The initiative will make QR code systems compatible with each other by fiscal 2025, which begins in April of that year, allowing cashless payments in different countries without having to change money.
Japan's Ministry of Economy, Trade and Industry has already held discussions with Southeast Asian governments and central banks in countries such as Indonesia and Cambodia, according to a Japanese government official.
The Payments Japan Association, which operates the country's standardized QR code payment system called JPQR, will build a new system as early as this year, aiming to connect it to overseas service providers.
JPQR allows payments to be made through different service providers with a single JPQR-based code. Consumers can make purchases at stores by scanning the QR codes with their smartphones.
Some Southeast Asian countries also have their own standardized QR code payment systems. In Thailand, the system is overseen by the central bank and operated by a business funded by major banks. Indonesia also has a standardized system regulated by the central bank, and payment service providers are required to follow its rules.
Five ASEAN countries -- Singapore, Indonesia, Thailand, Malaysia and the Philippines -- exchanged a memorandum of understanding in 2022 aiming to unify their QR code payment systems. Joint use of QR code payment services has already begun in some countries.
Japan's move toward interoperability with other QR code payment systems aims to strengthen its ties with the region in terms of economic security and data use. It hopes to increase its economic influence in Southeast Asia, with an eye on countering China, which is seeking to expand the use of its domestic platforms for smartphone-based digital payments in Asia and Africa.