Why Do Japanese Shop In Cash?
Japan is one of the leading countries in the field of state-of-the-art technology and innovation, but interestingly, the majority of Japanese prefer cash over credit cards and other electronic methods for buying and selling.
Japan is the only country in the developed world where four out of five shoppers take a wallet out of their pocket instead of a credit card when they pay at the counter, and count the currency notes and take the change back.
The Pervasiveness of Cash Has Reinforced:
Although cash transactions take longer, and other customers standing in line have to wait longer to reach the counter, the Japanese do not mind and prefer cash. Companies are offering various incentives to encourage the Japanese to buy and sell credit cards and electronically. Even PayPal has been offering them since October, that they will have to pay 10% less if they pay with PayPal. But it is being said that the Japanese will not take a 10% discount on the purchase and will only count the money to the shopkeeper.
The situation in other developed countries of the world is different from Japan. In South Korea, 90% of buying and selling is done electronically, while Sweden has announced that by 2023, the currency in its country will be depleted and all transactions will be done electronically.
European Use Credit Card:
In European countries, including the United States, most purchases are made with credit cards. Even in developing countries, the use of credit cards is on the rise, but the Japanese are not ready to come here.
The Technology Of Protecting The Electronic System Of Transactions
An interesting aspect in this regard is that the invention of protecting the electronic system of transactions from fraud and deception is also the invention of the Japanese, which is being used all over the world for the safe transfer of currency. Japan introduced the electronic code in the 1990s. The most used chip card for payments worldwide was also invented by a Japanese company Sony.
The Japanese, who are attracted to electronic transactions around the world, prefer cash to buy and sell in their own country. There are a number of reasons for this. The first reason is that Japan is the only country in the world where 28% of the population is over 65 years of age.
Japanese Way of Purchasing Things:
Older people are usually reluctant to try new things, but the case of the Japanese is a little different. Most older Japanese are living a life of retirement. Often there is no one to talk to. When they get tired of sitting at home, shopping becomes a means of communication. They pick up a small object and bring it to the counter. Then they take out the wallet and count the money, and count and take back the balance. During this time they gossip with the counter.
Katsuyoki, a shopkeeper, told AFP that the area was mostly inhabited by older people. Life here is very slow. People are in no hurry to come and go. They want to stop and talk while paying the price at the counter. That’s why they don’t like credit cards. Another major reason for buying with cash is that crime is almost non-existent in Japan. No matter how much cash you have in your pocket, you are not afraid that someone will snatch it.
An Electronic Transaction System.
The Japanese government is also concerned about the excessive use of cash. Due to the huge demand for cash, more than 200,000 ATMs are installed across the country. A recent report by the Boston Consultant Group states that the cost of disbursing cash at ATMs in Japan, their security, and the maintenance of cash machines is estimated at two trillion yen (18 billion dollars) annually. To reduce these costs, the government is trying to introduce an electronic transaction system.