Japan’s push for a cashless government

While digital payment methods have become deeply ingrained in everyday life, government transactions, such as paying fees for administrative procedures, remained largely reliant on outdated methods like cash and revenue stamps. This discrepancy highlighted a growing need to modernize these processes, prompting the enactment of the Cashless Act in November 2022.

The Birth of a Solution: The Government Common Payment Platform

The Cashless Act provided the legal bedrock, but a robust and unified system was crucial to effectively implement its principles. This need led to the development of the “Government Common Payment Platform,” a centralized system designed to facilitate cashless payments for administrative procedures across all levels of government. Launched in April 2023, this platform signaled a monumental shift towards a more efficient and user-friendly system.

Breaking Barriers: Speed and Agility in Government Development

One of the remarkable feats of this project was its remarkably rapid development cycle. Launching a complex system like this within a mere six months is virtually unheard of in the realm of government projects. This agility can be attributed to several key factors:

• In-house Expertise: The Digital Agency’s in-house team of skilled engineers allowed for direct control over the development process, bypassing the lengthy and often cumbersome traditional route of outsourcing.
• Streamlined Budget Allocation: The agency’s structure facilitated a more agile budget allocation process, significantly reducing the time required to secure funding for the project.
• Close Collaboration with Payment Providers: Close collaboration and efficient communication with payment service providers streamlined the integration of payment gateways, ensuring a seamless user experience.

This streamlined approach demonstrated a significant departure from the usual bureaucratic hurdles associated with government projects. It set a precedent for future endeavors, proving that agility and innovation are indeed achievable within the public sector.

Accomplishments

The initial release of the Government Common Payment Platform enabled cashless payment for some administrative procedures by using the My Number Portal. Two-dimensional code payments (PayPay, d Pay, au PAY) were supported during the first year of operation. At the beginning of FY2024, 22 municipalities have been using the payment platform.

At the end of April 2024, credit cards (VISA, Mastercard, JCB, American Express, Diners Club) were added to the platform.

Rewards and Challenges: The Path Forward

The launch of the Government Common Payment Platform marks a significant milestone, but the journey is far from over. Going forward, these will be the key priorities:

• Expanding Functionality: Plans are underway to extend the platform’s capabilities to encompass payments to the national treasury, further consolidating and streamlining government financial operations.
• Ensuring Security and Reliability: As the platform handles sensitive financial information, ensuring its security and stability remains paramount. Continuous monitoring and enhancements are crucial to maintaining public trust.
• Attracting and Nurturing Talent: Realizing the full potential of this transformative project necessitates attracting and retaining a skilled and dedicated workforce.

To this end, the Digital Agency is actively seeking individuals with a passion for innovation, a strong understanding of finance, and a commitment to public service.

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