I recently came back from an extended stay in my other home, Tokyo. While there ,we did the usual daily things: ride the train, buy groceries, get lunch, eat sushi, watch Godzilla movies (well, okay, just once). Here’s the thing: we only used a credit card maybe 3-4 times over 10 days, and used actual cash even less. Everywhere we went, we used our Suica card.
This thing is metal, the size of a credit card, and uses contactless RFID to talk with whatever cash register is nearby. Japan Rail started using Suica on the train wickets 10 years ago (traditionally, the choke point of inefficiency in any station) in order to speed people through before they get packed in like sardines (you’ve seen the pics before, and yes– it’s true). From there, it soon spread to the convenience kiosks on the platform, the convenience stores next door, and now looks pretty ubiquitous anywhere within a kilometer of the station (which means everywhere except your grandma’s house).
Visa and Mastercard never got very far in Japan (compared to marketshare in the US). JCP (a Japan-specific credit card) had a good run, but looks to be shrinking to second-class status like Discover Card. Cash was always king: I used to walk around with the equivalent of $500 in my back pocket; most Japanese had $1000 on them at any given time. Big cash + crowded trains = pickpocket’s dreamland. I couldn’t ever figure out why crime was so low.
But enter the Suica– it’s got both Cash and Credit Cards beat:
- can be loaded up with credit via monthly automatic deposit, cash in an ATM, or even cash-back from some POS
- personally stamped with your daily commute route
- same size as a credit card
- no numbers or identity to be stolen
- MUCH MUCH faster than a credit card transaction
That last point is the killer. To buy anything, all we had to do was tap this thing inside a circle on the glass counter, as if we were beknighting the transaction, done. Meanwhile, a credit card requires a swipe, a printout, the hostess signing the receipt, and we (the buyer) countersigning. I know that some US places are just accepting the one swipe under a given amount (no signing required under $25 or so), but it’s still slower.
My prediction: Suica or other RFID cards are coming to the US soon (some are already here). They’ll take a good chunk away from Visa corporation, especially in mass-transit towns like Boston, NYC, DC, and/or San Francisco. My money is on Boston or San Francisco, especially if they can figure out a way to build community-centric bullshit around the card.
If I were Yelp, I would be teaming up with JR on bringing a branded card to SFO right away.
I am not sure if it is a show of weakness, or just another table-upsetting play by our old friend 
Well,
As goes Tokyo, so the rest of the world will follow. This is hard to swallow for women’s fashion, but it certainly holds true for cell phones, personal electronics, and violence comics. I’m in Tokyo, and here’s my prediction: the laptop’s days are numbered.
I promise I'm relevant 
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