Is Square’s Move Into Japan A Smart One?

Is Square’s Move Into Japan A Smart One?

Mobile payments platform Square have made a move across the Pacific to tackle the Japanese small business market in a move that's similar to PayPal's tactics earlier this year.

The card reading device that plugs into any smartphone or tablet has meant that many small businesses can make use of credit and debit card payments.

Seeing as the situation in Japan hasn't changed a whole lot since PayPal Here arrived in the region, Square has all to play for – especially now the Japanese marketplace has adopted the iPhone so readily.

There's still competition from mobile providers like NTT Docomo, but the Japanese marketplace may well be the key problem instead.

There are many, many small businesses in Japan but they're mostly well-established and so very set in their ways. The Japanese economy and its lack of capital is also another reason why there aren't many new businesses springing up across the island nation.

There is hope though thanks to Japanese prime minister Shinzo Abe making plans to encourage entrepreneurs into the country. He wants to encourage a new generation to break through the stagnating corporate culture and create small businesses and upstarts to inject the much needed flavour into Japanese small commerce.

Understandably, this could be beneficial to Square in a big way so getting into the region now would mean they could establish themselves as the small-business payments platform.

Currently Japanese businesses will pay a 3.25 per cent commission on payments – .5 per cent more than those in the US.

 

If you're interested in the payments space in Asia and the growing opportunities that are prevalent in the area, come along to Total Payments Asia where a whole manner of payments technologies will be shown and discussed to help you make the most in the region.

You can download a prospectus for free here >

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