Press Release

PayPay Corporation is pleased to announce that out of the 58 million registered users*1 of its cashless payment service “PayPay,” 20 million*2 users have completed identity verification (eKYC). This means that 1 in 4.8 smartphone users*3 in Japan have completed eKYC on PayPay. In addition, users who have verified their identity on “PayPay” account for 66% of “PayPay” gross merchandise value and 62% of the total number of payments*4.

*1. Number of users who have registered an account with PayPay as of June 2023.
*2. As of May 2023.
*3. Calculated by PayPay based on “Population Projections – August 2022 Report” published by the Statics Bureau of Japan and “1. Information Communication Devices Ownership in “2021 Telecommunications Usage Trends Survey” published by the Ministry of Internal Affairs and Communications.
*4. As of May 2023.

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 security standards against money laundering and financing of terrorism to prevent the app’s misuse in criminal activities and by terrorist organizations. Throguh such effort, the number of “PayPay” users who have completed identity verification (eKYC) has exceeded 20 million in May 2023. As part of this eKYC promotion initiative, PayPay has been regularly holding various campaigns. In the “PayPay Identity Verification Jumbo,” which has been running since June 15, users who have completed eKYC have a one in four chance to win one of three prizes in a lottery when they make a payment with an eligible PayPay payment method at a participating store.

Additionally, once users complete identity verification, they will be able to top up their PayPay Balance from their bank account, use PayPay Money, increase the number of stores where they can use “PayPay,” and increase the limit*5 of PayPay Atobarai (Pay Later)*6.

*5. The amount may be lower than 500,000 yen (for the last 24-hour period) depending on registration details and usage. For more information on the usage limit of PayPay Atobarai, please click here.
*6. “Pay Later” will be changed to “Credit” in the list of payment methods on August 1, 2023 For more details, please visit here.

In addition, identification may be required to use the convenient features of “PayPay” that are currently offered and may be needed for the advanced features and services that will be introduced in the future. For more details on the identity verification in “PayPay,” please click here.

【Benefits of completing identity verification (eKYC) 】

Identity verification for “PayPay” only takes two minutes at minimum by scanning the IC chip in a My Number Card or driver’s license, and the screening process could be completed on the same day. Of all the identity verification applications on PayPay, approximately 50% (*7) are screened by JPKI (public certification service) (*8), contributing to the effective use of the My Number Card, promoted by the government.

*7 The JPKI that PayPay utilizes the Electronic certificate of the bearer’s signature logged in the My Number Card to prove the identity of a person recorded in the basic resident register.
*8 Results from May 1 – 31, 2023. Researched by PayPay.

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.”

* Please use the latest version of the PayPay app.

■ 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)
・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 4 types of PayPay balance: PayPay Money, PayPay Money Lite, PayPay Points, and Gift Vouchers.
PayPay Money can be used to pay for partner services and in transactions at merchants if the transaction value 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, 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 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.