PayPay Corporation is pleased to announce that more than 500 billion PayPay Points have been granted to users in 10 months starting from April 2022. The total grant amount for FY2022 is expected to reach 600 billion points, approximately 1.6 times more than the previous fiscal year.
PayPay’s points program, which grants PayPay Points (formerly PayPay Bonus) based on the purchase amount, has been in place from the beginning when “PayPay” was launched in October 2018. Due to the app’s ease of use and broad applications where payment is concerned, the number of registered users has grown to over 55 million*1, and the PayPay app accounts for approximately two-thirds of the total transaction volume for code payments in Japan, making it the leading*2 code payment service in the nation. With more users using “PayPay” the amount of points granted has increased, and in just four and a half years since the service was launched, the total amount of points to be granted in FY2022 is expected to rise to the 600 billion mark.
In April 2022, the name of the points was changed to “PayPay Points” and measures for intra-Group cooperation were strengthened, enabling users to earn even more points for using services of Group companies, including SoftBank and Yahoo! JAPAN. Furthermore, with PayPay Atobarai (Pay Later), a service that allows users to pay the total amount spent with “PayPay” in a lump sum the following month by linking “PayPay” and “PayPay Card,” users can earn 1.0% to 1.5%*3 of the payment amount as points if they use “PayPay” or “PayPay Card.” When “PayPay Card Gold” is linked to the app, the grant rate will increase to between 1.5% to 2.0%*4. In addition to these measures, many users registered “PayPay” as the service to receive Myna Points from the Myna Points Project implemented by the Ministry of Internal Affairs and Communications, which led to a significant increase in the amount of points granted. Moreover, the campaign held in cooperation with local governments across the country was utilized by many users in FY2022, who received points of up to 40% of the purchase amount by paying for goods and meals with the PayPay app*5 in the participating municipalities.
1 PayPay Point is equivalent to 1 yen when making a payment with “PayPay,” and the points do not expire, so users can collect and use them whenever they find appropriate. In addition to being able to use the points at many brick-and-mortar stores and online services, the points can also be used for financial services available on the PayPay app, such as “Earn Points” where one can easily experience simulated investments with PayPay Points, or “PayPay Insurance (1 day insurance)” where users can subscribe to insurance plans hassle-free. PayPay will continue to promote the expansion of shops and services where PayPay Points can be earned and used.
*1. Number of users who have registered an account as of February 2023.
*2. The share for PayPay is calculated by PayPay based on the data disclosed by PAYMENTS JAPAN (Survey of Domestic Code Payment Usage Trends (published on January 13, 2023).
*3. When paying with PayPay Balance, 0.5% of the payment amount will be granted as “PayPay Points,” but the grant rate will increase to 1% or 1.5% when the conditions of PayPay STEP are met or PayPay Atobarai is used for payments.
*4. Users can get up to 2% by meeting the conditions of PayPay STEP. The grant rate may vary depending on the previous month’s usage. Some services, including Yahoo! JAPAN Shopping (excluding furusato nozei, Japan’s hometown tax program) and LOHACO may be excluded from some benefit programs. For more details, please see the usage benefits of the service.
*5. Only designated PayPay payments at stores participating in the campaign qualify for the benefits.
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 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 5 types of PayPay Balance: PayPay Money, PayPay Money Lite, PayPay Points, PayPay Bonus Lite, and PayPay Gift Voucher.
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, and is issued by PayPay 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 protects the debt it owes to its users in by depositing assets equivalent to or more than the debt amount. 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 in transactions at 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 it will no longer be valid. PayPay Gift Voucher is a type of electronic money issued by PayPay, which can be used to make payments for affiliated services and merchants designated by the PayPay Gift Voucher. However, it cannot be transferred to other users or cashed out. PayPay Gift Vouchers are valid for six months after issuance, after which they 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, providing that certain conditions are met, the user can be compensated for the damages suffered (the difference will be provided as compensation if compensation is also provided by a third party). 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.
