[Japan] Workers reluctant to switch to app-based salary payments

[Japan] Workers reluctant to switch to app-based salary payments
15 May 2025

In Japan, app-based digital salary payments have low adoption rates two years after being introduced, with only a fraction of workers choosing the option despite a trend towards a cashless future in the nation in general, Kyodo News reports.

Over 100 companies now offer PayPay, a government-approved mobile payment app, as a method to receive salaries. However, the research firm MMD Labo found that of 20,000 people aged between 18 and 69 surveyed recently, just 2.8 per cent said they are paid via the app or another like it, despite 61.9 per cent knowing it may be possible.

Four app providers have started offering salary payment services in Japan, but experts reportedly believe workers need to see more benefits from choosing the method if it is to grow in popularity.

In addition, partial or complete salary payments via one of the approved apps are primarily available to full-time employees, though experts say that part-time workers who want to be paid more quickly are a group that would more readily choose it as an option.

Under the current framework, companies must seek agreement from employees if they wish to pay wages via the apps.

Another survey of 10,000 people conducted by a private-sector company for the government revealed that approximately a third did not want to receive their salaries on one of the apps. Of those not interested, 48 per cent reportedly said they did not see the need for it.

The survey also showed that nearly 80 per cent of around 2,300 companies have no plan to introduce the option. They cited the lack of demand, increased costs and administrative work.

Though there is little current demand for app salary payments, Japanese people are slowly moving away from their preference for notes and coins. According to the economy ministry, the percentage of cashless payments in 2024 topped 40 per cent of all settlements in value and achieved the government's target a year ahead of schedule.


Source: Kyodo News

In Japan, app-based digital salary payments have low adoption rates two years after being introduced, with only a fraction of workers choosing the option despite a trend towards a cashless future in the nation in general, Kyodo News reports.

Over 100 companies now offer PayPay, a government-approved mobile payment app, as a method to receive salaries. However, the research firm MMD Labo found that of 20,000 people aged between 18 and 69 surveyed recently, just 2.8 per cent said they are paid via the app or another like it, despite 61.9 per cent knowing it may be possible.

Four app providers have started offering salary payment services in Japan, but experts reportedly believe workers need to see more benefits from choosing the method if it is to grow in popularity.

In addition, partial or complete salary payments via one of the approved apps are primarily available to full-time employees, though experts say that part-time workers who want to be paid more quickly are a group that would more readily choose it as an option.

Under the current framework, companies must seek agreement from employees if they wish to pay wages via the apps.

Another survey of 10,000 people conducted by a private-sector company for the government revealed that approximately a third did not want to receive their salaries on one of the apps. Of those not interested, 48 per cent reportedly said they did not see the need for it.

The survey also showed that nearly 80 per cent of around 2,300 companies have no plan to introduce the option. They cited the lack of demand, increased costs and administrative work.

Though there is little current demand for app salary payments, Japanese people are slowly moving away from their preference for notes and coins. According to the economy ministry, the percentage of cashless payments in 2024 topped 40 per cent of all settlements in value and achieved the government's target a year ahead of schedule.


Source: Kyodo News

Leave a Reply

All blog comments are checked prior to publishing