Smart Cards, Cell Phones Spur Travel, Commerce in Japan
Tuesday, 04 September 2007
Just like in the American bank card ad where commerce purrs along until someone has the audacity to use cash, Japan is decreeing that smart cards – and cell phones -- are King.
According to a recent report at eMarketer -- on Frost & Sullivan’s Japan Smart Card Market research results released in August -- the Japanese government is offering concessions and benefits to smart card users at train stations, and encouraging swift, contactless toll payments on its highways, in order to ease the country’s infamous rail and road congestion.
Some rail companies offer concessions to commuters who pay with a smart card instead of cash, while others add loyalty points onto cards with every use. The points may be redeemed later for a free ticket, according to the eMarketer article.
"With a high volume of traffic -- more than 2 million commuters -- passing through Japan's major railway stations every day, contactless smart cards have proved to be extremely effective in improving processing speeds," Frost & Sullivan research analyst Navin Rajendra says.
The country has its roads covered as well. More than half of Japanese vehicles had been fitted with electronic toll collection smart cards at the beginning of 2006, according to the Frost & Sullivan report.
Mobile phones are also coming equipped with smart cards. More than 30 million mobile “wallet phones” are already in circulation, according to Frost & Sullivan. Users can pay for goods and services with their phones -- no cash or credit card required. Welcome to travel – and commerce – at the speed of light.