In recent years, due to the rapid increase in cashless payment services, it can be said that the introduction of payment tools is indispensable for stores.

The trigger was the “cashless / consumer return business” conducted by the government. As a result, about 36{5f3ac39ba1b9031997b955ac72c92bb5456d725b06fa10f02cdda1ab745591c7} of small and medium-sized stores have introduced cashless payment tools in Japan (May 2020 survey).

Although it can be said that the ratio is small in terms of numbers, it can be said that the number of stores that have introduced cashless payment has increased significantly compared to before.

So how much does cashless payment actually affect?

Reasons for introducing cashless payment

When MMD Research Institute and Square surveyed 500 owners who have introduced cashless payment, “Is there a reason for introducing it?”, The following results were obtained.

※Source：Joint survey with MMD Research Institute and Square

From the survey results, the most common reason was “I wanted to support the cashless / consumer return business,” which can be said to have led to an increase in the number of stores that have introduced it as the national policy aimed.

The second most common reason is “I want to reduce the opportunity loss due to non-cashless support.” What can be said in common with both is that the store introduced it in anticipation of an increase in the use of cashless payments.

Although the cashless / consumer return business allows consumers to receive returns, it will not be returned unless it is a target store, so opportunity loss will increase for the stores as well. As a result, it seems that the number of stores that have no choice but to introduce cashless payments has increased.

Consumer trends depending on whether or not it can be introduced

While it can be considered that the number of stores that support it has increased due to temporary national policy, it may be that cashless payments are taking root as consumers.

According to the results of a survey of cashless payment users, more than 30{5f3ac39ba1b9031997b955ac72c92bb5456d725b06fa10f02cdda1ab745591c7} of users answered that they “have stopped visiting the store because they do not support cashless payments.”

※Source：Joint survey with MMD Research Institute and Square

I think this is a result of the fact that the number of consumers who use cashless payments has increased not only due to the cashless / consumer return business, but also the number of consumers who are choosing as a means of payment.

The reason for this is that many users confirm in advance whether the store has introduced cashless payment. Nearly 40{5f3ac39ba1b9031997b955ac72c92bb5456d725b06fa10f02cdda1ab745591c7} of cashless payment users search and use stores, and it can be said that more and more people are choosing cashless payment as their main payment method.

Also, if you look closely at the users who answered that they stopped going to the store because of a store that does not support cashless, you can see that there is a difference depending on the gender.

※Source：Joint survey with MMD Research Institute and Square

Survey results show that men are more likely to stop going to stores than women, and there is not much difference between age groups.

The younger the age, the more cashless users there are, and the number tends to decrease as they get older, but it may be said that the effect of introducing cashless payment is not related to age. Therefore, at present, it seems necessary to regard the introduction of cashless payment as a “one sales promotion tool” for stores.

Intention of owners who introduced cashless payment

Many owners are affected by the survey results of cashless payment users. The results of the survey and the answers are as follows.

※Source：Joint survey with MMD Research Institute and Square

I also feel that it is desirable to continue using all the items. On the other hand, there are also answers from stores that do not support cashless payments, which are based on the answers from cashless payment users.

※Source：Joint survey with MMD Research Institute and Square

After confirming the result of “do not go to stores that do not support cashless payment”, many owners are thinking about introducing it, and it can be seen that 13{5f3ac39ba1b9031997b955ac72c92bb5456d725b06fa10f02cdda1ab745591c7} of the owners have different ideas before and after seeing it. It can be said that this is the result of the store feeling that it has no choice but to meet the visible needs of consumers.

Dissatisfaction points felt after the introduction of cashless payment

However, it seems that stores do not feel that they are all good about introducing cashless payments.

The results of a survey of “dissatisfaction points felt after the introduction of cashless payment” are as follows.

※Source：Joint survey with MMD Research Institute and Square

More than 60{5f3ac39ba1b9031997b955ac72c92bb5456d725b06fa10f02cdda1ab745591c7} of owners feel some dissatisfaction after the introduction. In particular, it can be seen that half of the owners who introduced it cited it because “the cost required for cashless payment and it takes time to deposit”.

In the cashless and consumer return business, the government has assisted in reducing the burden of introduction costs and fees. However, now that the subsidy period has expired, many stores seem to feel burdened.

In Japan, where cashless payments are delayed compared to other developed countries, it is expected that the movement to promote cashless payments will accelerate in the future. Therefore, it is unlikely that cashless payments will decrease.

For stores, it may be a big issue to consider the balance of needs with consumers in order to bear the fees and maintenance costs for cashless payments.