Business JR East to add QR code payments to Suica app

[thomas]

JR East is preparing to introduce QR code payment features to its Suica app by around autumn next year, aiming to expand its business into financial services. The company, known as JR East, first launched the Suica smart transit card in 2001 for travel around the Tokyo area, and its use has since spread to retail and digital payments, including a mobile version. At present, Suica users need to preload funds onto their cards or mobile apps, but the company is exploring ways to allow direct linking between Suica accounts and external bank or credit card accounts. JR East intends to build and operate the new payment system itself.

[...] the company also plans to add the ability to distribute coupons and deals for use at its own facilities, and will allow users to receive money from local governments. The card may also be linked to other local promotional activities. The number of Mobile Suica accounts has tripled over the past five years, reaching 34.22 million as of March. More than 2 million retailers across Japan accept Suica payments, and over 300 million transactions are processed monthly. Right now, the maximum amount that can be added to the card is 20,000 yen ($130), but the balance limit for the Mobile Suica smartphone app will be raised. The maximum is expected to be raised by several hundred thousand yen.

Increasing the maximum balance would likely strengthen the overall Suica network. So far, the cards had mainly been limited to covering transport fares and small everyday payments, but the company intended to broaden their use. The plan was to make Suica more convenient for larger purchases, including at Lumine and other upscale shops located within JR East-operated shopping complexes.

Paywall alert:

Japan rail company to add QR code payments to Suica fare app

JR East will also raise balance cap to compete with PayPay

asia.nikkei.com