Payment Systems Trends in Japan, Part I

Financial Market Infrastructure Trends in Japan and Around The World
by Eiichiro Yanagawa, November 29, 2013
Industry Trends
Asia-Pacific

Abstract

The Japanese payments landscape is uniform and lacks global competition. With the trend towards mergers and acquisitions and increasing globalization, this environment will shift over time.

In the report Payment Systems Trends in Japan, Part I: Financial Market Infrastructure Trends in Japan and Around The World, Celent examines the current situation and future outlook for the Japanese market in light of recent changes in Europe.

“The global payments system offers a borderless, regionally integrated regulatory and competitive framework that encourages innovation among payment service providers,” says Eiichiro Yanagawa, Senior Analyst with Celent’s Asian Financial Services Group and author of the report. “In contrast to the dramatic changes in Europe, the Asia-Pacific region remains calm for now.”

This report, the first of two, proposes a conceptual framework for payment systems in Japan. The report provides an overview of global payment trends, reviewing the history of Japan’s payments system and concluding with an evaluation of the performance measures in place at the time of the financial crisis and an outlook for the future.

Part 2 explores the next-generation Bank of Japan Net (BOJ-NET) Funds Transfer System, discussing national initiatives to build a sustainable and robust payments system in addition to looking at payment services providers.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

Introduction

4

 

Payment Services and the Payment Systems

4

Global Trends

11

 

Principles for Financial Market Infrastructures

11

 

CPSS Member Countries

14

 

CPSS Member Countries’ FMIs

17

 

Asia-Pacific

18

 

EMEA

25

 

The Americas

34

Payment Systems Trends in Japan

40

 

Overview of the Major Payment Systems

40

 

Payment Trends Among Major Payment Systems

43

 

Payment Systems

45

 

Payment Settlement Systems

50

Lessons of the Crisis: The Importance of a Robust Payment System

54

 

Domestic Securities Settlement

55

 

Foreign Exchange Settlement

56

 

A Robust Payment System

56

Toward Part 2

60

Leveraging Celent’s Expertise

61

 

Support for Financial Institutions

61

 

Support for Vendors

61

Related Celent Research

62

Sign in to download reports and access personalized information