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| Online report |
| Jul. 15, 2004 |
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| IC technology is widely deployed in Japan in the form of smart cards.
More popular in Europe and Asia than in North America, smart cards look
like a credit card, but contain a semiconductor with either a microprocessor
chip or a memory chip. Because the processing unit and memory are in the
same integrated circuit (IC), both types of smart cards (IC microprocessor
cards and IC memory cards) offer high security plus the convenience of
portability. With more memory than the magnetic-stripe cards currently
popular in the US, IC card use is expected to grow. Besides cards, Japanese consumers can now get cell phones that have IC semiconductors embedded in them. This will be a hot new area for IC technology. IPSe Marketing, Inc., a Tokyo-based e-business research and consulting firm, hosted a Web survey on the two major IC applications in the Japanese market today: smart cards and IC-embedded cell phones. Almost 4,000 Internet users sent in responses over the 10-day survey period in June 2004 (details are provided in the Survey Outline section). We surveyed recognition rates, ownership, and use of IC smart cards and cell phones, and probed consumer perceptions by asking respondents whether they would like to use these devices in the future. |
| Overview |
| More than 80% of respondents have heard of IC cards, and 35.5% of respondents
already have one or more. The latter group includes the 34.6% who have
an IC embedded VISA card, which the issuing company mailed to all qualified
current users. But the figure also reflects active purchases: 34.8% have
bought a Suica card, a "touch and go" train fare card whose
capabilities now include commuting tickets and electronic money. Consumers are eager to add smart card capabilities to their mobile phones. The newest IC application is the IC-embedded mobile, the first being NTT DoCoMo's iMode FeliCa. Although it was launched after this survey was conducted, approximately 70% of respondents had heard of it, and over half find the concept attractive. Suica cards and mobile phones have one important thing in common: their owners tend to have these items on their person whenever they go out. The convenience of multiple applications in one card has boosted the popularity of the Suica, so it is easy to imagine the merits of adding IC capabilities to mobiles. The impact of the latter could be greater since Japan has a generation of consumers who are already inseparable from their mobile phones. |
| Key Findings |
| <<IC cards enjoy high recognition, high popularity>> |
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| - | Of the Internet users who responded to our survey, 83.1% have heard
of IC cards; 50% responded that they know how such cards function or what
they can be used for. The latter group comprised about twice as many men
as women. |
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| - | 35.5% of respondents have some kind of IC smart card; these
respondents have an average of 3.2 cards each. Although more men (41.4%)
than women (29.9%) own IC cards, women have a slightly high number of
cards (3.3 each) than men (3.1 cards each). Women tend to have many more
loyalty cards (smart cards issued by retailers that store customer information
and purchase points that can be redeemed for services or discounts on
future purchases.) |
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| - | The most widely-owned type of IC card is the IC-embedded credit card.
(64% of respondents who have IC cards have one.) The next most popular
is the transportation fare card (owned by 44.9% of IC card owners), cobranded
credit cards/merchant loyalty cards (23.9%), automotive (mainly gas station)
loyalty cards (17.6%), then electronic money/stored value cards (16.9%). |
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| - | Of individual card entities, the Suica is the most widely owned. (34.8%
of all IC card owners have one.) By age group, the younger the respondent,
the higher ownership tends to be. The IC VISA card came in a close second.
(34.6%) |
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| - | Asked whether they will use IC cards in the future, over 40% of respondents
say yes. Among those who already own IC cards, close to 80% say that they
will. |
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| <<Japanese consumers poised to embrace IC cell phones>> |
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| - | Japan's first IC-embedded mobile phone, NTT's iMode FeliCa, was mass-marketed
in July, just after this survey was conducted. Yet, approximately 70%
of respondents had already heard of it; 31.7% know what these cell phones
will be able to do or what kinds of services will be offered. Asked whether
they would like to use such features or services, 54.7% say yes. |
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| - | A breakdown indicates that interest is particularly high among users
with detailed knowledge of IC cards, and among users who report high use
of their mobile phones. Respondents are particularly keen to use their
cell phones as electronic wallets (46.8% of respondents who would like
an IC cell phone), and to use the contactless interface on their cell
phones for touch and go payment of transportation fares (35.2% of prospective
users). |
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| Further details are available here in Japanese | ||
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| Survey Outline |
| (1) Title Survey on consumer use and acceptance of IC cards |
| (2) Methodology Web survey on the IPSe Marketing, Inc. web site |
| (3) Subjects Japanese Internet users |
| (4) Survey period June 17-27, 2004 |
| (5) Number of Valid Responses 3,958 (49.1% male, 50.2% female; average age: 35.3) |
| Company Profile |
| IPSe Marketing, Inc. |
| IPSe marketing provides market research and consultancy services, sharing
our expertise and experience in advanced Internet businesses. Recently
we have focused on emerging markets such as mobile commerce and electronic
or IC-card based authentication/payment platforms, in which Japanese companies
command a lead worldwide. We regularly conduct open web surveys to gather information for industry clients. Our demonstrated capabilities in research and analysis offer the groundwork for effective strategies and implementation and help companies succeed in the Japanese market. |
| IPSe Marketing can provide |
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