Is 'demonetization' happening in Japan like India, vending machines have become the enemy, know why the Japanese are afraid of cashless payment

New Delhi: It was the year 2019, when a payment service in Japan was hacked shortly after its launch. Since then, the Japanese have been very tense about cashless payments. Actually, some extra money was deducted from the accounts of those who shopped with this app. That too without their prior permission. This scared the Japanese so much that they stopped cashless shopping. At that time, about 5.5 crore yen were stolen from the accounts of just 900 users. Since then, the Japanese have been afraid that making cashless payments from mobile can be very dangerous. Recently, the trend of new yen notes has started in Japan. The biggest crisis regarding this is looming over the vending machines, which will have to be changed. It is believed that like the demonetization in India, this 'demonetization' of Japan will put people in trouble. Let's understand this.

Japan is the vending machine capital of the world

There are more than 55 lakh vending machines in Japan. This means that there is one vending machine for every 23 people in the country. The popularity of these machines can be gauged from the fact that the Japanese, who have given the world various kinds of robots, want convenience at any cost. The ever-increasing and successful growth of vending machines can also be understood from the decrease in population. In many rural areas, even employees are not available to work in small shops or sweet shops. Japan is called the vending machine capital of the world.

Vending machines taking orders in restaurants

In many restaurants, customers place their order and pay in cash at a vending machine. They get a small paper ticket that they give to the person behind the counter who prepares their food and delivers it to their table. This way the person preparing the food never has to touch money and the cleanliness of the restaurant improves a lot.

There is a demand for both hot and cold drinks

In Japan, where temperatures can range from 40 degrees to minus 10 degrees Celsius, there is a demand for both refreshing cold and refreshing hot beverages depending on the place and time. Japan has developed its own efficient vending machines that make both cold and hot beverages in the same machine using energy-saving thermo recycling technology. The graph below shows how cashless payments in India compare to the world.

Vending machines sell everything from eggs to salads

Vending machines are around the world, but in Japan the size of this business and its logistics are so big that farmers' markets have opened, where everything from free eggs to salads or fresh fruit is sold from vending machines. In Japan, cigarettes and beer are also sold from vending machines.

Hot food for home is also prepared in these machines

Many people in Japan live alone and work long hours, so often the last thing they want to do after arriving home is cook a hot meal. This seems like a very difficult task for them. In such a situation, these vending machines also fulfill this need of the people. Many fast food and hot meals can be purchased and prepared within 60 seconds on the roadside or train platform across the country.

The Japanese love paper currency

Japanese people love paper currency. A survey conducted by Statista in 2020 states that fear of personal information leakage, credit card theft and misuse, and overspending on credit cards are the main concerns when using cashless methods of payment. This is why cash is still king in Japan.

The crisis may increase with the release of new notes

Many people have faced problems due to the release of new notes. Many existing vending machines in Japan will now be out of circulation. Either they will have to be replaced completely or a huge amount will have to be paid to upgrade them. In 2016, old notes of 500 and 1000 rupees were replaced in India, due to which people in India had to face a lot of problems. This also became a big issue in the elections.

Will the traders be ruined?

The cost of upgrading these machines will have to be borne by the traders themselves. It is believed that the cost of buying new machines can be up to $19,000, which can break the back of small traders who are already struggling with increased inflation and bank fees.

Why was this decision taken, what are the arguments

Policymakers say this was a necessary step to prevent counterfeiting. The new notes will increase financial security in the country. Another rationale behind the decision is to facilitate increased cash flow in the economy. Takahide Kiuchi, an executive economist at Nomura Research Institute and a former member of the Japan board, said the introduction of banknotes is expected to have an impact of more than 1.5 trillion yen on the country's economy, boosting GDP by about a quarter of a percent.