Japan's tech giant Fujitsu is set to facilitate the first trial of a person to person (P2P) money transfer between individuals in Japan.
Japan’s tech giant Fujitsu is set to facilitate the first trial of a person to person (P2P) money transfer between individuals in Japan. The trial will involve Japan’s three biggest banks, and it will sit on the blockchain technology.
In essence, Japan has the lowest rate of digital payments compared to China and South Korea. 19 % of individuals in Japan have embraced mobile money, while in China this figure is over 50 %. That is why the Japanese government rolled out a growth strategy that looks to double the adoption of digital payment. The solution could be the blockchain technology. This approach is expected to push digital amounts to over 40 % by the next decade.
First off, the real-world cashless transfer simulation between the three of Japan’s megabanks will provide a boost for that initiative. In its latest announcement technology firm, Fujitsu revealed that it had rolled out collaboration between Mizuho, Sumitomo Mitsui and Mitsubishi UFJ Financial for a person to person cashless transfer.
Fujitsu is currently perfecting the cloud-based blockchain platform to enable a seamless P2P money transfer between the banks. And that is just the beginning; this IT firm is also a working on a smartphone application that will enable users to send and receive money, and deposit and withdraw.
Both the blockchain technology and the app will be linked to an individual’s bank account, and to all the three banks. So what does Fujitsu aim to achieve with this trial? A cashless P2P transfer system needs to be user-friendly, expedient and allow transfer of all types of currencies. Through the simulation process, Fujitsu will be able to verify the reliability of the system. Starting with the three mega-banks, Fujitsu will evaluate and plans how such a system can be rolled out on a large scale.
The tech company plans to complete developing the blockchain platform in December this year. Fujitsu will launch the trial in January 2018 and will last for about three months. Fujitsu has in the past successfully used the blockchain technology in its transactions in partnership with Muzho.
Apart from Fujitsu’s initiatives, the Japanese Bankers Association is also working on a standard blockchain platform associated with the money transfer trials as a future upgrade for current countrywide payments clearing podium.