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Japan’s Mobile Tech Too Quirky To Succeed Overseas?

For all of the cutting edge mobile technology that Japanese consumers have routine access to, surprisingly little of it has made its way outside of the country. Its government, however, wants to change this, and will begin an “aggressive push” to market the technology overseas, reports AP.

One of the big questions, however, is how much of the country’s technology can be exported. In Japan, it’s common to have high-speed access to the web, to watch and record TV broadcasts, and to pay using a mobile phone. But as Masayuki Ito, official at the Ministry of Internal Affairs and Communications acknowledged, “Some critics say Japanese mobile technology tends to be quirky like the Galapagos Islands,” that is, the country’s isolation has given it very domestic-specific technology.

One of the products Japan hopes to flog is the technology behind the FeliCa wallet phone, which debuted in 2004, and is now a standard feature in most Japanese handsets. Instead of a smart card, which is how most popular mobile phone payments work in Europe, a tiny chip called FeliCa, partly developed by Sony Corp (NYSE: SNE). is embedded into the phone. Some analysts believe, however, that the success of mobile payments in Japan is down to low credit card use in the country, as well as the popularity of convenience stores and vending machines.

Still, there’s little choice for Japanese carriers and manufacturers, who are backing the government initiative. The new campaign comes at a time when the saturated domestic handset market has begun to decline, hurt by carriers who have cut phone subsidies in favor of lower tariffs and better service, and by increasing consumer fatigue over more complex technology.

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Aug 19, 2008 4:33 AM ET

Posted In: E-Commerce, Payment Systems, Gadgets, Technologies / Formats, Companies, DoCoMo, Countries, Asia

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Comments (2)

Aug 20, 2008 1:35 AM

not sure i see how Felica is poised to compete in the US.  they’re up against VISA/MC which already have Blink.  seems like this is a press release more than really a big new product push. 

i think both VISA/MC offer newer credit cards that have Blink which is a tiny RFID chip.  you can use it at the supermarket, gas station, etc… wherever a merchant has a newer blink enabled card authorization terminal.  i have Chase BLink enabled debit and credit cards.

thoughts?

BP

Aug 20, 2008 8:48 AM

Hi BP—Looks like they are targeting more than the US. Plus, I think with Visa Blink you still have to carry your wallet as its a credit card. FeliCa technology is on a chip that gets embedded into the phone itself, so you can wave your phone at a payment point. I know that Visa was trialling this, but don’t know whatever came out of their tests. Anyone?

Dianne

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