TOKYO —

Food maker Kagome Co on Wednesday became Japan’s first company to issue an electronic draft, industry sources said. Kagome issued the 50 million yen electronic draft under the electronically recorded monetary claims act put into force in December 2008, they said.
   
Electronic drafts for settlement of transactions between companies are safer and less costly than physical paper drafts, whose use has declined in Japan because of their vulnerability to loss or theft. Companies may use personal computers or fax machines to issue electronic drafts through electronic monetary claim recording institutions. A subsidiary of the Bank of Tokyo-Mitsubishi UFJ is the only such institution in Japan at present.

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4 Comments

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  PepinGalarga at 10:09 AM JST - 27th November

  what is the cost of this type of transaction versus what is currently being done? I thought this was commonplace here. There is also "furikomi" but it seems this is different from that.

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  DXXJP at 08:00 AM JST - 28th November

  Its an electronic check. They have checks in japan but only medium to large companies really use them, as you said they usually rely on furikomi or cash.

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  sf2k at 09:30 AM JST - 28th November

  Congrats Japan, you have now entered the 1980s.

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  Shadowblaster at 03:21 AM JST - 1st December

  sf2k thats pretty funny as Japan is ahead of the United States (where I am Located) by 10 years, and they are doing this? WTF !?!! This is wierd, but I am only 14 but I love electronics, I don't get this though, how stupid

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