Being a different cultural market, the Japanese consumers preferred to manage their transactions in cash in the last decade. However, the scenario is changing rapidly; with the government’s push towards the digital economy, leading FinTech companies are showing interest in establishing their presence in Japan. Even though preferences have changed recently, PayNXT360’s recent survey indicated that more than 35% of consumers usually conduct cash-based transactions in 2021.
Google set to acquire Pring to capitalize on the growing trend of cashless payments in Japan
Since 2015, Google has been offering its smartphone payment business – Google Pay, in Japan. However, to capitalize on the growing trend of cashless payments in the country, the company announced that it would acquire Pring, a Tokyo-based cashless payment and settlement startup. The acquisition, which is expected to cost Google between US$180 million and US$270 million, will allow the IT giant to gain a substantial foothold in the growing financial services space in Japan.
Once the Pring acquisition is completed, Google will offer Japanese consumers a wide range of services, including payments and transfers nationwide, by next year. It is anticipated that the services will be similar to what Google offers in other countries such as the United States and India. Notably, users of the Pring app can make cash transfers, payments, and withdrawals on their mobile devices and laptops.
The acquisition of Pring by Google comes at a strategic time when cashless payments are gaining momentum in the country. Moreover, PayNXT360 expects the entry of Google in Japan to mark a significant shift for the country that has been largely resistant to digital payments.