TOKYO –
A bank card cost processor with liabilities of about 125.9 billion yen has turn out to be Japan’s largest chapter to date in 2026, disrupting card funds at eating places and retailers throughout the nation and forcing many companies to simply accept money solely.
Signs warning prospects that bank cards couldn’t be used had been already showing at retailers in a Tokyo purchasing district on July 8. Many had been handwritten and posted close to entrances, with notices equivalent to “credit cards unavailable” and “cash payments only.”
People on the road expressed concern. “It makes me panic. I basically use credit cards,” one individual mentioned. Another mentioned, “I’m a credit card person, so this won’t work for me. It’s a problem.”
Zentoshi, which had contracts with eating places and different companies nationwide to deal with bank card cost processing, was discovered to have obtained a court docket resolution to start chapter proceedings.
The impression unfold rapidly throughout eating places nationwide. On the evening of July 7, at artistic izakaya Balmichi in Tokyo’s Shibuya district, a male buyer was seen fastidiously counting money on the register. He mentioned it had been some time since he final paid in money. “It’s probably been about a month. It feels rare. It’s like, ‘It’s been a while,’” he mentioned.
At Balmichi, which had a contract with Zentoshi, bank card terminals put in on the register started displaying an error message from July 6. The restaurant has since been restricted to money funds.
One buyer mentioned, “I didn’t bring cash today, so I’m in trouble. My friend is going to withdraw money now. It’s a huge inconvenience.”
The sudden disruption has left not solely prospects but in addition restaurant house owners confused.
“Credit cards suddenly stopped working from July 6,” mentioned Shingo Kimura, proprietor of Balmichi. “Recently, many customers pay by credit card, so it’s about 80% cards and 20% cash.”
Zentoshi had earned payment income by advancing gross sales proceeds to retailers when prospects paid by bank card, permitting shops to obtain cash sooner than they usually would from card corporations.
With Zentoshi’s chapter, nevertheless, eating places could have problem recovering gross sales proceeds that haven’t but been deposited.
“The next closing date is July 15, and the money is supposed to come in on July 20,” Kimura mentioned. “In terms of the amount, it’s probably close to seven figures.” Asked whether or not that meant slightly below 1 million yen, he mentioned, “Yes, that’s about right.”
As of 2018, Zentoshi had about 200,000 member shops. Some restaurant operators say a number of million yen stays unpaid throughout seven shops of their group.
“It covers five days, from July 1 to July 5,” mentioned Noboru Yamazaki, enterprise division supervisor at Bar Company. “I think it really amounts to several million yen. I’ve been in the restaurant business for a long time, but this is the first time something like this has happened, and I’m extremely shocked.”
As cashless funds turn out to be extra widespread, individuals on the road had been requested how a lot money that they had of their wallets. Many mentioned they had been carrying only some thousand yen. “Four thousand yen. If I go out to eat, I just use a credit card,” one individual mentioned. Others mentioned, “I have 9,000 yen,” “I had 5,000 yen today, which is a lot for me,” and “I carry cash, but I mostly pay by card.”
The query now could be why Zentoshi collapsed with liabilities of about 125.9 billion yen, making it the biggest chapter in Japan to date in 2026, regardless of the rising use of cashless funds.
Food journalist Rikiya Yamaji pointed to an unlawful contract difficulty involving Zentoshi in 2024. “That caused the company itself to lose credibility,” he mentioned.
Two years in the past, former staff of Zentoshi had been arrested in reference to allegations that they illegally put in cost terminals at eating places that had been uncovered over so-called rip-off practices. The firm’s money circulate reportedly worsened afterward on account of issues over its credibility.
“Zentoshi’s collapse has sent a major shock through the industry,” Yamaji mentioned. “Restaurants operate on thin margins and high volume, so I think this is a matter of survival.”
Source: FNN