While considered just part of business development, the move holds several digitalization learning points worth examining
As a popular tourist destination, Japan has a broad network of local merchants that stands to benefit from staying responsive to the evolving preferences of international tourists.
Many tourists are also exploring the lesser-known, rural regions of the country, and can benefit from seamless cross-border payment experiences similar to those in their home markets.
In early November 2024, PayPay, one of the country’s QR payment operators, had announced an expanded partnership with Alipay+ to broaden its merchant coverage network across Japan. Travelers using the latter payment partner apps will be able to scan PayPay QR codes to make payments at around three million local merchant-presented mode retailers across Japan.
E-wallet partners and merchants have also collaborated to enhance consumer engagement through marketing initiatives at airport shops, department stores, electronics and appliances retailers, health and beauty shops, convenience store chains, and premium shopping malls.
According to PayPay’s Corporate Officer/Division Head, Finance Business Strategy Division, Masayoshi Yanase, through providing convenient and secure payment solutions, “we enhance the travel experience for global tourists… to contribute to economic growth across Japan by supporting digital transactions for businesses of all sizes, from bustling city centers to emerging regional destinations.”
Said Douglas Feagin, President, Ant International, the simplicity of QR code payment is proving to be increasingly popular. “Together with our partners like PayPay, we are powering inclusive economic growth by connecting the vibrant supply chain of Japan’s nationwide merchants to the growing demand of international consumers for hyper-local experiences via the global payment ecosystem. Enabling travelers to pay with their home wallets when they see a PayPay QR code will open up the payment borders for the global tourism marketplace.”
This case study highlights the importance of addressing consumer trends quickly with technology; tapping technology to modernize any slack in the supply chain (the rural retailers); and leveraging collaborations with inclusive technology networks to drive consumer engagement within and outside of the operating country.
