#81 Contactless credit card at station gates
Can contactless cards be a savior for the mobility of foreign visitors to Japan?
Until mid-December, Tokyo enjoyed autumn-like weather and did not need thick coats. However, vital cold air began to move southward from the 21st. Japanese weather authorities issued a warning, using the expression "once in 10 years. This winter has been like a roller coaster ride, with temperatures changing so rapidly. It is often said in Japan that the distinction between the "four seasons" is blurred due to global warming. Spring and fall are becoming shorter, and summer turns into winter all at once. Our bodies have no time to adjust to the new season before it begins. For tourists visiting Japan during the year-end and New Year's holidays, please check the forecast frequently and take proper measures to prepare for fluctuating winter.
Now that we are back on topic, only some people buy tickets every time they use public transportation. Payment in stores rapidly diversifies, including credit cards, QR code payment, and IC cards such as Suica. It is no exaggeration to say that station ticket gates are the sole domain of the transportation system for contactless credit cards. The Suica is still the sole market leader in the Kanto area, but numerous payment methods are engaged in a fierce battle against the Suica for market share. However, it is a hassle for tourists visiting Japan to obtain an IC card upon arrival. In Europe and the U.S., credit cards with "touch" payment systems are spreading rapidly, which raises the question of why we can't use contactless credit cards for transportation.
This week, I will discuss the current status and future use of contactless credit cards at station ticket gates. Station ticket gates are the last place our credit cards are not accepted in Japan, where cashless transactions are rapidly advancing.
The situation of contactless credit cards in Japan
The current situation in Japan is hardly widespread. The number of VISA contactless cards issued in Japan has exceeded one hundred million, and the number of compatible terminals is rapidly increasing. However, the level of awareness in Japan is still, well, lower than in Europe and the United States. The environment may be ready, but people haven't recognized the convenience widely, and store clerks at face-to-face payment sites may not be fully aware of the convenience. Almost all of the credit cards I use daily are contactless. In particular, nearly all convenience stores accept them. Unfortunately, in most cases, if you don't tell the clerk that you want to make a payment by touch, the clerk will treat it as if a machine inserted it. Almost all cabs in Tokyo are touch-sensitive.
Situation at ticket gates in the metropolitan area
As of April 2023, people can use contactless credit cards in 42 projects in 26 prefectures throughout Japan, and the number of places where people can use contactless credit cards for public transport is steadily increasing.
Tokyu Corporation has already begun trial operations in Tokyo, and Tokyo Metro plans to start demonstration tests as early as April 2024. Keio Corporation has also announced that it will begin test operations by the end of March 2023. Since Tokyo Metro is the most frequently used transportation system by foreign travelers, is expected to become more convenient for foreign travelers with contactless credit cards from April next year.
Advantages and Disadvantages
What are the advantages and disadvantages of contactless credit cards for those visiting from abroad?
<Advantages>
You can use your contactless credit card without buying an IC or a one-day pass. However, please note that it is currently out of public transportation services that serve Narita and Haneda Airports.
It can also be used at most convenience stores and taxies.
<Disadvantages>
In the Tokyo metropolitan area, stations for using this credit card type are minimal.
It is different from public transportation in the U.S. and Europe. Contactless payment for public transport should be able to do the same as Suica.
Even if a store has a compatible terminal, the clerk is often not accustomed to handling contactless credit cards and must be informed by the customer that the payment is a credit card touch transaction.
The future of the contactless credit card in Japan
Looking at it as a local living in Tokyo, I see VISA's efforts are outstanding—a battle for supremacy between the two major credit card companies, VISA and Mastercard. The reason for this is that when I look at the touch payment display on the dedicated ticket gate of Tokyu Corporation, there is no indication of Mastercard, and it is not supported. I feel a competition for supremacy among credit card companies here.
As for the future, with the spread of contactless credit cards, the number of places where you can use them should steadily increase. In this sense, the Tokyo Metro's April 2024 launch will be a significant milestone. However, we should wait for the time to come for JR, which issues IC cards for each block of trains and supports smartphones, with Mobile Suica as a representative example. Passengers who commute by train commonly purchase commuter passes linked to their IC cards, so the issue may be how to attract such passengers. However, the benefits to travelers should increase.
The best option for international visitors
With contactless credit cards not freely available at station gates in the Tokyo metropolitan area for the time being, what is the best option for you? I have taken the liberty of considering the following priorities.
It is less of a hassle to exchange money from foreign currencies.
There is no need to buy a ticket every time you travel.
Less expense.
The answer, unfortunately, is to use a day pass or other ticket, which you must purchase first but is best suited to the day's activities. In the case of the Tokyo Metro, I had experienced many times when credit cards from overseas were not accepted when purchasing a day pass. Unfortunately, please carry a minimum amount of cash.
Summary
It is necessary to monitor the future of transportation systems and places where you can use contactless credit cards. However, as a global trend, Japan could be included among countries where contactless credit cards are in common. I will closely monitor the situation and keep you informed through my newsletters. The most significant stress for visitors to Japan is the various procedures involving currency exchange. Making speedy payments is essential for improving satisfaction when traveling to Japan.
I, too, needed help with how to dispose of local currency at the end of a trip abroad. While avoiding unnecessary expenses during the trip, it was miserable that I made extra purchases with the last remaining local currency.