（Original Video in Japanese was published on the FINOLAB CHANNEL on Mar. 31, 2026 by Makoto Shibata）

The study group report on the Future of Payment Systems in Japan was published on Mar. 19, 2026, focusing on the Zengin System, Japan’s core interbank settlement infrastructure. While the Zengin System has long supported reliable bank transfers, it now faces growing pressure to evolve due to rapid changes in the financial landscape.

1. Limitations of the Current System

• The Zengin System is highly stable but not designed for real-time, 24/7 digital demands.
• It reflects a legacy structure optimized for traditional banking rather than modern, data-driven finance.

2. Rise of New Payment Needs

• Increasing demand for instant payments, always-on availability, and seamless user experience.
• Growth of cashless payments, fintech services, and platform-based economies is reshaping expectations.

3. Competition and External Pressure

• Non-bank players and fintech companies are introducing more flexible and user-centric payment solutions.
• Global trends (e.g., real-time payment systems in other countries) highlight the need for Japan to modernize.

4. Direction of Reform

• The report suggests upgrading infrastructure toward:
  • 24/7 real-time processing
  • Open and interoperable systems
  • Enhanced data utilization (beyond simple fund transfers)
• Emphasis on collaboration between banks, FinTech companies, and other industries.

5. Strategic Implications

• Payment systems are no longer just “infrastructure” but a core competitive domain.
• Future financial services will be built around embedded finance, APIs, and ecosystem integration.

Conclusion

The video concludes that Japan’s payment system must transition from a bank-centered, batch-processing model to a real-time, ecosystem-driven platform.
This transformation is essential not only for maintaining competitiveness but also for enabling innovation in the broader digital economy.