting October 1, the Japanese government is launching a CASHLESS rebate program that offers a 5% or 2% rebate with cashless purchases at participating stores and online shopping sites like Amazon JP, Rakuten JP and Yahoo Japan Shopping. The idea is to ween Japanese society away from its infamous “cash addiction”.
The CASHLESS program is run by the Japanese Ministry of Economy, Trade and Industry (METI) and will be valid for all cashless purchases from October 1, 2019 until June 30, 2020 at qualified participating stores. A METI outline of the CASHLESS program is available in PDF (Japanese only). The CASHLESS web site is informative and constantly updated, hopefully with English at some point.
How do you get the rebate? This part is easy: make purchases at any store displaying the red 5% or 2% CASHLESS logo with:
- Japanese issue credit/debit cards, either plastic or on Apple Pay (iD/QUICPay)/Google Pay
- Japanese e-money cards (Suica, nanaco, WAON, etc.) either plastic or Apple Pay Suica/Google Pay
- Japanese QR Code smartphone payment apps (PAYPAY, Origami Pay, Rakuten Pay, etc.)
There are 3 basic rebate models related to the type of transaction:
- Credit (post pay): CASHLESS program rebate amount calculated by the card company at billing and automatically deducted from your monthly credit card bill. Credit card CASHLESS rebates are not tied to point systems.
- Debit (instant pay): CASHLESS program rebate amount calculated by the card company at end of the month and automatically refunded to your bank account, or instantly deducted from the purchase amount at transaction. Debit card CASHLESS rebates are not tied to point systems.
- Prepaid (stored value): CASHLESS program rebate amount is calculated at the end of the month and refunded as points. The point system depends on the type of e-money prepaid card: JRE POINT for Suica, Rakuten point for Rakuten EDY, etc. The point rebate model also applies to QR Code systems like PayPay. Prepaid e-money rebates are tied to point systems, QR Codes are tied to the user account be sure to check the CASHLESS details of your QR Code payment system.
The CASHLESS web site maintains comprehensive lists of qualified credit/debit cards, and prepaid e-money cards/QR Code Apps. The site is constantly updated with direct links to all participating payment system CASHLESS rebate information pages. Search your payment system, and it will link you with the CASHLESS rebate information for your payment system. All pages are in Japanese language, there is no English.
Japanese credit card users have it easy and this is good: credit cards are the cashless platform that has been around the longest and most people have one. All they need to do is use their credit card at any store displaying the red CASHLESS logo, that’s it. Credit cards will have the widest footprint in the CASHLESS rebate problem because they are not tied to point systems. Debit cards are straight forward too but users should check how the rebate/refund is handled for the card. QR Code systems sign up users with an account and should be automatic but be sure to check the rebate/refund method.
Prepaid e-money card users enjoy the most security and privacy. Anybody can buy a Suica at a train station or a nanaco at 7 Eleven, but unless you take time to register the card to its matching point system, either online or in an app, you will not get a CASHLESS rebate. Register your prepaid e-money card with the appropriate point system. For Apple Pay Suica users this is covered on the JRE POINT guide.
Prepaid e-money cards are generally at a disadvantage compared to credit cards because they are tied to point systems and have a smaller footprint: Suica for example, can only get CASHLESS rebates at stores displaying both CASHLESS and JRE POINT logos:
JAPAN CASHLESS will be releasing iOS and Android map apps for finding stores near you participating in the CASHLESS rebate program. I will update this page as new information becomes available.
Tokyo Cashless 2020
Dear JR East, we need a new Suica Charge App
>Consumption tax relief with the CASHLESS rebate program