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business Economy Electronics industry Galagapos effect mobile payment R&D Telecommunications

Cash goes mobile and electronic. First to market in Japan and then what? (TTI-Vanguard conference keynote)

The organizers of the legendary TTI-Vanguard conference series organized a conference on “Futureproofing” in Tokyo, and invited me to give a keynote on Japan’s creativity and first-to-market for many technologies and business models, and Japan’s difficulties to capture global value from this creativity, a phenomenon often called “Japan’s Galapagos syndrome“.

The organizers, and particularly the legendary Bob Lucky and organizer Hal Levin made great efforts in assisting me to plan and prepare my talk. Although I was given about 30-40 minutes for my talk I was asked to present the conclusions in the first slide at the beginning of my talk and then essentially be prepared for open discussion during the 30-40 minutes instead of giving a traditional talk.

I picked electronic money, near-field payments and mobile payments as an example to demonstrate Japan’s Galapagos syndrome.

I started my talk with the following conclusions:

  • Conclusions 1: Japan has invented and first brought to market many new technologies and business models in today’s hottest areas, and Japan has been terrible at capturing global value from this incredible creativity
  • Conclusions 2: why does it take at least 10 years to reinvent the wheel in London?
  • Conclusions 3: WHAT is holding Japan back to capture global value from fantastic inventions?
Categories
business mobile payment

Will cash become obsolete? E-money, mobile payments and mobile commerce (Talk for the American Chamber of Commerce in Japan)

Gave presentation to the Telecommunications Committee of the American Chamber of Commerce in Japan (ACCJ) on October 7, 2009. My talk was attended by about 30-40 executives from major global telecom operators, global banks, new-age payment companies, and from major internet companies.

Outline:

What is money?

  1. Medium of exchange
  2. Unit of account
  3. Store of value
  4. (Standard of deferred payment, unit for debt)

e-Cash value to society:

  • reduced cash handling costs
  • Higher transaction speed
  • Convenience
  • Greater security (especially mobile) vs. reduced privacy

Why should be care? (Summary)

  • Electronic money is here to stay
  • One e-money card/Japanese person
  • 2% of banknotes and coins today
  • YEN 100 billion outstanding
  • YEN 100 billion transactions/month
  • Japan is far in advance, rest-of-world is likely to follow. But can Japan capture the value? maybe not.
  • However: “Galapagos syndrome

More information in our reports:
Mobile payments, e-money and mobile credit in Japan
SUICA and NFC payment for transport
QR codes are also used for payment

Categories
mobile payment

FeliCa wallet phones and other mobile trends

Interview about Japan’s advanced mobile payment and e-money systems for Germany’s national network ARD

Japan – years ahead of Europe in mobile payments

Got interviewed about mobile FeliCa and other mobile trends in Japan by Germany’s largest broadcasting network ARD:

read text of program here

listen to the broadcast here (in German)

Learn more about Japan’s mobile payments, wallet phones and e-money

Copyright 2013 Eurotechnology Japan KK All Rights Reserved

Categories
Finance mobile payment

BBC world TV interview about wallet phones

Read our CEO’s interview on BBC World TV about FeliCa wallet phones.

Watch the movie of the interview:
Windows Media Player – Bandwith = Low|Medium|High
Real Player – Bandwith = Low|Medium|High

Read our report Mobile payments in Japan.

Copyright·©2013 ·Eurotechnology Japan KK·All Rights Reserved·

Categories
mobile payment urban

QR codes everywhere

QR codes are everywhere in Tokyo – they have become probably one of the most important input tools for mobile phones…

QR codes for mobile phones and smart phones all over Tokyo - here in Shinjuku
QR codes for mobile phones and smart phones all over Tokyo – here in Shinjuku

We published our brand-new QR code report today

Copyright·©1997-2013 ·Eurotechnology Japan KK·All Rights Reserved·

Categories
mobile payment

Mobile Payment Forum and Eurotechnology Japan KK jointly organize the Mobile Payment Forum meeting in Tokyo

The Mobile Payment Forum promotes usage of mobile phones for payments, and works on interoperability, usability and standardization issues.

The major credit card companies (VISA, Mastercard, American Express…) together with the leading mobile phone makers (Nokia, Motorola, NEC…), and mobile operators (Vodafone, DoCoMo, TIM, T-Mobile, Sprint…) lead the Mobile Payment Forum.

On April 4, 2005, the Members and Directors for the first time held their meeting in Tokyo. Eurotechnology Japan KK took part in the organization of the meeting, and Gerhard Fasol gave an almost 2 hour long keynote presentation about mobile payment in Japan.

At this meeting, I also had the opportunity to introduce KDDI to the Mobile Payment Forum – there was no previous relationship between KDDI and Mobile Payment Forum.

Mobile Payment Forum Member’s meeting in Tokyo: “Mobile Payment Forum is a cross-industry organization launched in November 2001 to create a framework for standardized, secure and authenticated mobile payments, based on payment card accounts. The Forum intends to quickly and efficiently act as the bridge between the mobile and financial industries to accelerate the maturity of the mobile marketplace”.

Expanded version of Gerhard Fasol’s keynote about mobile payments in Japan

Copyright·©1997-2013 ·Eurotechnology Japan KK·All Rights Reserved·

Categories
mobile payment Telecommunications

QR-codes everywhere…

QR-codes (QR =Quick Response) seem to be everywhere. Amazon.co.jp has an i-Appli, which reads the ISBN from the barcode on the back of a book and takes you directly to the Amazon.co.jp i-mode site to order the book instead of buying it in the bookshop.

People in the mobile industry have QR-codes on their business cards:

QR code on business cards
QR code on business cards

Download our report on QR code applications for mobile phones in Japan
Download our report on QR code applications for mobile phones in Japan

Copyright·©1997-2013 ·Eurotechnology Japan KK·All Rights Reserved·

Categories
mobile payment Telecommunications

Update on Prepaid Phones in Japan

Prepaid mobile phones are a huge business in Europe.

In Japan prepaid mobile phone numbers are tiny, and NTT’s new CEO just announced that NTT-DoCoMo is planning to stop offering prepaid mobile phones altogether.

Find detailed statistics and market shares per operator for Japan’s prepaid market in our report on Japan’s telecommunications sector.

Copyright·©1997-2013 ·Eurotechnology Japan KK·All Rights Reserved·

Categories
mobile payment Telecommunications

Prepaid phones to be outlawed in Japan (see update below!)

The government coalition in Japan is preparing a law to outlaw prepaid mobile phones. The reason given is that too many prepaid phones are used for crimes, e.g. the “ore ore” fraud.

The number of prepaid phones in Japan is very small, but it’s not equally distributed. DoCoMo has almost no prepaid users, and has announced to abolish this service. Vodafone has about 10% prepaid users, and TuKa about 20% – so these will suffer when prepaid phones are outlawed.

Prepay phones as a ratio of all mobile phones in Japan compared to Europe and Italy
Prepay phones as a ratio of all mobile phones in Japan compared to Europe and Italy

Update: on 12 November 2004 the ruling coalition decided on a draft law, which will not outlaw prepaid mobile phones, but will make identification requirements more strict. (See update above)

Find an updated market analysis with statistics of Japan’s prepay mobile market in our report on Japan’s telecoms industry sector

Copyright·©1997-2013 ·Eurotechnology Japan KK·All Rights Reserved·

Categories
mobile payment Telecommunications

Version 8 of the "i-Mode report"

Completed version 8 of the “i-Mode Report” (260 pages, 45 figures, 120 photographs, and 25 tables)

Main changes and additions:

updated most statistics and graphs
added a section on mobile games on i-mode
updated the international section
updated the 3G section
updated the i-mode-FeliCa wallet-phone section
corrected many errors
updated the section on Japan’s telecom landscape: added recent transactions, and updated graphics

Copyright·©1997-2013 ·Eurotechnology Japan KK·All Rights Reserved·