Web3 tech company SOWAKA PTE. LTD. (Singapore) announced on the 4th a digital asset payment solution "Avacus Pay" that supports the yen-denominated Japanese yen stablecoin "JPYC." By eliminating the need for dedicated terminals and cash register modifications, and setting the payment processing fee to zero, this service provides a more cost-competitive digital payment method for Japan's retail and service industries compared to traditional cashless payment options, thereby promoting the full-scale adoption of Web3 in the domestic market.
JPYC opens a new axis for domestic digital payments
The background of this movement lies in the clarification of regulations surrounding domestic stablecoins. In Japan, the Payment Services Act was revised in March 2025, establishing a legal definition for stablecoins. Based on this, JPYC Corporation completed registration as a fund transfer service provider for the issuance of yen-denominated stablecoins in August of the same year, and began issuance on October 27. JPYC is issued and redeemed at a 1-to-1 ratio with the Japanese yen and is positioned as a legally backed electronic payment method.
'Avacus Pay,' provided by SOWAKA PTE. LTD., has been developed as infrastructure that allows businesses to receive JPYC without cumbersome procedures, in response to the improvement of the legal environment. The biggest feature is that it minimizes the complexity unique to blockchain technology. With the company's uniquely developed 'gasless system,' users can complete payments using only their JPYC balance without being aware of the gas fees (network fees) required for transactions involving cryptocurrencies or stablecoins. This achieves usability similar to traditional QR code payments and provides an environment where even Web3 beginners can use it without stress.
Zero fees change the revenue structure of retail and service industries
The impact of 'Avacus Pay' on the retail and service industries is expected to be significant. Traditional credit card payments and major QR code payments have imposed transaction fees of around 2.5% to 3.25% on businesses, but this service has set the transaction fee permanently to zero. This means that for a store with a monthly sales of about 10 million yen, it corresponds to a cost reduction effect of about 3 million yen annually. Since it directly relates to improving the revenue structure, it is seen as particularly attractive to industries with thin profit margins.
Additionally, by utilizing Web3 technology, it also contributes to the simplification of accounting operations. Basic processing can be completed with just the record of JPYC received, avoiding complex cryptocurrency accounting processes. Furthermore, it offers a feature that automatically grants store-specific points to customers' digital wallets. Since the expiration date and usage range of points can be flexibly designed, it functions as a strategic promotional tool that directly enhances customer loyalty and encourages repeat purchases.
SOWAKA PTE. LTD. plans to begin pilot implementations in some stores in the first quarter of 2026, aiming for expansion to 100 stores in the second quarter of the same year. The KPI for the first year sets a target of 1,000 store implementations and a monthly circulation amount of 150 million yen, which is expected to serve as a touchstone for the widespread adoption of digital asset payments in Japan.