PayPay Corporation (Head Office: Minato-ku, Tokyo; President & Representative Director, CEO, Corporate Officer: Ichiro Nakayama; hereinafter “PayPay”) is pleased to announce that on April 1, 2023, it has submitted the application as a Fund Transfer Operator to receive designation by the Minister of the Ministry of Health, Labour and Welfare (MHLW) in a step towards supporting digital payment of wages (digital payroll).
Digital payment of wages (digital payroll) is an option available to employers and workers to pay and receive wages. Based on the demand to use Fund Transfer Operator accounts for the transfer of wages and also against the backdrop of the growing prevalence of cashless payments and diversification of remittance services, employers will be given the option to transfer wages of workers who have given their consent into accounts provided by Fund Transfer Operators that have satisfied the necessary requirements and received a designation by the MHLW Minister to support digital payment of wages (digital payroll).
The requirements to become a designated Fund Transfer Operator were established at the Labour Conditions Subcommittee Meeting of the Labour Policy Council of the MHLW, based on discussions among representatives of workers, employers, and experts on public interest.
PayPay believes that the digital payment of wages (digital payroll) will offer users (workers) more freedom by adding a new method to receive wages, as well as provide more convenience by eliminating the current hassle of users when topping up their PayPay Balance.
Through services such as “PayPay Invest” or mini apps* like “PayPay Insurance (1 day Insurance),” PayPay has already increased the breadth of financial services that can be used seamlessly through the PayPay app. PayPay will continue to add new services, starting with receiving paychecks, and improve on existing ones, so that users can manage their assets through a full suite of solutions.
On the employer’s side, PayPay expects that this will benefit efforts to manage human resources or hire talent as it can help enable more diverse work styles, including taking on side hustles.
Furthermore, it is PayPay’s wish that this will contribute to the Japanese Government-backed initiative of further driving the spread of cashless payments.
*A feature that allows users to easily make reservations, order products, and purchase services provided by PayPay Corporation’s partner companies from the PayPay app.
PayPay will start supporting digital payment of wages (digital payroll) after undergoing a review by the MHLW and receiving the Minister’s designation. After receiving the designation, PayPay will first start accepting applications from users who opt to receive their wages in the PayPay app upon the launch of the service.
Further details including service specifications will be announced as soon as they are determined.
Visit the following website provided by the MHLW for an overview of digital payment of wages (digital payroll) as well as the related laws, regulations, and announcements.
(Reference)
MHLW: Payment of wages (digital payroll) in Fund Transfer Operator accounts
https://www.mhlw.go.jp/stf/seisakunitsuite/bunya/koyou_roudou/roudoukijun/zigyonushi/shienjigyou/03_00028.html
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 BalancePayPay is registered as follows: (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)
・Business Operator that Concludes Contracts on the Handling of Credit Card Numbers, etc., Registration #: Kanto (K) No. 106 (Registration date: July 1, 2019)
・Telecommunications Carrier (Filing #: A-02-17943 / Date filed: July 2, 2019)
・Fund Transfer Operator, Registration #: Director-General of the Kanto Finance Bureau, No. 00068 (Registration date: September 25, 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)
・Japan Payment Service Association (https://www.s-kessai.jp/, Date of admission: September 12, 2018)
・Japan Consumer Credit Association (https://www.j-credit.or.jp/, Date of admission: July 1, 2019)
* “PayPay” provides five 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, 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.
