Jul 28 (Nikkei) - Internet portal operator Yahoo Japan said Friday that it will start a mobile payment service this autumn, becoming the latest to join the cashless payment bandwagon.
The move is an attempt by the SoftBank Group affiliate to challenge Line, a popular chat app operator, which has championed mobile payment in Japan. Line last month unveiled plans to roll out a mobile payment system based on quick response (QR) codes in Japan.
The moves are in line with the Japanese government's policy of spreading cashless payment. According to the Ministry of Economy, Trade and Industry, cashless transactions account for only 18% of personal expenditure in Japan, compared with 45% in the U.S. and 60% in China. The ministry wants to raise that share to 40% in 10 years.
Yahoo Japan is currently owned 36% by SoftBank Group. Earlier this month, SoftBank said it will increase its stake in the Japanese portal to 48% by purchasing shares from Altaba, formerly Yahoo, of the U.S.
Yahoo Japan earns revenues from advertisements on its portal and from the operation of auction and e-commerce sites.
Yahoo Japan enters a crowded field. In addition to Line, several other Japanese startups, such as Origami and Infcurion, have already announced plans to provide mobile payment services. Japan's three largest banks -- MUFG, Sumitomo Mitsui and Mizuho -- have already agreed to develop a QR-code based payment system together.
These companies are trying to respond to the rapid spread of Chinese mobile payment services Alipay and WeChat Pay in Asia.
