Article Highlights

Key Takeaway:

Japanese public transit operators have been adopting open-loop payments at a faster pace over the past few months–or have plans to do so soon–at least for trials. That includes three major subway operators. But the main open-loop holdout is also Japan’s largest transit operator by far, JR East. An in-depth look at the market.

Key Data:

• Table: Key open-loop projects in Japan

• Document: Most recent financial report, JR East, April 2024

Organizations Mentioned:

• Tokyo Metro
• Toei Subway (Tokyo)
• Osaka Metro
• JR East
• JR Kyushu
• Sumitomo Mitsui Card
• Quadrac
• Sony
• Visa
• JCB
• Mastercard
• American Express
• Discover Financial
• China UnionPay
• Izuhakone Railway

Japan has been perhaps the most notable holdout among developed countries in resisting the move to open-loop fare payments.

There are some signs that this is beginning to change, however. Three major subway operators plan to at least trial open-loop payments soon or have already started.

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