Seven & i Holdings Co. Ltd. will terminate its hacked cashless payment service, dubbed 7pay, by September-end, the company announced Aug. 1.
The company said it has decided to discontinue the service due to the amount of time it will need to implement security measures.
Seven & i's unit Seven-Eleven Japan Co. Ltd. confirmed that about 900 customers in Japan lost a total of ¥55 million after hackers gained access to user accounts on its 7pay app, three days after it was launched in July.
The convenience store operator admitted its countermeasures against logging in from multiple devices and additional verification steps were not sufficient.
Seven & i said it has set up a team consisting of lawyers and others to investigate the cause of the problem and work out measures to prevent a recurrence.
The company, despite the termination of 7pay services on Sept. 30, said it will promote cashless payments at its outlets through various settlement services offered by other companies.
As of Aug. 1, US$1 was equal to ¥108.24.