What is electronic money?In Japan, the term electronic money usually refers to a prepaid means of cashless payment. E-money is a contactless payment method based on NFC technology, which can be used via smartphones or IC smartcards. The first e-money smart card in Japan was issued in 2001. Next to retail companies and payment service providers, many public transportation companies have introduced their own e-money cards for the collection of transportation fees.
The spread of e-money in JapanIn Japan, prepaid smarts cards are accepted at convenience stores and other shops, and can be used to pay for vending machine products and public transportation fees. There is a growing number of e-money terminals available in Japan, offering consumers the opportunity to pay cashless.
Although the average amount of money spent per electronic money transaction excluding transportation fares has been relatively small, the annual value of transactions with e-money has grown significantly over the past decade.