Japan is poised to transform international transactions. It plans to expand QR code payments worldwide by 2025, and initial discussions are already underway in Southeast Asia. 

This ambitious move comes as the Japanese government aims to streamline cross-border transactions and boost economic ties with key regional partners. 

Expanding QR Code Payments Globally

Nikkei Asia tells us that the initiative, spearheaded by Japan's Ministry of Economy, Trade, and Industry, aims to achieve compatibility among QR code payment systems by fiscal 2025, which starts in April of that year. By doing so, travelers can make cashless purchases abroad seamlessly, without the hassle of currency exchange.

In recent talks, Japanese officials have engaged with counterparts from Southeast Asian countries. These discussions center on fostering collaboration to enable joint use of QR code payment services across borders. The goal is to establish a framework facilitating effortless transactions for local and international visitors.

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Facilitating this endeavor is the Payments Japan Association, which operates Japan's standardized QR code payment system known as JPQR. The association is working diligently to create a new system integrating JPQR with international service providers. This development is expected to pave the way for international cashless transactions, simplifying payments for users worldwide.

JPQR itself is a groundbreaking system that enables transactions through different service providers using a single QR code. This technology has already gained significant traction in Japan, with consumers embracing the convenience of in-store purchases via smartphone scans. 

Notably, according to a survey conducted in December 2021, approximately 39% of respondents in Japan reported using the QR code payment service PayPay, making it the most popular choice. Rakuten Pay followed closely behind, with 17% of respondents opting for the mobile payment app.

More Southeast Asian Rolling Out QR Code Payment Systems

However, Japan's efforts extend beyond its borders. Several Southeast Asian countries have also implemented standardized QR code payment systems, overseen by respective central banks. For instance, Thailand and Indonesia have robust systems in place, with payment service providers adhering to strict regulations set by authorities.

Moreover, in 2022, five ASEAN countries, Singapore, Indonesia, Thailand, Malaysia, and the Philippines-signed a memorandum of understanding to unify their QR code payment systems. Some of these countries have already begun joint use of QR code payment services, laying the groundwork for seamless cross-border transactions within the region.

Japan's push for interoperability in QR code payments serves multiple strategic objectives. Apart from enhancing economic ties with Southeast Asia, it also serves as a countermeasure against China's expanding influence in the digital payments sector. 

China has been actively promoting its domestic platforms for smartphone-based payments across Asia and Africa, challenging traditional payment systems.

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