Electronic money drives deflation

In Japan, electronic cash has started to take off. We can pay with our subway pass cards in vending machines, stores, etc. The issue was not that the technology is better (although it is rather more convenient than using the Swedish Cash card, may it rest in peace). It is that the vendors made it more convenient, and does not charge the users to use the card (other than a deposit).
If you charge people to use a card containing electronic cash, without providing another service (such as a credit card), then you are essentially increasing the cost of goods, since the user will have to pay more money for the same thing. In Japan, however, the reverse is happening: You get points when you use your card, and that can be up to 1 % of the amount you are buying. You can then buy other things with these points.
The real test is that you actually get these points even whey paying your taxes in the convenience store (which you do with your car tax, for instance). So you actually get a 1 % discount on your tax. The cost of your taxes have decreased in terms of the money you need to pay.
In the latter case, electronic money is driving deflation: The same goods and services can be had for less money. In the first case, it is driving inflation: You have to pay more to get the same goods and services.
But wait. Deflation is not done with Japan yet. And it is not only the fault of electronic money. This morning, there was an item in the TV news about how the taxi drivers get paid less nowadays. Why, you wonder? I think I know: You do not have to be as qualified to be a taxi driver any more.
It used to be that taxi drivers actually knew where they were going. This meant that it was rather hard to become a taxi driver, and the supply of drivers was limited. These days, all cars have a GPS device, and the driver only follows instructions. If you have a drivers license, you can be a taxi driver, and the supply of taxi drivers increases, driving down prices. Although, it should be noted, not for the taxi service, only for the taxi company towards the driver.
My bet is that Japan will see even more deflation, as the economy becomes even more efficient, and personal productivity starts to increase.