Electronic money use in Japan: part 1 of 2

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Do you know about electronic money graph[part 1] [part 2]

DIMSDRIVE carried out a survey at the start of December to find people’s views regarding electronic money. They interviewed by means of an internet-based questionnaire 6,430 people from all over Japan, 2,736 (42.6%) male, all members of their monitor group.

The Suica system comes out tops for name recognition, but that may be because it is promoted as not just electronic money, but more importantly as a rail pass. Suica is the preferred system for issuing railway season tickets, so it gets heavily promoted in that respect, and is also often featured on in-train advertising, therefore it has very high name recognition, as can be seen here.

However, Edy scores higher as the first thing that springs to mind regarding electronic money, perhaps because the advertising for Suica is weighted towards the season ticket features, not shopping.
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Mobile phone electronic wallets gaining users

NTT DoCoMo recently carried out a survey of users of mobile phones with electronic wallet functionality to see how, or even if, they were being used. Note when reading this survey that first NTT DoCoMo has heavily invested in the electronic money infrastructure and almost all of their new models come with this feature built-in. For their FOMA range (3G phones), it is a compulsory feature, and with sales figures showing over 80% of new and upgrading customers are choosing these models, NTT have a vested interest in the success of electronic wallets, as they no doubt get a transaction fee for every electronic money purchase. This may or may not have influenced the outcome of the survey. However, if accurate, it shows a pretty high degree of market penetration. UPDATE: If only I’d posted this right after I translated it last week, I could have beaten the BBC on this story!

Although launched only last July, in just one year and two months (September 3rd) DoCoMo reached 6 million electronic money-capabile phones sold, and by the first of October there were about 25,000 shops nationwide and 6,000 vending machines equipped with readers.

In this survey, 4,000 users of mobile phones with the DoCoMo おサイフケータイ (osaifu keitai, Mobile Wallet) service functionality built-in were interviewed, 2,200 male, 1,800 female, and their answers are as follows.

Q: Have you used the Mobile Wallet functionality of your phone?

  Using it Used to use it, but stopped Not used it
All 28% 3% 69%
Up to 19 years old 18% 4% 78%
20 to 29 years old 27% 4% 69%
30 to 39 years old 32% 3% 65%
40 to 49 years old 29% 3% 68%
Over 50 years old 21% 2% 77%

This 28% represents 1,108 people, and if this is scaled up to cover all people owning electronic-money ready DoCoMo phones, about 1.82 million people are using this service.

Q: How often do you use your Mobile Wallet? (Sample size=1,108)

Over thrice a day 6%
About once a day 12%
About five times a week 5%
About thrice a week 15%
About once a week 24%
About once every two weeks 11%
About once a month 17%
Hardly ever use it 10%

Compared with the same question asked in May, the percentage using the service once a day or more has increased from 13% to 18%.

Q: Where do you use your Mobile Wallet? (Sample size=1,108, multiple answer)

Convenience store 84%
Rental shop 25%
Vending machine 24%
Airport 22%
Electrical retailer 18%
Pharmacist 16%
Book or CD shop 15%
Cafe 15%
Fast food store 14%
Bar or pub 12%
Family Restaurant 11%

Note that at some places, like at airports, the Mobile Wallet is not used as money, but as a member’s card for saving points, etc. When you buy a plane ticket from ANA online, you can get an email sent to your mobile phone that allows you to access an application that records a transaction identifier in the IC card of the wallet, so ticket collection and check-in can be performed simultaneously and effortlessly.

Q: How satisfied are you with your Mobile Wallet service? (Sample size=1,108)

Extremely satisfied 13%
Satisfied 69%
Dissatisfied 19%

SQ: If extremely satisfied or satisfied, will you buy a Mobile Wallet capable phone next time you change phones? (Sample size=902)

Definitely want to buy 47%
Want to buy 52%
Don’t want to buy 1%

Q: What do you like about using your Mobile Wallet? (Sample size=1,108)

Just hold over reader to use 73%
Speedy purchasing 60%
No fiddling with a wallet 46%
Earn points 21%
Can refill via iMode 20%
Can see remaining cash on display 17%
It’s OK not to bring a wallet 14%
Can use for lots of services 14%
Less stuff in my wallet 12%

Q: What services would you like to use in the future? (Sample size=4,000)

Electronic money 58%
Point card 56%
Rail pass 35%
Cinema ticket 20%
Cash card 18%
Home key 15%
Concert ticket 8%
Theme park passport 8%
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Electronic wallets spreading

According to this survey by MyVoice, performed at the start of August of this year amongst 12,317 registered members of the MyVoice Community, the following views on electronic money are as follows. 7,002 women and 5,295 men took part in the survey, with almost 40% being aged 30-39.

Q: Select all the electronic money brands you know.

Suica (JR East) 71.3%
Edy (Bitwallet (ANA et al)) 63.2%
WebMoney 35.7%
ICOCA (JR West) 34.9%
ChoCOM (NTT) 20.8%
BitCash 14.7%
Others 3.3%
Don’t know about electronic money 11.5%
No answer 0.2%

Q: Have you used electronic money?

Yes 37.2%
No 62.8%

Q: For those who have used electronic money, what brands have you used? (Sample size=4,582 I think)

Suica (JR East) 54.8%
Edy (Bitwallet (ANA et al)) 34.7%
WebMoney 23.2%
ICOCA (JR West) 11.0%
ChoCOM (NTT) 5.7%
BitCash 3.9%
Others 4.4%
No answer 0.4%

Note that Suica and ICOCA are regional brands focused around the two conurbations of Tokyo and Osaka, so the overlap between the two brands might be pretty small, although in the Osaka area there has been adverts describing how the ICOCA can be used in the Suica area. I would also suspect that a lot of the Suica and ICOCA users are not using the wallet features of the card – the main use is perhaps just as an electronic season ticket. Personally speaking I didn’t use the electronic wallet portion until over a year after getting the card.

Q: For those who have used electronic money, what have you used it for? (Sample size=4,582 I think)

Travel tickets 55.6%
Convenience store 42.4%
Net shopping 23.2%
Kiosk (usually on station platform) 15.3%
Vending machine 5.0%
Theatre/event ticket booth 3.5%
Supermarket 3.3%
Pharmacy 2.7%
Department store 1.6%
Discount store 1.2%
Others 14.5%
No answer 0.4%

Q: From now on, do you think you want to use electronic money? (Sample size unclear. All participants perhaps?)

I want to use 19.3%
I might want to use 26.8%
I may or may not want to use 31.7%
I don’t really want to use 13.5%
I don’t want to use 8.1%
No answer 0.7%

Sample reasons for answers:

I want to use 34yo male Cashlessness seems convenient
  20yo female I want to get Miles
  33yo male Points and other privileges
I might want to use 42yo female I’ve got a Suica pass in mind
  25yo male Handy in emergencies
  32yo female It seems to be becoming necessary these days
I may or may not want to use 49yo male Too many types, and the number of cards needed is inconvenient
  27yo female Refilling the card is a pain. Still just a few places to use the cards.
  44yo male If I had one I might use it (eh?)
I don’t really want to use 43yo female I don’t feel I can trust the security aspect
  23yo male I’m a cash man myself
  39yo female I can’t yet really understand the whole idea
I don’t want to use 26yo male I’m concerned that personal information will be disclosed
  30yo female I’d probably lose all my money sense
  64yo male It’s unnecessary

I can’t say I’ve seen any cards used outside of station ticket gates myself, but I wonder if people were including their standard credit cards in the list of places they had used these cards? Most Japanese credit cards come with an IC Card component, and most supermarkets have signature-less and PIN-less transactions that are just as good as electronic money. I’d be in the “probably don’t want to use” camp myself, even though I have an ICOCA. The private rail equivalent, PiTaPa, is post-pay, which I am still not 100% sure about myself, especially since even the season ticket component is not paid in advance.

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