payment options in asia

[rhodopsin]

"Credit card use in Asia is quite low compared to other areas. It's still not that high in Japan, and yet they have a thriving online e-commerce market. They just pay in different ways (wire transfer, COD, etc.)"

I was wondering whether you could tell me a bit more about how e-commerce works in asia. So, credit cards - not really.

In japan they use wire transfer. Is this the same as a bank transfer? How does this work? Are there third party processers that mediate these kind of transfers? Or is it all done by the two parties themselves just by exchanging bank details?

Do they use western union type services? What is COD?

[bill]

Wire transfer is just a transfer of funds from one financial institution to another. They transfer money from their account to your account and the bank takes out a processing fee. They have a system in Japan that facilitates this among Japanese banks. It's one of the most common ways of making payments.

COD = Cash On Delivery

[rhodopsin]

Can you recommend any references on this kind of thing in Japan - where it would tell me a bit more about how the process works and how I would work with it on my site?

[a2ztranslate]

Rhodopsin, do u have a Japanese bank account at one of the major banks there? Or Citibank in Japan? If so you can present this information to the consumer; Japanese are very familiar with doing bank transfers to local Japanese banks, all you need to provide are the standard account details. We have found that asking consumers to transfer to overseas banks does not work so well. That said, we still get more orders overall via credit card ex Japan.

[rhodopsin]

"need to provide are the standard account details"

Thanks mate for your reply. I dont have a bank account in japan - but am going there in a few days so may well open one. I will only be on a tourist visa - so may run into probs. But maybe i will be ok.

The thing is though mate - are you happy having your bank details up on the web? Do you post it up on the site - or do you send the details in an e-mail when customers enquire about the product?

It is not even like I will have a company account - my actual personal name and account number etc. will be there for all and sundry. Is this standard practice with Japanese web sites?

Why do you think Japanese dont like transfers to overseas banks. Are there extra charges involved? I have an account with korea first bank in korea - do you think this would put them off. Especially as they may look down on korea a bit.

Did you say that most of your customers use credit card anyway? Do you know the percentage of people in Japan that own a credit card?

[imidazole]

Hi,

I am using Ikobo for 3 months now.
I get receive payment almost instantly via Visa Electron debit card..AWESOME!

[edited by: bill at 11:50 pm (utc) on Oct. 23, 2004]
[edit reason] snipped URL [/edit]

[rhodopsin]

thanks for the info on ikobo - it looks really good. The only thing is - do they have a site in any other languages apart from English. For instance a Japanese site? That would be really great.

I have looked around their site a bit but couldnt find any other languages. Do you know?

Once again mate - many thanks.

[bill]

That company's site is all in English and so you would run into the same problems with them that you have with PayPal. Their service may be fine, but that doesn't look like a solution to your problem. I think we've covered most of the basic ways to handle payment, at least in Japan:

• Credit Card
  
• Wire/Bank Transfer
  
• C.O.D

Any other suggestions?

[David_M]

Convenient store payment
[netprotections.com...]
(in japanese) I think they also handle credit card transactions. However their service fees look high.

[rhodopsin]

David_M

Thanks for the post - seems like a really innovative concept that i would never of thought of. I would really like to learn more about it but cannot speak japanese - i am just going to get an online translation of that site - but as an extra - do you know if they have an english site? Or if there is a site in english that explains how this kind of thing works. I realise the irony - now I have the oppisite problem. I want a japanese site in english. When will I be happy?

I realise the dificulties of running a japanese site when i dont speak japanese. But i am soon to have a japanese guy on board. Fingers crossed anyway. there is some uncertainty about it. Also i am moving to japan soon which should help a lot. Just got back from being there (and in s.korea) for 4 months and really loved it. But want to get as much up and running before i go back.

Bill - good to hear from u. I was very interested in your bank transfer post. But am still aprehensive about having personal bank details up on the web. Do u not mind? Do you know any good resources that discusses payment options (particularly bank transfers for e-commerce) in Japan (or Asia more generally)?

Once again many thanks guys.

[itisgene]

It is very safe to post bank details on your web site in Japan and Korea. The online money transaction requires more than just account and name. Many people can pay directly from your bank to another's bank instantly at reasonable price(usually $0.30 - $2.00 in Korea). Merchants love it because it is an instant cash transaction without 2-4% of credit card fees.

customers feel much safer by using the bank transfer because you don't have to give any bank details to the seller.

You go to your bank web site or use mobile phone to pay directly and instantly to the seller.

Some sellers in Korea even give 5% discounts on the bank transfer over credit card transactions. Because sellers can cash out the funds immediately without waiting over a month.