Japanese card network JCB, banking group Resona Holdings, and technology provider ODAWARA have signed a memorandum of understanding to jointly develop and deploy ultra-wideband (UWB) payments for public buses in Japan. However, the initiative raises questions about adoption and execution, and whether it will meaningfully reduce friction or simply introduce unnecessary complexity.
Hands-free fare paying experience
Most innovation in the payments industry focuses on reducing friction—making transactions faster and more efficient while maintaining strong security. Japan’s UWB concept aims to offer a hands-free fare experience: passengers could board and alight without tapping a card, scanning a QR code, or even taking out a phone or wallet. Instead, an enrolled payment app would use UWB’s precise proximity detection to confirm when a passenger enters and exits the bus, automatically calculating and charging the correct fare.
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The system is intended to streamline fare payments for passengers and reduce drivers’ workload by simplifying the management of multiple payment methods and limiting the need to handle fare-related questions. It could also reduce peak-hour delays by accelerating boarding and improving overall route throughput. In addition, it could generate valuable passenger flow data for operators and public authorities, enabling better service planning and route optimisation based on travel demand throughout the day.
Beyond fare collection, the system could create incremental revenue opportunities through personalised loyalty rewards, targeted offers, and location-based advertising (with consumer consent). For example, passengers who frequently exit near a shopping district could receive discounts from nearby retailers, with those businesses paying the transport operator to reach highly relevant customers.
GlobalData In-Store Consumer Payments Analytics 2025
However, around 30% of Japan’s population are aged 65 and above as per 2025 World Bank data, and many elderly passengers may be less comfortable using app-based payment tools. GlobalData’s In-Store Consumer Payments Analytics 2025 found that when paying for travel, 61% and 20% of Japanese consumers prefer credit cards and cash, respectively. This shows that mobile payments remain a secondary payment method. This data raises questions about how quickly (and how broadly) passengers would adopt a mobile-first UWB solution.
Cost and deployment complexity are additional considerations. UWB implementations typically require higher investment than alternatives such as Bluetooth Low Energy. Upfront costs can be significant, with hardware, infrastructure, and end-user devices contributing materially to total deployment costs. Installation and cabling can account for 80–90% of a traditional deployment according to hardware and software provider WiTTRA, reinforcing the question of whether this innovation addresses a sufficiently significant problem to justify the investment.
It also prompts a broader question about the level of automation required. Existing options—contactless cards, mobile wallets, and transit apps—already enable fast and efficient fare collection. The incremental benefit of eliminating a simple tap may therefore be modest. In that context, the technology could be viewed as solving a relatively minor inconvenience, rather than addressing structural challenges such as driver shortages, declining ridership, and pressure on operator profitability.
Benefits versus costs challenge
Ultimately, success will depend on the partners’ ability to drive behavioural change, ensure reliable performance during peak travel periods, and demonstrate that the benefits outweigh the costs. If adoption remains low, due to limited awareness, weak incentives, or persistent friction at the gates, the initiative risks becoming an underused niche feature that fails to justify ongoing investment. However, if executed well, the initiative could represent an early step toward more seamless, next-generation payment experiences in public transport.
Bhavya Patel is an Associate Analyst, Banking & Payments, GlobalData
