JCCA Surveys the Effects of Introducing Full Cashless Payments

The Japan Credit Card Association (hereafter 'JCCA', Chairman: Yukihiko Onishi, Sumitomo Mitsui Card Co., Ltd.) has announced the results of a study and survey on the effects of introducing and expanding full cashless* (hereafter 'Full CL') payments, aiming to achieve the government's target of an 80% cashless ratio in the future (65% in 2030). *A state where full cashless payments are introduced with absolutely no cash handling by either consumers or merchants at the time of settlement. ...hereafter, Survey A - Conducted a web survey on the 'effects of introducing Full CL' targeting 1,521 merchants handling credit cards (including 35 major industries that have not yet introduced Full CL). - To calculate the financial effects of transitioning to Full CL, the survey items compared the cost increase when the CL ratio reaches 100% with the cost reduction of personnel expenses and cash-related costs, after interviewing about sales, CL ratio, merchant fees, etc. ...hereafter, Survey B - Conducted individual interviews with 11 companies that have introduced Full CL regarding the effects and challenges after introduction. 1. Survey Results Survey A revealed that by introducing Full CL, about 15% of all merchants see '1. Improvement in operating profit margin,' and Survey B revealed that '2. Loss of sales opportunities is minimal.' Regarding 1, as an effect of introducing Full CL, while merchant settlement fees increase, the rationalization through cashless payments improves personnel expenses and cash-related expenses (security costs, deposit/withdrawal/exchange fees, etc.), resulting in an average improvement in operating profit margin of about 1.4% (see the figure below). Regarding 2, with the introduction of full cashless payments, there are concerns about a decrease in sales due to opportunity loss from losing so-called cash-preferring customers. However, it was found that this can be adequately covered by carefully providing advance notice through SNS, flyers, etc., and taking measures such as installing cash charge machines. In addition, cases were confirmed that led to 3. Reduction of change replenishment and post-business administrative work, 4. Reduction of the risk of loss or theft of cash in the store, and 5. Shortening of settlement time. 2. Future Prospects Based on these survey results, JCCA evaluates that the introduction of Full CL has many merits and effects for merchants. Furthermore, with the growing need for labor-saving, the downsizing of stores, the spread of mobile order payments, and the progress of equipping My Number cards with payment functions, it is expected that the number of merchants with high affinity for Full CL will expand. The results of this survey are also shared with the member companies of our association. Business operators considering or interested in introducing Full CL are encouraged to contact a credit card company affiliated with JCCA or our association. ■Japan Credit Card Association (JCCA)