 08-Jan-18, Nikkei Asian Review

If you go out for drinks with your colleagues in Japan, chances are that you end up doing warikan, or splitting of the bill evenly, most likely in cash despite almost everyone having plastic and electronic money in their wallets. Thanks to this die-hard affection for cash, Japan loses over JPY2 tn (USD17.6 bn) every year.

Image: BCG

The Japanese are one of the most cash-loving peoples in the advanced world. About 65% of payments in Japan are settled in cash, more than twice the average 32% among other rich economies.

The reason seems straightforward. The greater the demand for cash, the more ATMs banks install. The better the access to cash, the stronger the incentive to use cash.

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 Financial Services insights