The widespread proliferation of electronic money hinges on convenience that transcends that of existing financial services. This convenience is not a replacement for the street corner ATM or convenience store, but rather qualitatively different in that it is part and parcel of the digital lifestyles of consumers.

Until now, financial institutions have gone to great pains to mechanize financial services. But financial services in the digital age must go beyond this to meet the needs of digital natives. This is perhaps best exemplified by person-to-person (P2P) services—namely the transfer of funds between individuals—that are conducted via the Internet.

Now is the time, not to be myopically focused exclusively on improving the bottom line by reducing costs, but rather for players to strive to effectively expand the top line and grow brand value. There is a distinct possibility that electronic money will play a central role when it comes to information and value transfer in the digital age.

Bloomberg: Apple’s Fight to Lure Japanese From Cash Starts at Turnstile

This area is explored in depth in the Celent reports:

Payments Systems Trends in Japan, Part III: Blueprints for the Next-Generation Zengin System

Innovation in the Japanese Financial Services Industry: Retail Payments