Press Release

PayPay Corporation (hereinafter “PayPay”) is pleased to announce its KPIs including the number of users, as well as the main initiatives it carried out in the second half of FY2022.

The number of registered “PayPay” users and the number of payments continued to grow steadily from the previous fiscal year. The number of registered users exceeded 57 million in April 2023, as the company continues to grow as an indispensable social infrastructure for payments. In FY2022, the consolidated gross merchandise value reached 10.2 trillion yen, and the number of payments exceeded 5.1 billion, approximately 1.4 times greater year on year. In addition, the amount of PayPay Points issued in the same period amounted to over 600 billion points. The number of remittances using the Send/Receive feature also continued to grow, reaching approximately 200 million transactions, up 1.9 times from the previous fiscal year.

【Number of registered users, payments, remittances, and merchants】

*1. Number of users who have registered a PayPay account.
*2. Does not include the number of times users used the “Send/Receive” feature for sending PayPay Balance between users or the number of times payments were made using the Alipay app.
*3. When sending PayPay Money, it is a “remittance,” and when sending PayPay Money Lite balance, it is a “transfer.” Please refer to the PayPay Balance Terms of Use for details.
*4. Total number of locations registered with “PayPay” as of March 2023.
*5. Number of merchant locations where “PayPay” is available as of March 2023.
(e.g.) An e-commerce mall with multiple stores is counted as one location, and even if multiple “PayPay” payment methods are installed in a single store (scanning the store’s QR code or the user showing their barcode), it is also counted as one location.

In FY2022, besides increasing the number of registered users and use cases of its services in physical stores and online services, PayPay took various initiatives to develop its array of financial services, including the launch of “PayPay Invest” and the mini app “PayPay Bank,” the acquisition of PayPay Card Corporation as a wholly owned subsidiary, and investment in PayPay Securities Corporation. Remittances using the Send/Receive feature continued to increase, accounting for more than 92%*6 of remittances among mobile payments services in 2022.
In addition, efforts to help merchants in their DX*7 to accelerate operational improvements and streamlining of sales activities were conducted, including the launch of the PayPay Flyer service.

PayPay will strive to improve user convenience, social productivity, and sustainable business practices by continuing to promote cashless payments, alongside adding and enhancing its services.

*6. The share of “PayPay” was calculated by PayPay based on the publication by PAYMENTS JAPAN, “Stats – Code Payment,” published on March 3, 2023.
*7. 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”)

【PayPay’s Initiatives in the Second Half of FY 2022】

＜Addition of new services and expansion of existing ones＞

＜Further growth of financial services＞

＜Campaigns with special & attractive offers＞

＜Efforts in pursuit of safety and security＞

＜Addition of new services and expansion of existing ones＞

Over 600 billion PayPay Points granted in FY2022

The total amount of PayPay Points issued in FY2022 surpassed 600 billion points. PayPay launched its points program back in October 2018 at the same time it launched the PayPay app, through which PayPay Points (formerly PayPay Bonus) are granted based on the purchase amount. The volume of points being issued has increased thanks to the PayPay app being enjoyed by many more users with its ease of use and expanding range of use cases, and in just four and a half years since its launch, more than 600 billion points were issued in a single year.

The total number of PayPay Points users currently stands at more than 170 million*8.

In April 2023, the number of people registered with “PayPay” under the Myna Points Project, implemented by the Ministry of Internal Affairs and Communications from September 1, 2020, exceeded 20 million*9, and the total amount of points to be granted*10 has reached over 300 billion yen worth.

*8. Total number of registered “PayPay” users (57 million as of April 2023), subscribers to smartphone plans of SoftBank, Y!mobile, and LINEMO that allow possession of PayPay Points (28.65 million as of December 31, 2022), and monthly Yahoo! JAPAN users (85 million according to Nielsen’s “Tops of 2022: Digital in Japan, Top 10 Total Digital Reach in Japan,” average monthly users from January to October 2022 not including overlapping smartphone and computer users). If a user owns PayPay Points, they can use the points by registering an account with one of these services.
*9. The number of registered users is counted as “one” when a person who has registered for PayPay when obtaining a new My Number Card applies for its use as a health insurance card and registers an account for receiving public money.
*10. Includes points that have been processed and are scheduled to be awarded but have not yet been received by the user.

Launch of LYP Mileage, a new sales promotion service

LINE, Yahoo! JAPAN, and PayPay launched the LYP Mileage program on March 1, 2023, a mileage-based sales promotion service that requires no application or registration, and which automatically provides rewards based on the purchase amount of each eligible product. LYP Mileage allows users to save more by buying various products offline and online, whether they be beverages or various other everyday items.

As a service that fully leverages the strengths of the three companies, LYP Mileage is scheduled to be integrated with official LINE accounts of participating companies, in an effort to enable direct sales promotions by companies to users.

Launch of PayPay Gift Vouchers as a new payment method

Launched in November 2022, PayPay Gift Vouchers is a new payment method with which the expiration date and scope of use can be specified before being issued by PayPay. It has become available on Satofull, the portal site for making hometown tax donations, as a payment method at stores and facilities in areas designated by the local government to which a donation is made. Users can obtain PayPay Gift Vouchers in Satofull by selecting both the local government*11 to which they wish to donate to as well as the amount of the donation. The acquired PayPay Gift Vouchers can be used within the municipality at stores and facilities that offer goods and services that meet the local government’s product standards. The vouchers have a validity of up to 180 days after the donation is made, and can be used to pay for food, beverages, activities, lodging, and other services when visiting the municipality.
As of April 7, 2023, PayPay Gift Vouchers are available in 315 municipalities.

*11. PayPay Gift Vouchers can be used only in the municipalities that support the payment method.

Launch of PayPay Flyer, an e-flyer service with more than 15,000 stores participating. PayPay Stamp Card reaches 13 million users and PayPay Coupon 15 million.

In February 2023, PayPay began offering PayPay Flyers, a service that allows users to view flyers posted by merchants (currently over 15,000 stores*12) on the PayPay app. With this service, users can find flyers of stores they frequent and discounts on “PayPay” with only a few taps, while merchants can easily promote special deals and seasonal products to the more than 57 million PayPay users. Moreover, store owners can easily measure the effectiveness of PayPay Flyers unlike paper flyers, such as how many PayPay payments were made during the period the flyers were posted.

In addition, the number of PayPay Stamp Card users, which is also offered as a DX measure for merchants, topped 13 million*13 and there are also now over 15 million PayPay Coupon users*14. PayPay will continue to improve its features to help merchants conduct sales promotion activities with less effort and so that users can have a smoother experience while making savings on their purchases.

*12. As of April 2023.
*13. As of April 2023. The total number of users who have received stamp cards in the past.
*14. As of March 2023.

The first overseas development center in India to increase development speed and product quality

In October 2022, PayPay established the Pay2 Development Center, its first overseas development base, in the state of Haryana, India. By establishing a base in India, which has an abundance of IT talent, the company aims to further improve its development speed and product quality by locally hiring talented engineers and creating a development structure with two bases, one in Japan and the other in India.

＜Further growth of financial services＞

PayPay Card became a wholly owned subsidiary for enhanced collaboration. Launch of “PayPay Card Gold” and over 10 million active “PayPay Card” members.

On October 1, 2022, PayPay Card Corporation became a wholly owned subsidiary of PayPay, setting the stage for providing services that offer an even more convenient and profitable experience for users.
Furthermore, in November 2022, “PayPay Card Gold,” a credit card that allows users to earn more PayPay Points than the “PayPay Card” was launched.
In addition, the number of valid holders of PayPay Card*15 exceeded 10 million by the end of FY2022. “PayPay” accounted for approximately two-thirds of the total domestic code payment gross merchandise value in FY2021, making it the No. 1 service provider in Japan*16, but the company will not stop here and will continue to work with PayPay Card to further promote cashless payments.

*15. Includes payments through “PayPay Atobarai (Pay Later)” launched in February 2022.
*16. The share for PayPay is calculated by PayPay based on the data disclosed by PAYMENTS JAPAN (Stats – Code Payment in FY2021).

Investment in PayPay Securities to further strengthen alliance. “Earn Points,” a simulated investment feature in the PayPay app, reaches 9 million users—the fastest in the industry. PayPay Points now available for purchases in “PayPay Invest.”

PayPay underwrote the capital increase through a third-party allotment of shares newly issued by PayPay Securities on April 10, 2023, and became the company’s largest shareholder. By accelerating the integration with PayPay’s various services, PayPay aims to further improve the convenience and customer satisfaction of the services provided by PayPay Securities.
Additionally, “Earn Points*17,” a service which allows users to experience simulated investments as a mini app*18 within the PayPay app, surpassed 9 million users in March 2023. Achieving such a user base in less than three years since the service was launched in April 2020, is the fastest growth*19 among major point investment service providers.

*17. “Earn Points” has been provided by PPSC Investment Service Corporation (a wholly owned subsidiary of PayPay Securities Corporation) from July 2022.
*18. 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.
*19. Based on a comparison between the following points investment service providers: au PAY Points Management, Credit Saison’s Eternal Points Investment Service, d POINT Investment, and Points Management by Rakuten PointClub, in alphabetical order (as of March 2023, research by PPSC Investment Service).

As the first step in strengthening the interconnectivity between PayPay Securities and PayPay, a feature that allows users to purchase securities using PayPay Points was added on April 8, 2023 to the PayPay Invest mini app, which allows users to trade securities within the PayPay app. In addition to purchasing securities, PayPay Points can also be used with the regular deposits feature to invest in mutual funds. As a service, this is expected to help make asset management more accessible in accordance with the government’s goal to increase investors as per the “Doubling Asset-based Income Plan.”

Japan’s first “Influenza Insurance,” and “Medical Care Insurance” that covers hospitalization and cancer, offered in “PayPay Insurance.” Total number of “Anshin Non-owner Car Insurance” purchases exceeds 500,000.

In January 2023, PayPay began offering the insurance industry’s first*20 influenza-specific insurance “Influenza Insurance” in the PayPay Insurance mini app. In addition to the simple coverage details and inexpensive premiums, being able to prepare for the possibility of contracting the flu with children at home has been well received by users, with 30,000 enrollments in just one month since its launch.

For more information on the Influenza Insurance, please click on the link below.

https://www.paypay-insurance.co.jp/promotion/influenza/app/

*20. Based on research by Aiaru syougakutankihoken Corporation (as of December 2022).

In addition, PayPay also began offering “Medical Care Insurance,” which provides coverage for injuries and illnesses. This product is reasonably priced and meets the needs of those who are considering purchasing a medical insurance plan for the first time due to lifestyle changes

For more information on each policy, please click on the link below.

https://www.paypay-insurance.co.jp/promotion/medical/app/

In February 2023, the “Anshin Non-owner Car Insurance (one-day auto insurance)” reached 500,000 policy purchases in 15 months after its rollout.

The service has proved popular by many users since they do not have to go to a convenience store or other places for the enrollment procedure.

For more information on “Anshin Non-owner Car Insurance,” please click on the link below.

https://www.paypay-insurance.co.jp/promotion/car/app/

* “Anshin Non-owner Car Insurance (one-day auto insurance)” is provided by PayPay Insurance Service Corporation and Sompo Japan Insurance Inc.

＜Campaigns with special & attractive offers＞

Launch of the large-scale campaign, “Cho PayPay Matsuri”

“Cho PayPay Matsuri (Super PayPay Festival),” the large-scale campaign that allows savings on purchases at PayPay merchants nationwide and online stores, was held between February 15 to April 16, 2023. In addition to the “Chance to Win All Over Japan! Super PayPay Jumbo,” various campaigns by Yahoo Japan Corporation and SoftBank Corp. were held during the campaign, with special offers provided by each company allowing users to experience the benefits of the economic sphere centered around PayPay. PayPay will continue to hold campaigns that enable users and merchants to experience the convenience that comes with the use of cashless payments, and to encourage even more people to use its services.

Expansion of the “Support Your Local Town Project,” a collaborative effort with local governments. Over 800 campaigns held in 46 prefectures.

The “Support Your Local Town Project,” which was initiated in response to the significant impact of COVID-19 on local economies, has been further expanded, and as of April 2023, a total of 810 campaigns have been or are confirmed to be held in 426 municipalities across 46 prefectures.

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. Because of the many advantages for both local governments and users, an increasing number of municipalities are running campaigns multiple times, with one particular local government holding up to 9 campaigns. More campaigns are scheduled to be held in various cities and towns.

＜Efforts in pursuit of safety and security＞

First fund transfer operator certified under the CBPR System (APEC Cross-Border Privacy Rules System)

In December, PayPay Corporation became the first fund transfer operator to be certified under the CBPR System (APEC Cross-Border Privacy Rules System). Moreover, PayPay is the fifth company in Japan*21 to receive the CBPR System certification.

The CBPR System is a set of rules for intra-regional*22 data transfer agreed upon by APEC (Asia-Pacific Economic Cooperation) in 2011, and is a mechanism that allows companies to securely exchange personal data across borders. Obtaining the CBPR System certification signifies that PayPay’s compliance with APEC’s privacy principles for the protection of cross-border personal data transfer has been recognized. PayPay has always been committed to the protection of personal data*23 and will continue to improve its operations so that the 57 million PayPay users can use PayPay’s services even more safely and securely.

*21. As of December 19, 2022.
*22. The nine countries participating in the CBPR System are Japan, the United States, Mexico, Canada, Singapore, South Korea, Australia, Taiwan, and the Philippines.
*23. For more information on the protection of personal data, please see here.

Robust eKYC initiatives. Identity verification (eKYC) completed by 18.5 million users

As the leading cashless payment services company, PayPay aims to provide even safer and more secure services, actively promoting identity verification and continuously raising the bar against money laundering and financing of terrorism to prevent the app’s misuse in criminal activities and by terrorist organizations.

As a result, in April 2023, the number of registered “PayPay” users who have completed identity verification (eKYC) reached 18.5 million.

PayPay recommends the scanning of IC chips in the My Number Card or driver’s license for identity verification as it shortens the screening time and makes it easier and faster to complete the verification process. Moreover, completing the verification process will mean that the user will gain access to more services. This includes the use of convenient features now existing in “PayPay,” as well as advanced features and services that will be introduced in the future. For more details on the identity verification procedures in “PayPay,” click here.

Countermeasures against unauthorized use for a safer “PayPay”

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 takes preventative measures such as immediately suspending the target account. From August 2019, PayPay established a full compensation system*24 in case of any damage caused.
The fraud rate of “PayPay” between January to December was as follows.

*24. Compensation may not be provided for damages caused intentionally or by gross negligence on the part of the victim.
*25. PayPay’s fraud rate is the percentage of the amount paid using “PayPay” between January 1 and December 31, 2022 that were claimed to be fraudulent.
*26. The credit card fraud 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).

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. For more information on anti-phishing measures, please see 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 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 Corporation 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 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.