Payment Related

As the new coronavirus is converging, the future of the payment business

Trends in the new coronavirus

A new type of coronavirus that has been rampant since the beginning of 2020. At one point, the number of infected people nationwide spread to over 5,000 every day, and each prefecture continued to set a new record high. However, with the announcement of the state of emergency accompanying the third wave, the number of infected people is declining, and the sickbed usage rate is also declining, and it is finally converging.

In addition, a vaccine against this new coronavirus was developed, and even in Japan, which was delayed compared to Europe and the United States, vaccination by medical professionals began, and it can be said that the exit of the pandemic has finally come to light.

It can be said that the spread of the third wave of coronavirus from the end of last year is finally approaching the final peak for calming down.

Although the prejudice is still unpredictable, the reality is that the number of infected people is decreasing and vaccination has begun, so it is necessary to look ahead.

Smartphone payment business as the new coronavirus is converging

Whether or not the Tokyo Olympics can be implemented or how it will be implemented has become the next major issue, but it is also becoming necessary to take measures such as the GOTO project to address economic issues.

Among the pandemics of the new coronavirus, the payment business using smartphones, etc., which have been relatively successful. With the support of the government, it can be said that it has expanded steadily.

Under the new coronavirus last year, consumption fell due to restrictions on going out and restaurant business at night. Personal consumption has shrunk, and the amount of credit cards used for large expenditures has decreased. However, the use of smartphone payments is increasing significantly in payment methods such as convenience stores and drag stores, mainly for small lots.

However, since competition has become fiercer compared to around 2018, when smartphone payments began, consolidation and abolition among payment companies has also been carried out frequently.

In the future, there is a high possibility that payments will be made by carriers such as Rakuten (Rakuten pay), Softbank (PAYPay, LINEPay), DoCoMo (d payment), and au (aupay).

Future outlook for smartphone payment business

What kind of impact will the convergence of coronavirus have on this smartphone payment business in the future? The following points can be considered when the coronavirus is converged by a vaccine or the like.

  • Personal consumption damaged by the corona is difficult to recover immediately.
  • In the future, it is unlikely that the uniform 100,000 yen payment for the new coronavirus last year will be made again, and personal consumption is likely to stagnate in the future.
  • The deficit of national finance has expanded worldwide due to measures against corona. With the need to work on fiscal consolidation, fiscal measures to increase consumption are likely to be difficult.
  • It is difficult to take more easing measures than it is now because monetary policy has continued to be super-easy for a long time.
  • There is a possibility that policy support for smartphone payment business will be provided as a consumption support measure that does not involve financial measures.

In this way, as the new coronavirus converges, there is a high possibility that support for the expansion of the payment business will be born as a consumption support policy, and it can be said that the expansion of the payment business using smartphones etc. can be expected.

Future development of smartphone payment business industry

On the other hand, in the payment business industry using WEB and smartphones, there is a high possibility that competition will intensify centering on mobile carriers after consolidation, and integration into four major carriers is occurring.

The integration of SoftBank Group and LINE has already been decided, and it is expected that PAYPay and LINEpay will inevitably be integrated. Also, at convenience stores, Famipay and others are focusing on tie-ups with carrier-based payment providers, and there is a high possibility that they will join some line in the future.

As a result, there is a high possibility that it will be narrowed down to Softbank (PAYPay, LINEpay), DoCoMo (d payment), au (aupay), and Rakuten Mobile (Rakuten pay) centered on mobile carriers, and its convenience. It can be said that there is a possibility that a disparity will be created depending on the provision of.

Currently, PAYPay is at the forefront, but it can be said that there is a high possibility that the market share will fluctuate because the smartphone payment market has been in the forefront for a short period of time.

Smartphone payment business as a profit compensation for mobile phone charge reduction

Due to the pressure from the Ministry of Internal Affairs and Communications to reduce mobile phone charges, it is possible that the revenue from mobile carrier communication charges will decline. As a source of revenue to supplement this, each company will have to focus on the smartphone payment business in the future.

There is a high possibility that the market will expand by capturing the demand of existing card companies, and the competition for market share will become a competition for services to consumers. It can be said that competition in the market will intensify and the profit margin of the smartphone payment business may decline.

However, as the market size expands, the cost ratio is likely to decline, and it is highly likely that it will support the profits of each company.

On the contrary, there is a possibility that the card companies will seek cooperation, and there is a possibility that ground fluctuations in the credit card industry will occur at the same time.

It is necessary to pay close attention to the smartphone payment business in the future

There is no doubt that the payment business market will expand in the future. It is still unclear how it will land, but it is necessary to pay close attention to payments made by smartphones. It is a service that enriches our lives, so let’s look forward to future developments.