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Bloomberg
Japan’s measures for encouraging the spread of cashless payments will likely need more funding beyond the end of March and could be extended as part of a planned government stimulus package.
The International Monetary Fund (IMF) recommended that Japan consider lengthening the time frame of its measures to support consumption after an October sales tax increase to support the economy, citing the cashless-payment reward programme among the measures.
The programme is aimed at supporting consumption in the wake of the tax hike and increasing efficiency at small- and medium-sized retailers. It provides subsidies for installing cashless-payment equipment and 5% rebates for consumers making cashless purchases at registered businesses through the end of June.
Japanese consumers still lag far behind their international counterparts in using cashless methods. The government has budgeted 280 billion yen for the year ending in March for the rebates and installing cashless-payment equipment at businesses.