The rebate system linked to cashless payments, which the government introduced in October last year in line with the consumption tax rate hike, will end Tuesday.
About 1.15 million small and midsize retailers, or nearly 60% nationwide, participated in the system.
By mid-April, approximately 4 billion cashless transactions were made for a total of about 8.5 trillion yen. Rebates to customers totaled 353 billion yen.
Under the system, consumers who pay by credit card or electronic money receive a rebate of up to 5%, with the government bearing the cost.
The number of participating stores more than doubled from the initial estimate as the spread of infections with the novel coronavirus raised interest in noncash settlements. The increase in online shopping due to people staying home was also a favorable factor.
However, achieving the government's target of cashless payments accounting for 40% of all transactions by 2025 remains difficult. In 2019, cashless payments accounted for just 26.8% of private consumption, up only 2.7 percentage points from the previous year.
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