We live in a world of whirling change. Everything in our daily routine evolves continuously, from our communication mediums to digital payments. While companies used to handle salaries in person via paymasters in the late 80s, in today’s world, cashless payments reign how to receive our monthly wages. In this article, let’s take a closer look at magnificent Japan and its long path to becoming a fast-emerging cashless society.
Actually, in contrast to its first impression as a nation dedicated to traditions and pretty conservative, Japan is the Mecca of many technological innovations such as cassette players, QR codes, blue LED, bullet trains, smart toilets, Japanese cars, and many more. As a bearing of the modern world, Japanese national companies hold the pulse of what’s new or what’s about to penetrate our lives.
Some Japan-originated leading companies are Toyota, Honda, Nissan, Mitsubishi, Yamaha, Nikon, Minolta, Olympus, Sony, Toshiba, Panasonic, Fujitsu, Casio, and Nintendo. Told you! Japan has the leading establishments in a plethora of markets. Through its 126 million population with a Labour Force Participation Rate of 62.90, it is not surprising why Japan is capable of being a pioneer regarding multinational associations.
According to recent research, consumers realised the importance of contactless payments by a growing number of 38% and use QR code payment systems on multiple platforms. Interestingly, 32.1% of the male population pays bills online, while this percentage drops to 16% for females. However, this considerable rise in adaptation of cashless brings a question to minds: Can Japan corporate with cashless salaries?
Since Japanese finances slowly shift away from cash payments, the government is getting ready to introduce businesses to pay salaries using cashless payment accounts such as digital wallets. Yet, the Ministry of Economics also underlines that if the salary amount exceeds the ¥1 million cap, the surplus portion must be repositioned within the day to a bank account that the recipient predetermined in advance.
Considering 94% of Japanese are active Internet users, and Japan’s median age is 49.2, it is expected that both corporations and employees will prefer this more practical method rather than traditional bank solutions at a snail’s pace. The aim is to increase the cashless transaction by 45% by 2025, when the Osaka Expo will be held, and at least 80% cashless in a decade.
The Benefits of Cashless Salaries
The move towards cashless salaries isn’t just about convenience; it’s about making life easier and fairer for everyone involved.
- Reduced Administrative Costs: Imagine getting paid without the hassle of waiting in line at the bank to deposit a paper check. By going cashless, companies can cut down on administrative costs, which means more resources can be invested where they matter most.
- Prevention of Unregistered Labor and Unfair Profit: But it’s not just about saving time and money. Going digital helps tackle issues like unregistered work and shady financial dealings. With every transaction recorded, it becomes much harder for anyone to slip under the radar and exploit the system.
- Accessibility for Foreign Workers: Navigating the banking system in a new country can be daunting for foreign workers. Cashless salaries offer a lifeline, allowing them to receive their hard-earned wages without the need for a traditional bank account.
- Incentives for Companies: And let’s not forget the perks for companies. From cashback to rewards for using digital payment methods, there are plenty of incentives to make the switch.
- Enhanced Regulation and Transparency: But perhaps most importantly, going cashless promotes transparency and accountability. With every transaction accounted for, it’s easier to track where money is going and ensure that everyone plays by the rules.
So, as Japan and the world embrace the future of finance, it’s clear that going cashless isn’t just a trend – it’s a step towards a fairer, more efficient way of doing business for us all
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