Digital Salary Payments Still Uncommon in Japan
 

App-based digital salary payments are yet to gain traction in Japan two years after being introduced, with only a fraction of workers choosing the option despite the nation slowly trending towards a cashless future.

Over 100 companies now offer PayPay, a government-approved mobile payment app, as a method to receive salaries, but only 2.8 percent of 20,000 people aged between 18 and 69 surveyed recently said they are paid via the app or another like it, despite 61.9% knowing it may be possible, according to research firm MMD Labo.

While four app providers have started offering salary payment services, experts believe people need to see more benefits from choosing the method for it to grow in popularity.

Partial or complete salary payments via one of the approved apps are also mostly available only to full-time employees, with the experts saying that part-time workers who want to be paid more swiftly are a group that would likely take up the option more readily.

Under the current framework, companies need to get agreement from employees if they wish to pay wages via the apps.

Yoshinoya Co, a beef bowl chain operator, began offering salary payments via PayPay in April. "I use PayPay often so I don't need to charge it" if wages are paid to the app, a female part-time worker said.

Meanwhile, another survey conducted by a private-sector company for the government targeting 10,000 people showed that approximately a third do not want to receive their salaries on one of the apps. Of those not interested, 48 percent said they do not see the need for it.

The survey also showed nearly 80 percent of around 2,300 companies have no plan to introduce the option, citing the lack of demand, increased costs and administrative work.

Despite there being little demand for app salary payments, Japanese are slowly but steadily shaking off their preference for notes and coins.

The percentage of cashless payments in 2024 topped 40 percent of all settlements in value, achieving the government's target a year ahead of schedule, the economy ministry said.

Source: https://japantoday.com/category/business/cash-loving-japan-reluctant-to-switch-to-app-based-salary-payments

Comprehension

What percentage of surveyed people said they receive their salary through an app like PayPay?
How many people in the survey knew it might be possible to receive salaries via app?
How many app providers have started offering salary payment services in Japan?
Who are considered more likely to use salary apps, according to experts?
What condition must companies meet to pay wages through apps?
Why do many companies avoid using salary payment apps?
What example is given of a company that uses PayPay for salary payments?
How did one part-time worker feel about receiving salary through PayPay?
What reason did 48% of uninterested workers give for not using the apps?
What percentage of all payment transactions in Japan were cashless in 2024?

Discussion

Why do you think app-based salary payments have not become popular in Japan yet?
Would you want to receive your salary through a mobile app? Why or why not?
What are the advantages and disadvantages of being paid through a digital app?
How could the government or companies encourage more people to try app-based payments?
Why do you think Japanese society is still somewhat hesitant about cashless transactions?
What could make part-time workers more willing to accept digital salary payments?
Do you think older generations are less likely to adopt salary apps? Why?
Is it fair that employers must get employees’ permission to pay through apps?
What risks or concerns might employees have about getting paid digitally?
How is Japan’s cashless trend different from what you see in your own country?

Vocabulary

Gain traction – To become more popular or accepted.
Cashless – Using digital or card-based payments instead of cash.
App-based – Operated or accessed using a mobile application.
Fraction – A very small part or portion.
Framework – A system or structure of rules or conditions.
Administrative – Related to managing or organizing business operations.
Surveyed – Asked questions for research purposes.
Preference – A greater liking for one alternative over another.
Cite – To mention as an explanation or reason.
Steadily – Gradually and consistently over time.