- 14 Mar 2002
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I feel the guiding hand of Kono Taro: Japanese businesses will soon be able to pay salaries into app accounts!
As Japan slowly shifts away from cash, the government is expected to allow businesses to pay salaries into cashless payment accounts, which have gained widespread use in the age of the smartphone. A subcommittee of the Labor Policy Council, which advises the labor minister, discussed the so-called digital salary payments at a meeting Tuesday. At the meeting, the labor ministry presented a plan to put a ¥1 million cap on the amount of digital salary payments that can be made at one time and the balance of funds in cashless accounts used for such salary payments.
Japan to allow businesses to pay salaries into app accounts
Designated service providers would be required to allow digital salary recipients to withdraw cash for free at least once a month using automated teller machines or through other means.
Under the plan, companies will be allowed to pay wages to cashless accounts such as PayPay, d-barai, or Rakuten Pay. Operators of such digital accounts are called money transfer business operators. The balance in an employee's cashless account will be capped at 1 million yen ($6,923). Any amount beyond the threshold will be paid the usual way, including through the employee's bank account. Digital wage payment enables employees to use cashless payments without depositing funds into their digital accounts. Foreign employees may be able to transfer funds to those in their home countries with lower fees through digital accounts compared to traditional bank accounts.