As consumers around the world grow more comfortable paying with cards and smartphones instead of cash, financial technology companies are racing to expand into markets that still rely heavily on traditional payments. Japan presents a unique opportunity: while cash remains king for everyday purchases, the country’s strong mobile infrastructure and tech-savvy population make it fertile ground for new digital payment solutions. Against that backdrop, Square is making its move into one of the world’s largest and most influential retail markets.
Square has entered the Japanese market with its mobile card reader and tablet point-of-sale register apps.
The U.S. company has partnered with Sumitomo Mitsui Card Corporation (SMCC) for its Japanese venture. SMCC has been credited with successfully introducing Visa to Japan.
Japan is a market where cash is still the dominate payment method. At the same time, mobile phone penetration in Japan is one of the highest worldwide, making it an attractive market for mobile services such as mobile payments and mobile card acceptance solutions. Products such as Square are expected to lower the barriers for some small businesses, such as convenience stores, to start accepting cards at lower costs.
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