PayPay Securities Corporation (Head office: Chiyoda-ku; Tokyo; President & Representative Director: Kenji Bansho; hereinafter “PayPay Securities”), known for its mission to “Make asset management more accessible,” and PayPay Corporation (Head office: Minato-ku, Tokyo; President & Representative Director, CEO, Corporate Officer: Ichiro Nakayama; hereinafter “PayPay”) are pleased to announce that the mini app*1 “PayPay Asset Management*2,” which allows users to buy and sell securities from within the cashless payment service “PayPay,” has been launched. This is the first service in Japan that allows trading of securities on a cashless payment service*3.
The PayPay app has already been offering “Earn Points,” a mini app which allows a simulated investment experience by using PayPay Points*4. The number of users has been steadily expanding, surpassing 6 million in April 2022, one year and 11 months after the service was launched. The new service is designed to make it easy for both “Earn Points” users and first-time investors to get started with asset management.
*1. 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.
*2. The mini app will be available starting today. Please update the PayPay app to the latest version to use it.
*3. Research by PayPay Securities, regarding major cashless payment service providers in Japan (as of July 29, 2022)
*4. “Earn Points” has been provided by PPSC Investment Service Corporation (a wholly owned subsidiary of PayPay Securities) from July 2022.
■Features of “PayPay Asset Management”
■About the six courses available for trading
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Standard Course: SPDR S&P 500 ETF
The Fund invests in a diversified portfolio of 500 major companies in the U.S. Users can diversify risk across multiple stocks.
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Technology Course: Invesco QQQ
The NASDAQ Stock Market is a well-known market for startup companies. The fund is invested in a diversified portfolio of 100 companies.
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Challenge Course: DIREXION S&P 500 3X
The daily price movement of the Standard Course is amplified by a factor of about three. The risks and rewards are three times that of the Standard Course.
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Gold Course: SPDR Gold Shares
It is linked to the international price of gold. Gold is called a safe haven because, unlike stocks, it is a physical asset that will never fail.
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Flat-keep Course: iShares USA Short Treasury Bond
This incorporates highly stable corporate bonds, including those in the banking industry. It is highly reliable, liquid, and actively traded.
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ESG Course: iShares MSCI USA ESG Select
The fund is invested in multiple stocks of companies that excel from an environmental, social, and governance (ESG) perspective.
■ “PayPay Asset Management” for managing assets on the PayPay app
“PayPay Asset Management” is a service that allows users to open a securities account* and buy and sell securities with their PayPay Balance (PayPay Money).
The minimum purchase amount for a transaction is 100 yen, and transactions can be made in increments of 1 yen. After selling securities, the amount will be immediately topped up to the user’s PayPay Balance (PayPay Money), which can be used for purchases. However, if the amount exceeds the maximum top-up amount to “PayPay” or if it will make the balance of PayPay Money exceed 1 million yen, it cannot be topped up. For more details on the PayPay Money limit, please click here.
If a user already has an account with PayPay Securities, they can immediately start investing without any application procedures by logging in through “PayPay Asset Management.” When using “PayPay Asset Management,” users must agree to provide PayPay Securities with the information registered in “PayPay,” their identity information, payment method, payout method, and other information.
* When opening a securities account, users will be required to go through both identity verification (eKYC) procedures in PayPay and “PayPay Asset Management.” For more details on the identity verification procedures in “PayPay,” please click here.
■Providing services closer to everyday life by integrating with PayPay
The PayPay app already offers “Earn Points,” a mini app which allows a simulated investment experience by using PayPay Points*, in order to make asset management more accessible and have as many users acclimatize to making investments. To further develop the service into something that is even more convenient and accessible in everyday life, the business was rebranded to “PayPay Securities” as of February 2021 to incorporate the PayPay brand. In May 2022, purchases using PayPay Balance (PayPay Money) became possible through “Oitamama Purchase”, which allows users to trade stocks and mutual funds within the PayPay Securities app without going through remittance procedures.
* “Earn Points” has been provided by PPSC Investment Service Corporation (a wholly owned subsidiary of PayPay Securities) from July 2022.
It is after this that the company has launched “PayPay Asset Management.” PayPay Securities will continue to strengthen and accelerate its integration with PayPay and offer a new type of financial service that has never been seen before, building assets with “PayPay” and paying with “PayPay.”
■ Risks and transaction fees
Securities transactions may result in loss of principal due to fluctuations in stock prices, fluctuations in foreign exchange rates, deterioration in the credit conditions of the issuer, or changes in the political, economic, or social environment of the country from where the securities are issued. Please make sure to read the “Risks and Fees etc”. section of “Pre-Contract Document” and fully understand the content thereof before trading at your own discretion and responsibility.
■Role of PayPay Corporation in this service (based on the Financial Instruments and Exchange Act concerning financial instruments intermediary services)
In accordance with the Financial Instruments and Exchange Act, the following items will be clearly indicated to customers in advance.
The principal financial instruments service operator of PayPay Corporation is PayPay Securities Corporation.
PayPay Corporation has no authority to act on behalf of its principal financial instruments service operators.
PayPay Corporation will not accept money or securities from customers in connection with its financial instruments intermediary services under any circumstances whatsoever.
■ PayPay Securities Corporation
As the first smartphone securities company in Japan, PayPay Securities (previously One Tap BUY) launched its service in June 2016 with the aim to create an environment where anyone can easily make investments, so that asset management would be more approachable. Until now, it has developed services such as “Japan-US Stocks,” “Robot Accumulation Plan,” “Tenfold CFD,” “Japan Stocks CFD,” and “Anyone IPO.”
To further develop the service into something that is even more convenient and accessible in everyday life through collaboration with PayPay, the business was rebranded to “PayPay Securities” as of February 2021 to incorporate the PayPay brand.
In addition, the company began offering investment trust funds for the first time in September 2021, with “One Global Balance” and “Global ESG High Quality Growth Equity Fund (no currency hedging)” available to users. PayPay Securities will continue to offer unprecedented financial services that are simpler than the rest and easiest to use, in order to help customers become familiar with stock investments and asset building.
■ About PPSC Investment Service Corporation
“Earn Points,” with which users can simulate an investment experience using PayPay Points has been provided by PPSC Investment Service Corporation (a wholly owned subsidiary of PayPay Securities) from July 2022. “Earn Points” is a service which does not require any procedures such as opening an account and allows anyone to immediately experience simulated investments via the PayPay app. It has been utilized by many customers, exceeding 6 million users in March 2022.
■ PayPay Securities official URL
“PayPay Securities Japan U.S. Stocks” app: http://bit.ly/3sjrtPL
Official website: https://www.paypay-sec.co.jp/
Social media accounts:
＜Twitter＞ https://twitter.com/paypay_sec
＜Facebook＞ https://www.facebook.com/paypaysec/
＜note＞ https://note.com/paypay_sec_edit
■ 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 situations, 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 service provider 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, 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.
