CASH is king in Japan, and more so for the country’s fast-aging population who are still deeply reluctant to give it up.

Prime Minister Shinzo Abe’s push to make more Japanese, the world’s most dedicated cash-hoarders, switch to using cashless payments is producing some success, but not nearly as much as desired.

A growing rank of the nation’s elderly pensioners are resisting change, which could see Japan fall further behind its peers in adopting mobile app payments and electronic money.

Tokyo wants to double the ratio of cashless settlements to 40 percent by 2025 and to 80 percent eventually to spur labor productivity.

Japan pales in comparison with other countries — 96 percent of transactions in South Korea and 66 percent in China are cashless, data by an industry lobby Payments Japan Association show.

The transition to digital transactions will help Japan cope with a shrinking population and a tight labor market. Cashless payments will also allow stores to automate sales estimates and banks to cut back on costly automated teller machine networks.

Shoppers were recently encouraged to ditch cash for e-money after the government sweetened the deal by introducing a rebate program to ease the pain of a sales tax hike Oct. 1.

Funded by US$2.57 billion earmarked for subsidies, shoppers get a refund in the form of points if they use cashless payments at small shops and convenience stores.

Big tech firms have responded with aggressive campaigns to promote their e-money payment systems.

Some have met with initial success. QR code payment app PayPay saw memberships jump 5 million since August to 15 million, thanks in part to the government’s campaign.

(SD-Agencies)