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TOKYO — Cashless payments are becoming increasingly popular among high school students in Japan, with 62.1% of them having used them in the past six months, according to a survey by a marketing research firm.
Conducted in July, the survey by Tokyo-based MMD Labo Inc. gathered responses from 1,114 high school students aged 15 to 18 who have smartphones. When asked about payment methods used in the past six months, 50.8% reported using QR code payments, making it the most popular cashless payment method, surpassing contactless smartphone e-money and credit card tap payments.
Further inquiries with 300 high school students using QR code payments revealed that many utilized the transfer function, with 74.7% having used “family transfers.”
There are many cases where household transactions, such as allowance payments or reimbursements for expenses paid on behalf of other family members, are handled via smartphone.
For example, a 56-year-old Tokyo resident with a daughter in first year high school said, “I give half of her 4,000-yen (around $27) monthly allowance through PayPay.” His daughter appreciates the convenience for splitting bills with friends and doing away with the hassle of carrying a wallet. Meanwhile, her father worries, “I wonder if this convenience is actually increasing her spending.” He added, “She often uses up the PayPay allowance within about a week, and I’m concerned about overspending because it’s so convenient.”
This provided photo shows Yoko Yagi, a financial planner and head of “Kid’s Money Station.”
In this cashless era, how should we nurture children’s financial literacy? Yoko Yagi, a financial planner and head of “Kid’s Money Station,” which offers money education courses for parents and children, explains, “While cashless payments increase convenience, it becomes harder for children to understand where money comes from.”
Cash provides a tangible experience when handed over, but cashless transactions are merely numbers on an app screen, diminishing the sense of handling money. This often lowers the psychological barrier to spending compared to cash.
Yagi advises, “To instill a sense that this is indeed money, it’s preferable to start with cash allowances.” However, the rapid spread of cashless payments can lead to high school students using deferred payment services without parents knowing, potentially resulting in financial trouble.
“Build an open relationship where parents and children can talk about money, creating an environment where children can seek advice when they face difficulties,” Yagi says.
(Japanese original by Yuta Kumamoto, Digital News Group)