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Cashless and Electronic Payments Services in Japan

GTalent, a job-hunting and job-changing agent for foreigners, hear from foreigners who come to Japan for work, such as “Can we still only use cash in Japan?” “Is there a place where cashless services can be used in Japan?”From foreigners coming to Japan, it’s very anxious that they don’t know what can be used as a payment method when they buy something.In this article, We would like to introduce how much cashless society is in Japan compared to overseas, and the recommended cashless payments that can be used in Japan.Status of cashless payments in Japan and overseasCashless payment situation in JapanAccording to data from the Ministry of Economy, Trade, and Industry, the diffusion rate of cashless payments in Japan was less than 20% as of 2016, which is low compared to other developed countries.Reference:Ministry of Economy, Trade and Industry/ Current status and significance of cashlessAlso, according to this Ministry of Economy, Trade, and Industry material, the reasons why cashless payment is not prevalent in Japan are as follows.Reassurance for the cashMany choices of paymentReassurance for the cashUnlike overseas, there is almost no distribution of counterfeit bills in Japan. Therefore, life is based on the assumption that the received banknotes are genuine.the distribution of counterfeit bills has become a major social issue overseas, and the expanse of cashless payments was essential to reduce the distribution of counterfeit bills. In Japan, the distribution of counterfeit bills is lower than overseas and it is said to be one of the reasons for the slow spread of cashless payments.Many choices of paymentThere are various methods of cashless payments that are mainly used in different countries. For example, in South Korea, credit card is the most commonly used cashless payment method. In China, QR code payments such as “Alipay” and “WeChat Pay” are the mainstream.In Japan, unlike China or other cashless top countries, many companies offer cashless payment methods, and there are various options such as PayPay, Merpay(Mercari), and LINE Pay even in only QR code payments. Nothing of mainstream service causes the slow penetration of cashless payment in Japan.Cashless payment situation at OverseasAs mentioned above, according to the Data of the Ministery of Economy, Trade and Industry , South Korea, the United Kingdom, and China (96.4%, 68.6%, 65.8%) have prevailed the cashless society much more than Japan(19.9%).Overseas, the government has led the promotion of cashless payments, reducing the opportunity of counterfeit bill circulation and the cost of issuing new bills.In Japan, it is difficult for the government to penetrate the people with political force, and because many elderly people have a strong resistance to cashless settlement, the introduction is not progressing well.Advantages and Disadvantages of Cashless Payment in JapanAdvantages of cashless payment in JapanFrom now on, We would like to introduce some of the advantages of using cashless payment in Japan.Reduce the waste of Counting CashAbundant Points and BenefitsAlthough there are similarities with other countries, each company has unique points and benefits, we can say it is a characteristic of Japan.Reduce the waste of counting cashIn Japan, not only bills but also small changes are used, so when cash is used for accounting, it is surprisingly time-consuming to count cash.。Within the case of cashless payments such as credit cards and contactless payments, you do not need to count the cash, so you would be able to omit this little action and perform smooth accounting.Abundant Points and BenefitsAmong companies that provide cashless payment services, points can be provided and campaign benefits can be used according to the amount spent.For example, there are benefits such as discounts on products and travel tickets, payment with possession points, etc.Especially in Japan, each store often has its point system. Its own “point card” is often issued. Therefore, in Japan, point cards often accumulate in the wallet when you notice it.This trend does not change even for cashless payments, each payment company has its points for cashless payments, and each of them has tie-ups with different retail stores, so there are many various points and discounts for consumers in Japan. These often confuse consumers.Disadvantages of Cashless Payment in JapanBelow, We would like to introduce the main disadvantages of cashless payment in Japan.Limited number of stores that we can use cashless paymentLack of seamless links with bank accountsSecurity concernsLimited number of stores that we can use cashless paymentIn recent years, the number of stores handling cashless payments has increased little by little, but according to the Ministry of Economy, Trade, and Industry, the diffusion rate in Japan is still below 20%. In other words, there are limited places available.( Data of the Ministery of Economy, Trade and Industry )Also, the cashless payment service in Japan is assumed to have a higher fee for member stores than other countries, and many stores can only accept cash. Even some major retailers have not yet introduced cashless payments.There are numerous types of cashless payments, so it is necessary to confirm whether you can make cashless payments and what kind of cashless payments you can use before entering the store.Lack of seamless links with bank accountsIn Japan, debit cards are less popular than in other countries, and in most cases, even with electronic payments using smartphones, which are necessary to bother charging from a bank account and linking with a credit card.Also, depending on the electronic payment application on the smartphone, the bank or credit card company that is linked may be different, so even if you set it up, you can rarely use the bank account you own.Therefore, when using the electronic payment service on smartphones, it takes time and effort to set up and link and many people give up during registration.Security concernsNot only cashless payment but also many useful services are emerging with the development of IT, but the most important thing is the “security” when using these services.By using cashless payment, your registration information may be obtained illegally, and “fictitious billing” or “leak of personal information” may occur.Even in Japan, in the cashless payment service started by Seven-Eleven, the largest convenience store, registration information was obtained illegally, and many people were billed that they could not remember.There are few counterfeit bills in Japan, but cashless payment services are behind other countries, and numerous companies have joined the cashless payment service and some companies are still worried about security.Cashless Payments that can generally be used in JapanIn the table below, We would like to introduce some cashless payment services that can be used in Japan.Credit CardsDebit CardsContactless ICQR code Payment                        The most cashless payment method used in Japan still been the credit card payment. Although debit cards have become more popular than before, they are still rarely used, and more recently, contactless ICs and QR payments are increasingly used.ConclusionJapan is still an inconvenient country when it comes to cashless payments, although in 2019, the government also started to promote cashless payments with a strong focus. Thanks to that, the spread of QR codes payments such as PayPay and LINE Pay is accelerating to prevail.For foreigners coming to Japan from now on, please refer to the cashless payment that can be used in Japan in advance through this article.

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All About Side-Businesses for Foreigners Working in Japan!

The trend of side-jobs is getting hot in Japan now, so the number of foreign IT engineers who want to work side-jobs is also increasing.Did you know that foreign IT engineers are able to work side-jobs legally? Also, what are the conditions within the company and the residency status?Since there are detailed procedures to be done, the conditions and precautions that foreign IT engineers should follow in the case of working a side job are summarized and introduced in this article.1.Foreign IT Engineer’s Side-jobsThere are two obstacles when a foreign engineer tries to do a side job.・Does the company will allow it due to the company’s work rules?・Does the status of residence allows it?Each would be a problem.If these two obstacles can be overcame, foreign IT engineers will be able to work side-jobs, but we will explain the precautions and procedures related to employment rules and the status of residence.2.Are Side-jobs permitted under the Work regulations? Banned?Foreign IT engineers, have you ever confirmed if there are any provisions regarding side-jobs in the work regulations?Work regulations and the consequences of its violationsWork regulations are a rulebook for employees of the company, in which you can also find the provisions regarding side-jobs.Of course, it applies to employees of the company regardless of whether they are foreign nationals or not.Violations of work rules may result in disciplinary actions. Specifically, if you violate the rules of employment because you performed a side-job without authorization, disciplinary sanctions will be strictly enforced, which may go from penalty salary reduction to dismissal, which will be punished according to the degree of disruption of trust with the company. From strict caution to the reduction of wages and dismissal depending on the degree of disruption of the trust relationship with the company.Side jobs: they were mostly banned before, currently most of them are allowedTraditionally, the work regulations in Japan regarding side-jobs said that “employees were obliged to concentrate on their duties and must not do side jobs.” Thus, in some workplaces where the employment rules have not yet lifted the ban on side-jobs, to do side-jobs will be difficult.However, the work regulation that is increasing now is to “permit side-jobs that would be allowed by a permit system, under specified conditions”, and the number of cases where side-work is banned uniformly is gradually decreasing. The legal system has also been amended to make it easier to work side-jobs.Examples of what is defined in the work regulations as a condition for permitting side-jobsCommon examples of the conditions are as follows.For example, the conditions for side-jobs may be specified as follows:It is a Permission system, so you need to submit an application/Not to violate the prohibition to work for a competitor. (do not work side-jobs with companies that compete in business or markets that benefit from rivals)Not to make use of time that may affect your main job.Notify the company about what side-job you will do. The details of the report are determined, such as time and place of work, so be sure to follow them.Regularly report about the side-job.*The above contents are representative, please refer to the employment rules of the company where you are enrolled for specific contents.If the conditions about side-jobs are specified in the work rules, and if you do not meet all the conditions, the side-job will be a violation of the work rules and you will be subject to disciplinary sanctions.In particular, if you perform a side-job that favors a rival company you will destroy the relationship of trust with the company, so the disciplinary action can be as severe as being fired.3.Is It Permitted According to the Status of Residence to do Side-jobs?Foreign engineer’s side-job can be possible from the status of residence.Beware of non-qualified activitiesThe majority of foreign engineers have “technical status” as their “resident status.”Except in some cases where the status of residence doesn’t have any limitation to activities that can be performed in Japan, like the “Japanese spouse” status. Foreign engineers are, in principle, only allowed to work in their resident status. In addition, in general, if you are performing a side-job that is not a work within the qualification, you must apply for an activity outside the qualification.However, there are no restrictions on how many companies you can work with to or how long you work for a job within the status of residence. Besides, it is not necessarily prohibited to take other jobs within the scope of the “technical” status of residence.Therefore, please refer to the following examples of cases where a side-job is recognized as a job within the same qualification and cases where it is not recognized, and consider whether it is necessary to apply for “Permission to Engage in Activity other than that Permitted under the Status of Residence Previously Granted.”Examples of side jobs recognized by the status of residence “technology”・Engineers teaching programming once a week=>Employment within the scope of technical work so it is within the scope of the status of residence.・Engineers regularly contribute to the latest technical conditions.=>Accepted in the same way as the instructor, example above.・Engineer volunteers to assist an electronics workshop for children (free of charge)=>Free volunteer activities are recognized as qualifying activities.Examples of side jobs that are not recognized by the status of residence “technology”・Engineers starting their own businesses=>Starting a business is an activity recognized with a business management visa and is considered to be an activity outside the scope of the status of residence. Therefore, it is necessary to apply for permission to engage in an activity other than the permitted.・Engineers working a part-time job at a convenience store=>In principle, the simple labor of foreign nationals is prohibited, and the current status of residence is not permitted.In addition, if you stop working when you have obtained your status of residence, you should be re-employed within the same qualification within 3 months, and if you do not submit the notification within 14 days, your status of residence will be expired. You need to be careful. For this reason, when performing a side-job, it is necessary to maintain a position within the permitted status of residence.4.About the Application for Permission to Engage in an Activity Other than PermittedFor example, if an IT engineer gives a lecture at a language school, the language school lecturer is identified as “international business”, so if you apply for an activity outside the qualification, you can get permission.The following procedures are required to apply for permission to engage in an activity other than that permitted.A written application for permission to Engage in an Activity other than that PermittedPassportResidence cardYou can obtain the Application for Permission to Excluded Activities at the Immigration Bureau or download it from the Immigration Bureau website.Conditions may apply to the permission, like not quitting the main job when obtaining the permission to engage in an activity other than permitted.The conditions for permission to apply are the followings.Not to quit the original jobNot to obstruct the original jobTo do unskilled labor is prohibitedSummary of points where foreign engineers are allowed to work side-jobsFor a side job to be accepted, one of the following conditions must be met. Must be within the scope of the company’s working regulations and within the scope of the status of residence. (For employment outside of resident status, it is necessary to apply and obtain the permission.)Obtain permission for activities outside the status of residence. * Permitted if the following three conditions are satisfied.Not to quit the original jobNot to obstruct the original jobTo do unskilled labor is prohibited5.Foreign Engineer’s Side-jobs: What to Do in Case of a Problem?Even if you understand the above explanation, if the foreigners are not sure about the side-job, they want to start by themselves, consulting a person who knows the rules, an expert who knows the rules very well can save time and it can be a huge help.Accordingly, consult the following specialized departments and experts.For work rules, contact the human resources department of the company.Regarding the residence status and visas, contact a public official.Both the Human Resources Department and the public officials specializing in alien registration and visa, bilingual support is now available in many offices, which makes it easier for consultation.ConclusionAs explained above, if there are work regulations that allow side-jobs that do not affect your main job will likely be permitted. Of course, the status of residence is an issue, but if you are working within your current qualifications, or if the conditions of the application are met even if it is a non-qualified activity, you could use a permission.However, there are many procedures such as notification to the Human Resources Department of your company and notification to the Immigration Bureau.Notification to the Immigration Bureau is handled exclusively by the public official, as in the case of obtaining a status of residence, so if you do not have much time and want to reduce the office work, it may be a good idea to ask a public official regarding side-jobs.