Square Mobile Payment will face the difficult situation

***Updated on June 25. Information of situation in West Japan added

There are a lot of companies that are successful to open up its first overseas operation in Tokyo, such as McDonald, Starbucks, Yahoo!, you name it, despite of its odds predicted before its opening.

But this time may be different. Square's effort to go into the payment market in Japan will face difficult situation. Because so many consumers in Japan are now using NFC payment card, typically issued by railway company.

1) Suica issued by JR East

 One of the most prevailed payment card is 'SuiCa', issued by JR East. The number of the issued cards has reached to 42 millions, and you can use this Suica at more than 200,000 retail shops. (as of Jan. 2013) So, Square may beat credit card. But credit card is not so much used in Japan in the first place.





Suica once tried to become Mobile Suica about 7 years ago. But it became obvious that people love credit card sized NCF payment card, which you can put in your wallet.


2) ICOCA issued by JR West

JR West also issue the NFC cards which is called ICOCA, similar to Suica for JR East. ( ICOCA sounds 'Let's go!' in Japanese.) They have issued 7.44 million cards as of Dec 2012.
(I found this is way smaller than Suica.)



JR group used to be government owned railway company.

3) PASMO issued by private railway companies

Private railway companies also issued NCF cards, called PASMO, which also has been isseud 20 million cards as of May 2011.