The collapse of payment processing company Zentoshin following 20 years of suspected fraudulent activities now threatens the very survival of thousands of stunned small restaurants and bars across the country.
These shops had long trusted the Osaka-based company as a pillar of their business.
But that all ended on July 6, when Zentoshin filed for bankruptcy with liabilities of 115.164 billion yen ($711 million), the most for a bankruptcy case this year.
The collapse is being attributed to a two-decade-long accounting fraud designed to conceal a business model that had crumbled under the pressure of modern smartphone payments.
“It was like having freezing water poured in my ear while I…