Press Release

PayPay Corporation is pleased to announce the results of the key performance indicators of cashless payment service “PayPay,” including the number of users, and the main initiatives it carried out in the second half of FY 2021.

The number of registered users, merchants, and payments of “PayPay” grew steadily despite the effects of Covid-19. The number of users exceeded 47 million in April 2022 and the number of payments exceeded 1.9 billion during the six-month period from October 2021 to March 2022, approximately 1.8 times the number of payments year-on-year.

【Number of Users, Merchants, and Payments】

1. 

   【Growth Chart of Number of users】

2. 

   【Number of merchants】

3. 

   【Number of payments】

*1. Total number of users who have registered for an account as of April 2022.

*2. Total number of locations registered with “PayPay,” including stores and taxis, as of March 2022.

*3. This does not include the number of times users used the “Send/Receive” PayPay Balance feature between users or the number of times users made payments using the Alipay app.

As Covid continues to have a major impact across the country, PayPay has boosted the number of merchants and users by playing the role of a platform that promotes digital payments recommended for the new normal. In the second half of FY 2021, PayPay launched PayPay Atobarai (Pay Later), which allows users to make a lump-sum payment of the amount spent in a given month the following month. In addition, a feature which enables merchants to easily issue their unique PayPay Stamp Cards was also rolled out, further supporting the DX*4 of merchants. The company is also working to further improve operations and increase the efficiency of sales activities of merchants. From October 2021, PayPay started charging a payment system fee to merchants with annual sales below one billion yen*5. The fee rate begins at 1.60% (excluding tax), so that merchants can use “PayPay” at a low cost.
PayPay will strive toward improving user convenience, social productivity, and sustainable business management by continuing to promote cashless payments, as well as add and expand services.

*4. Digital Transformation. It refers to the transformation of products, services, and business models based on the needs of customers and society, using data and digital technology to respond to the rapid changes in the business environment. It also includes the transformation of business operations, organizations, processes, and both corporate culture and climate to establish a competitive edge. (Ministry of Economy, Trade and Industry, “DX Promotion Guidelines”)

*5. Corporations with annual sales of one billion yen or more that became “PayPay” merchants before April 1, 2020, and had no payment system usage fee charged until the end of September 2021, were required to pay the payment system fee from October 2021. The payment system fee was already collected from corporations with annual sales of one billion yen or more that became “PayPay” merchants on or after April 1, 2020.

【PayPay’s Initiatives in the Second Half of FY 2021】

＜Addition of new services and broadening of existing services＞

＜Initiatives utilizing PayPay’s payment platform＞

＜Campaigns with special & attractive offers＞

＜Efforts in pursuit of safety and security＞

Launch of PayPay Atobarai (Pay Later), a convenient payment method that can be completed within the PayPay app

On February 1, 2022, PayPay started offering PayPay Atobarai (Pay Later), a new payment method on “PayPay” that allows users to pay the amount spent in the current month in a lump sum the following month. Users do not need to top up their PayPay Balance in advance, and can complete payments with the PayPay app even if they have no PayPay Balance. There is no annual fee, and there is also no fee if the payments are settled as a lump-sum payment in the following month. Payments made with PayPay Atobarai (Pay Later) will be counted toward PayPay STEP, a program that grants up to 1.5% worth of PayPay Points depending on the usage of PayPay in the previous month, and will also be eligible for other rewards. Also, the “Pay with Pay Later or with a PayPay Card to Get Back Up to 1% Campaign” is being conducted in addition to PayPay STEP. For more information about the campaign, please visit here.

Rollout of PayPay Stamp Card, allowing small and medium-sized stores in town to easily issue stamp cards

The PayPay Stamp Card feature was launched in December 2021. This feature is one that can be used by merchants who subscribe to the PayPay My Store Lite Plan, and merchants can issue their own PayPay Stamp Card. If users pay with “PayPay*6” at stamp card issuing merchants, they will automatically obtain the merchant’s stamp card and stamps*7. Depending on the number of accumulated stamps, users can receive a reward from the merchant.
The Stamp Card feature was first available for major chain stores, but from March 1, it was extended to small and medium-sized local stores that subscribe to the PayPay My Store Lite Plan, allowing them to easily issue stamp cards*8.
For users, shopping will be more convenient and enjoyable, as they no longer have to worry about forgetting to take physical stamp cards out of their wallets, since stores will issue PayPay Stamp Cards instead.
In addition, by issuing PayPay Stamp Cards, merchants can conduct sales promotion activities targeting the more than 47 million PayPay users and expect customers to return to their stores. Furthermore, merchants can reduce operational costs at the time of checkout, leading to a more efficient shopping experience for both employees and customers. Merchants can configure their own stamp conditions and rewards*9, and conduct a detailed analysis after the stamp cards are issued, leading to the implementation of further efficient and effective measures.

*6. Payment methods include PayPay Balance, credit card payments including Yahoo! JAPAN Card and PayPay Card, PayPay Atobarai (Pay Later), and PayPay Atobarai (lump-sum payments only).

*7. Regarding the rollout of PayPay Stamp Cards, PayPay has developed and patented a system to automatically add a stamp to the stamp card associated with the merchant, at the time of payment.
Patent number: 6978576
Name of invention: Providing device, providing method, and providing program
Date of patent registration: October 12, 2021

*8. In order to use the PayPay Stamp Card feature, merchants must subscribe to PayPay My Store Lite Plan. A PayPay Stamp Card usage fee, equivalent to the cost of the rewards, will be charged when providing reward tickets to users who have accumulated a certain number of stamps. Use of the PayPay Stamp Card will be free of charge until the end of June 2022 (tentative).

*9. There are certain conditions for creating a stamp card, including the reward settings.

* “PayPay Stamp Card” can also be obtained in advance from the list of features in “PayPay.”

Steady increase in the number of users using PayPay Coupons

The number of people using PayPay Coupons, with which merchants have the option of granting PayPay Points, has exceeded 10 million as of March 2022, since its launch in November 2020. Users can automatically receive PayPay Points benefits when paying with “PayPay” at applicable stores by claiming a coupon on the PayPay app beforehand.
For merchants, the use of PayPay Coupons will also lead to efficient and effective implementation of measures targeting the more than 47 million PayPay users nationwide, eliminating the need for conventional operations, such as distributing coupons and discount vouchers, confirmation by store staff at the cash register, and the physical act of collecting coupons. Thanks to these conveniences, the number of merchants issuing PayPay Coupons is expanding.
PayPay will continue to improve the functionality of the system to make it even easier for merchants to issue coupons and for users to search and use them.

【Growth of PayPay Coupon users】

Added “PayPay Insurance (1-day insurance)” and other products, to the lineup of mini apps. The number of people using Earn Points exceeds six million

PayPay Insurance Services Corporation offers PayPay Insurance (1-day Insurance) which are available as mini apps*10 within the PayPay app. In addition, Earn Points, provided by PayPay Securities Corporation, surpassed six million users in one year and 11 months after the service was launched in April 2020. PayPay will continue to augment its mini apps to further the transformation of “PayPay” into a super app.

*10. A feature that allows users to smoothly make reservations, order products, and purchase services provided by PayPay Corporation’s partner companies from the PayPay app.

The number of users using the Send/Receive feature remains high

The use of the Send/Receive feature for PayPay Balance on the PayPay app is increasing. According to the “Survey on Code Payment Trends” released on April 18, 2022 by PAYMENTS JAPAN, the number of remittances via mobile payment apps from January to December 2021 was about 97 million. Moreover, the number of times balances were sent using “PayPay” was approximately 84 million*11, which means that over 90% of the transfers were through “PayPay.” The surge in usage of the Send/Receive feature is primarily due to the growth in the number of merchants and PayPay registrants, which in turn contributed to the expansion of PayPay as a payment platform. Therefore, the use of this function is expected to continue increasing in the future.
To improve the convenience of Send/Receive, a new feature has been added that allows the receiver to automatically receive a PayPay Balance if they have added the sender to their contacts.

*11. Number of times PayPay Balance was sent using the Send/Receive feature between January 1, 2021 and December 31, 2021. Researched by PayPay.

PayPay’s Bill Payment adopted by approximately two-thirds of local governments in Japan and increased in number of times it was used

PayPay’s Bill Payment, a service that allows users to pay utility bills and for deliveries by scanning the barcode on the bill (payment slip) with the PayPay app, is growing in its number of clients and payment frequency. As of March 2022, Bill Payment can be used for the bills of 1,889 local governments and businesses (1,129 municipalities and 760 waterworks bureaus), 272 electricity and gas companies, and 1,384 private companies, including sales of goods and services, e-commerce, and broadcasting subscription fees. In particular, approximately two-thirds of all municipalities in Japan have adopted Bill Payment.
Moreover, the number of payments made using Bill Payment in the second half of FY 2021 (October 2021 to March 2022) was more than 2.5 times higher year-on-year. Users can pay their taxes and utility bills 24/7 wherever they please, reducing the time and effort required to go out and withdraw cash, as well as saving on withdrawal fees. Plus, by introducing Bill Payment, local governments and businesses can make life more convenient for citizens and users of their services, reduce delayed payments, and prevent users from forgetting to pay.

【Increase in the number of payments with Bill Payment】

More than 7.5 million users linked the Seven-Eleven App with “PayPay”

The number of users who linked the Seven-Eleven App with “PayPay” has surpassed 7.5 million*12. When users link the Seven-Eleven App with “PayPay,” they can make payments and earn rewards at the same time by simply presenting the “PayPay” payment barcode displayed on the screen.
By introducing “PayPay” to their apps, partner companies can improve user convenience by incorporating the payment function into their apps without having to develop it from scratch. “PayPay” users can link their apps with only a simple initial setup, which could lead to a large number of users to link apps. PayPay will continue to strive to have as many partner companies as possible adopt the “PayPay” payment platform. Furthermore, a joint campaign with the Seven-Eleven App, “Win on the Seven-Eleven App! PayPay Jumbo” will be held until April 30, 2022. For more information about the campaign, please visit here.

*12. As of March 2022.

Expansion of the Support Your Town Project, which implemented over 490 campaigns to date through collaborations with local governments

In response to the significant impact of Covid-19 on the local economy, the Support Your Town Project, which is being implemented jointly with local governments using the “PayPay” payment platform, has been further expanded. As of March 2022, a total of 491 campaigns have been held in 310 municipalities spanning 45 prefectures across Japan. By utilizing “PayPay” to revitalize the local economy, municipalities can eliminate the need to print, issue, deliver, and redeem promotional coupons and gift certificates, while also doing away with users having to go to specific locations to purchase such vouchers. Given that the local governments, residents, and users benefit from these campaigns, they will continue to be held in various locations.

【Support Your Town Project (cumulative total, including scheduled campaigns)】

Launch of the large-scale campaign, Cho PayPay Matsuri (Super PayPay Festival)

Cho PayPay Matsuri, the large-scale campaign that allows savings on purchases at PayPay merchants nationwide and online stores, was held in October and November 2021, and February and March 2022. Particularly in February and March 2022, various campaigns, such as “Chance to Win All Over Japan! Super PayPay Jumbo“, were held as part of the Cho PayPay Matsuri. PayPay will continue to implement measures that enable users and merchants to experience the convenience and savings that come with the use of cashless payments, and to encourage even more people to use its services.

Launch of the Billion Yen New Year’s Lottery, in which the number of lottery drawings increased according to the number of missions accomplished (such as identity verification)

This campaign was aimed at users who verified their identity using the My Number Card and registered their email address between December 2021 to January 2022. Various missions were made available during the mission period, such as acquiring PayPay Coupons or visiting the campaign page, by which the number of lottery draws offered to the user for the Billion Yen New Year’s Lottery would increase. PayPay will continue strengthening its efforts to encourage users to verify their identity in order to provide a safer and more secure payment platform for both users and merchants.

The number of PayPay registrants in the Myna Points Project exceeds six million

In February 2022, the number of registered “PayPay” users exceeded 6 million in the Myna Points Project implemented by the Ministry of Internal Affairs and Communications from September 1, 2020. PayPay has participated in the first installment of the project, which ran from September 1, 2020 to December 31, 2021, and has been participating again in the second edition as a cashless payment service provider, which began on January 1, 2022. If a user who has newly acquired a My Number Card applies for Myna Points*13, selecting “PayPay” as the cashless payment service to receive the points, 25% of the amount (up to 5,000 yen) they top up to their PayPay Balance or pay with “PayPay” will be granted as PayPay Points. For more details, please visit here.
In addition, PayPay Points worth 7,500 yen will be granted to users who register for the use of My Number Card as a health insurance card*14, and an additional 7,500 yen worth of points will be granted to users who register an account for receiving government funds, providing users the opportunity to earn up to a total of 20,000 yen worth of points. The granting of Myna Points for the registration of use as a health insurance card and for registering an account for government funds is scheduled to start around June 2022.

*13. This includes those who have already obtained a My Number Card and have not applied for the first round of My Number Points. Those who already have a My Number Card, applied for the first edition of the Myna Points Project, and received PayPay Points worth 5,000 yen are not eligible.

*14. Users who have already completed registration or who have applied are also included.

Measures against unauthorized use for the safe use of “PayPay”

In order to ensure the safety and security of cashless payments, PayPay collaborates with its partner financial institutions, uses fraud detection systems, and monitors accounts 24 hours a day, 365 days a year with dedicated staff. When PayPay detects unauthorized use, it will take preventative measures, such as immediately suspending the account. The fraud incidence rate for “PayPay” from April to December 2021 was as follows.

*15. PayPay’s fraud incidence rate is the percentage of the amount of payments made using “PayPay” between January 1 and December 31, 2021 that were claimed to be fraudulent.

*16. The credit card fraud incidence rate is calculated from Japan Credit Card Association’s credit related statistics, “List of Credit Card Development Survey Results (Amount of Credit Extended and Number of Contracts)” and “Status of Unauthorized Credit Card Use Damage,” both in “3. (Single Company) Statistics Based on Japan Credit Card Association’s Research” (amount of unauthorized credit card use damage divided by amount of credit extended).

From August 2019, PayPay has been offering a full compensation system in case of any damage. In addition, efforts related to identity verification to improve the safety and convenience of PayPay users began on November 10, 2021 with the introduction of the Japanese Public Key Infrastructure using My Number Cards, and from April 20, 2022, the use of driver’s license IC chips for identity verification.
Also, the use of certain financial institutions within PayPay that had been suspended since September 2020 has been gradually resumed, allowing for the registration of new bank accounts and top ups from such banks*17. There have been no incidents of unauthorized top ups from bank accounts by third parties since November 2020.
Recently, the number of phishing sites and the damage caused by them are on the increase, both in Japan and abroad. However, among other things, PayPay has set up a special page and has been cautioning users, focusing on the prevention of phishing through research of the latest fraud tactics, establishing a security system to prevent users from being harmed. PayPay will continue to improve its service environment so that all users can use the services safely and securely. For more information on PayPay’s safety initiatives, please click here.

*17. Financial institutions that have resumed activities can be seen here. Please note that identity verification (eKYC) is required to register an account at a financial institution or to resume use of the account. For details regarding the procedures of identity verification, please click here.

PayPay will continue to offer the convenience of cashless payments to users as well as all kinds of retailers and service providers, with the goal of creating a world in which a safe cashless shopping experience can be enjoyed anywhere in Japan. “PayPay” will continue on the path to evolve from a “payment app” into a “super app” that will make users’ lives richer and more convenient, fostering a culture of “Anytime, Anywhere with PayPay.”

■ About “PayPay,” the cashless payment service provided by PayPay Corporation

PayPay is a cashless payment service expanding across the country, available not only at major chain stores but also at small and medium size retailers, vending machines, taxis and even public transportation. It can also be used in a variety of other scenes, including paying for online services and utility bills. PayPay is also expanding its range of services beyond just payments, including a “send/receive” feature (remittance/transfer and receiving of money) that allows users to transfer their PayPay Balance (PayPay Money and PayPay Money Lite) between each other for free, or “point management,” a service that allows users access to a simulated investment experience involving the exchange of PayPay Points with points provided by a Type 1 Financial Instruments Business Operator that PayPay is partnered with. The company also strives to create a safe and convenient environment for users through a hotline available 24/7 and a full compensation scheme ensuring a compensation for any damages that may be suffered.

PayPay is registered as follows:
・Prepaid Payment Instruments (third party type) Issuer, Registration #: Director-General of the Kanto Finance Bureau, No. 00710 (Registration date: October 5, 2018)
・Fund Transfer Operator, Registration #: Director-General of the Kanto Finance Bureau, No. 00068 (Registration date: September 25, 2019)
・Japan Payment Service Association (https://www.s-kessai.jp/, Date of admission: September 12, 2018)
・Business Operator that Concludes Contracts on the Handling of Credit Card Numbers, etc., Registration #: Kanto (K) No. 106 (Registration date: July 1, 2019)
・Japan Consumer Credit Association (https://www.j-credit.or.jp/, Date of admission: July 1, 2019)
・Telecommunications Carrier (Filing #: A-02-17943 / Date filed: July 2, 2019)
・Notified Person Entrusted with Intermediation (Filing #: C1907980 / Date filed: December 18, 2019)
・Bank Agency Operator, License: Director-General of the Kanto Finance Bureau, No. 396 (Registration date: November 26, 2020)
・Financial instruments intermediary service registration number: Kanto Finance Bureau Director (Kinchu) No. 942 (Registration date: June 25, 2021)

* “PayPay” provides 4 types of PayPay balance: PayPay Money, PayPay Money Lite, PayPay Points and PayPay Bonus Lite. PayPay Money can be used to pay for partner services and merchants if it is within the amount deposited into the PayPay account opened after completing an identity verification process. It can also be used for sending and receiving money between PayPay users free of charge. PayPay Money can also be cashed out to a designated bank account (no withdrawal fee if using PayPay Bank). The legal nature of this is an electromagnetic record which can be used to pay for goods and other services, and can be remitted or cashed out, issued by the Company who is a Fund Transfer Operator registered under Article 37 of the Payment Services Act. Based on the provisions of Article 43 of the Payment Services Act, PayPay preserves the debt it owes to its users in full amount and more by depositing its assets. PayPay Money Lite is an electronic money issued by PayPay, which can be purchased and used to pay for services and merchants. PayPay users can transfer and receive PayPay Money Lite free of charge. The legal nature of this is a prepaid payment instrument issued by PayPay (Article 3, Paragraph 1 of the Payment Services Act). Based on the provisions of Article 14 of the Payment Services Act, PayPay preserves the relevant assets for the purpose of protecting the owners of the prepaid payment instrument by providing a security deposit for issuance to the Legal Affairs Bureau in an amount that is half or more of the unused balance of prepaid instrument methods as of March 31 and September 30. In addition, PayPay Points and PayPay Bonus Lite, which are granted through campaigns and promotions when using PayPay, can be used for partner services and merchants in addition to PayPay Money and PayPay Money Lite. However, PayPay Bonus and PayPay Bonus Lite cannot be sent or transferred between PayPay users or be cashed out. PayPay Bonus Lite has an expiration date, after which date it will no longer be valid.
PayPay also strives to create a safe and secure environment for users. If an unexpected payment is made by a third party using a PayPay account, or if a request to settle a payment suddenly arrives from PayPay to a user that does not have a PayPay account, there is a scheme that ensures compensation for the damages suffered (the difference will be provided as compensation if compensation is also provided by a third party), given that the prescribed conditions are met. Please see applying for compensation for details.

*Company names, trade names, and products/services in this press release are registered trademarks or trademarks of their respective companies.