Not just credit cards, the changing world of "postpay" March 4, 22:10
"Postpay" is a credit card, but new "postpay" is spreading.
"BNPL" = Buy Now Pay Later-Buy now and pay later-.
Use your smartphone to quickly settle within the limit.
The procedure is simple and easy to repay, which is now gaining the support of the younger generation.
In this trend, the original / postpaid = credit card has also started to move.
"Postpay" is about to change dramatically.
(Hiroki Okaya, Reporter, Ministry of Economic Affairs)
New "Postpay" Appears
Moeka Kawai (37), who lives in Kawasaki City.
Smartphones are usually used for payment.
However, payment is not for each purchase, but for "collective payment at a later date".
From online shopping to supermarket shopping, many use "postpay service" = "BNPL".
Mr. Kawai
"I used to use only credit cards, but now I rarely use them.
I use two postpaid services, and I also use them to buy dinner and contact lenses."
The situation at the store is the same as for smartphone payments.
You can pay from the app or read the QR code to make a payment.
However, the actual payment will be from the next month onwards.
A limit is set, and the total amount of purchases made in one month will be paid in the following month or later.
"Then, isn't it just like adding a smartphone payment and a credit card and dividing by two?"
That's right.
However, BNPL is spreading rapidly in the world.
It can be used for online shopping such as Amazon, and is establishing a certain position overseas as a payment method instead of credit cards.
Usage is starting to increase in Japan as well.
According to a survey conducted by Mercari, a major flea market app company last year, about 30% of men and women in general use the postpaid service, especially in their 20s and 30s.
Why is BNPL growing now?
Let's sort out its features.
BNPL 3 features
(1) Easy to manage money
(2) Easy procedure to start using
(3) No fee (in case of lump-sum payment in the next month)
Features (1) Money management
Kawai, who uses BNPL, says, "It's easier to manage money."
Mr. Kawai was worried about overuse, but he is using a service that allows him to freely set the limit, and he has set it at "30,000 yen a month".
He says that the more money he spends, the less gauge he has, and the more he can visually recognize the balance.
Here is the screen.
You can easily see the history of when, what, and how much you used from the app, and you can easily select the timing of postpay.
For example, if you have extra income, you can repay it immediately, which is said to help reduce unnecessary expenses.
Mr. Kawai said, "I like the fact that it can be used flexibly. I was worried that the maximum amount would be too large for a credit card, but now I can manage my money systematically."
Features (2) Procedure for starting use
The procedure to get started is easier than with a credit card.
For example, when making a credit card, you need information such as "annual income" and "occupation" in addition to documents to verify your identity.
But BNPL does not need this information.
Based on purchasing data on the Internet, AI = artificial intelligence "payment power" = how much can be used, etc. are determined and set.
For example, in the case of services provided by Mercari, AI sets usage limits based on data such as payment and transaction status on flea market apps.
It is said that the latest data is reflected and the limit may be higher for college students than for working adults.
Features (3) Fees
With BNPL, there is no fee if you pay in one lump sum the following month.
There is also a service that allows you to purchase products with no fees even if you pay in installments.
In addition, some online shopping can be used simply by entering a phone number, which saves you the trouble of entering credit card information.
Successive entry of each company
In Japan, not only payment companies but also major flea market apps and convenience stores have entered the market.
Each company has its own uniqueness.
Of these, Paydy is available on Amazon, and the installment fee is free up to 3 times.
It attracted attention because it was acquired by overseas payment giant PayPal for 300 billion yen.
Net Protections is a long-established store that handles postpaid payments in excess of 400 billion yen annually.
The "atone" provided can also be used at convenience stores and other stores by using a QR code.
The feature of Mercari and FamilyMart is that they are linked with payment services such as Mercari and FamiPay that they provide.
PayPay, which is a QR code payment, also uses credit card screening, but we started a postpaid service in February.
Competition is fierce in Japan as well.
The key is data analysis
There is no examination like a credit card.
In that case, there may be many troubles such as the required amount not being paid even if the deadline is reached.
I am worried.
However, there are cases where the percentage of such "unpaid" is extremely low.
The unpaid rate of Net Protections, which is the largest in this field introduced earlier, is 0.53%.
It is said to be a low level compared to credit cards.
Why is there no examination?
The key lies in data and analysis technology.
This company analyzes the past transaction data of 300 million cases and judges the payment power of each user.
In addition, if it is determined that there is a high risk of payment delays, such as by identifying products that are often unpaid, we have introduced a mechanism to prevent transactions.
Data isn't just used to determine if a postpay is certain.
It is also expected to be used for marketing, such as store campaign information that matches the shopping tendency of users and benefits for repeaters.
Also a new "credit card"
The momentum of BNPL has begun to transform the credit card industry.
According to a survey by a major JCB, the percentage of men in their 20s who own credit cards is about 70%, which is more than 10 points lower than the average for all generations.
Now that BNPL is beginning to spread around young people, start-up companies in Tokyo have embarked on offering new credit cards targeting the young people.
The maximum usage limit for this credit card is 100,000 yen.
It's never expensive.
However, it is designed so that you can repay at any time you like.
And if you repay it, the remaining amount that can be used will be "revived" each time.
It is said that basic information such as name and address and identity verification with a driver's license etc. are required for the examination to have a card, and information such as work place is not required.
The aim is to attract young people by lowering the hurdles for judging.
Last year, the standard of the installment sales method was revised, and it is now possible to provide credit card services for small amounts without information such as income.
President Nudge Okita
"I want to solve the bottleneck of not having a credit card and having trouble applying, and I want to expand it as a card especially for young people."
By next year, we are aiming for 250,000 members and monthly transaction volume of 10 billion yen.
Also note
A postpaid service that is about to change dramatically.
While the number of users is increasing, saying "this is convenient", I am worried that I will be carrying a lot of debt.
What do experts see in this regard?
Toshio Taki, director of the Fintech Research Institute, who is familiar with the movement around payments, points out that while the market is expanding and becoming more convenient, a mechanism to protect users is also needed.
Even if each payment of BNPL is a small amount, if you use multiple services, the total usage amount will increase and there is a risk that you will not be able to repay.
Taki Fintech Research Institute Director
"Overseas, there are movements to regulate BNPL.
When the number of services used increases, it is necessary to prevent the situation from becoming a" small amount of multiple debt ".
Since postpay is a debt, it is just a debt.
Creating peace of mind from the perspective of consumer protection, such as a mechanism that allows us to properly grasp the usage status from data, is essential for future growth. "
Reducing the adult age will reduce the age at which credit cards can be used.
And some of the postpaid services are available to minors.
With the expansion of online shopping, the postpaid service is likely to evolve more and more.
BNPL was born from the advanced digital technology of data analysis.
In addition to ease of use and convenience, how to create a safety net that provides a sense of security and protects users ...
I would like to see trends from that perspective as well.
Hiroki Okaya ,
reporter of the Ministry of Economic Affairs Joined the station in
2013.
After working at the Kumamoto station, he is currently
in charge of the information and communication industry.