#Japan #Digital Transformation #Tokyo #Local Economy #Premium Vouchers

New Report on Local Currency and Premium Vouchers: Aiming for Digital Transformation

The General Incorporated Association for Local Government DX Promotion has released an insightful report entitled "Local Currency and Premium Voucher Actual Survey Report." This extensive document summarizes findings from a nationwide survey aimed at understanding the current situation and challenges faced by local governments in implementing regional currencies and premium gift certificates. The analysis is particularly crucial as many areas of Japan grapple with the pressures of an aging population and rising costs, issues which are highlighted as significant barriers to successful digital transformation.

Purpose of the Survey

The survey, conducted from late September through October 2024, aimed to gather information on the operational status and challenges related to local currencies and premium vouchers. By spotlighting these issues, the report intends to foster efficient revitalization of local economies through digital transformation, while offering necessary support to municipal initiatives.

Key Findings of the Survey

Implementation Status of Local Currencies

A staggering 60.1% of municipalities have indicated that they do not plan to implement local currencies at all, while only 15.8% have introduced them. About 5.1% are preparing for implementation, and 19.0% are still in the discussion phase—indicating a potential for approximately 40% of local governments to be hopeful about future advancements.

However, the main challenges identified in both the implementation and operation phases of these local currencies include attracting and maintaining users (72.7%), managing operational costs (69.7%), and expanding the network of participating merchants (60.6%). Top barriers also include the initial investment required (42.4%) and lack of operational know-how (38.0%).

Digitalization of Premium Vouchers

When it comes to premium vouchers, the report highlights that 56.3% are still operating on paper-only systems. In contrast, 20.9% are implementing digital forms, while 11.4% are considering the transition, and only 3.2% have a digital version planned. This reflects that around 35% of municipalities are open to digitalization, yet the main hurdle is encouraging residents to utilize digital formats and addressing the digital divide (63.2%).

The obstacles cited for digitalization efforts primarily focus on motivating residents to engage with digital platforms (56.7%), providing digital support for merchants (44.2%), and securing budget allocations (42.5%).

Cashless Payment Promotion

The survey revealed that only 22.8% of municipalities are actively supporting local businesses in adopting cashless payment systems. When questioned about participation in promotional meetings regarding cashless systems, nearly half (49.3%) expressed an interest to participate, indicating significant local demand for guidance and assistance in transitioning to digital payment methods.

BPO Usage in Local Programs

Currently, around 24.1% of municipalities are utilizing Business Process Outsourcing (BPO) in their local currency and premium voucher operations. Unsurprisingly, 65.2% do not plan to employ BPO services. Most of the BPO activities reported involve issuing and printing (67.3%), distributing and selling (63.6%), and processing redemptions (63.6%).

Comprehensive Analysis

While there is growing recognition of the need for digitalization in the realms of local currency and premium vouchers, significant hurdles remain. Initial investment costs and ongoing operational expenses, alongside a lack of human resources and know-how, underline the complexity of the situation. Moreover, addressing the digital divide, particularly among seniors, remains paramount. The report suggests the following pathways forward:

1. Incremental Digitalization: A phased approach to digital adoption could incorporate periods of dual operation between paper and digital systems.
2. Support Systems for Seniors: Tailoring support structures to assist the elderly in navigating digital tools is essential.
3. Empower Local Businesses: Strengthening aiding frameworks for local businesses to transition to digital platforms is crucial for smoother integration into the cashless economy.
4. Sustainable Operation Models: Developing cost-effective and sustainable operational models that take into account measurable benefits would ensure longevity.
5. Sharing Success Stories: Multiple municipalities are keen to engage in forums and workshops, showcasing the importance of sharing successful case studies and innovative solutions to common challenges.

Given the keen interest noted in participation for informational sessions, there exists a palpable demand for shared insights into implementation practices and problem-solving strategies. The collaborative sharing of this information can serve as a robust support mechanism for municipalities as they navigate the complexities of digital transformation.

For those interested in obtaining the full version of the "Local Currency and Premium Voucher Actual Survey Report," please reach out via the provided contact details.

For inquiries related to this press release, please contact:

• - Address: General Incorporated Association for Local Government DX Promotion, Regional Currency and Cashless Division
• - Phone: 03-6683-0106
• - Email: [email protected]

Visit our contact page for further details.