Press Release

From June 2023, merchants*9 that have adopted the cashless payment service “PayPay” and that have also introduced “Alipay+” started accepting payments by “TrueMoney” from Thailand, “Touch ‘n Go eWallet” from Malaysia, as well as “GCash” and “HelloMoney by AUB” from the Philippines. Additionally, support for Taiwan’s cashless payment services “JKO Pay,” “PXPay Plus,” and ” E.SUN Wallet” was launched in October 2023 for merchants in Japan that support MPM “PayPay” payments.

With this, in addition to the already-integrated “Alipay” from mainland China, “AlipayHK” from Hong Kong, and “Kakao Pay” from South Korea, a total of more than 1 billion users of these services can now pay for food, drinks, souvenirs, accommodation, etc. with QR codes placed at PayPay merchants when they visit Japan.

*9. Only merchants that adopted PayPay with the MPM method, in which users scan QR codes placed in stores.

PayPay has expanded PaaS initiatives to make “PayPay” payment functions available in partner companies’ apps. In April 2023, the “PayPay” payment function became available on the “Monte App,” in June on the “Ministop App,” and in August on the “Welcia Group App.”

Integrating “PayPay” into their own apps allows partner companies to improve user convenience by offering a payment feature without having to develop it from scratch. “PayPay” users can link their apps with only a simple initial setup, which could lead to a larger user base. PayPay will continue to strive to have as many partner companies as possible adopt the “PayPay” payment platform.

In July 2023, a feature was launched allowing offline mobile payments, when no internet connection is available due to network outages or for other reasons.*10 With this new function, users can make payments with both “PayPay Balance” and “Credit (Pay Later)” (payment amount and frequency are limited) in case of network outages, but also in underground or extremely crowded locations such as major events, when connectivity may become unstable.*11 This function is the first of its kind to be implemented by a leading QR code payment company in Japan*12 and is the subject of multiple patent applications.

*10. When payment is made using this function, the user’s screen will not redirect to the post-payment screen, and the payment jingle will not be played. When the user is in a stable network environment they will be able to receive push notifications and check their transaction history.
*11 Payments can be made using this feature when the time required to display the barcode using the regular network connection exceeds three seconds.
*12 Information obtained by comparing PayPay with other domestic QR code payment providers as per data published by PAYMENTS JAPAN (as of July 20, 2023).

In June 2023, a new “Points” icon was added, providing access to all information on points, including the amount of points a user holds, scheduled amount to be granted, points history, and information on promotional campaigns. With the addition of the new icon summarizing points information and tips on how to accumulate them, users can now easily check how much points they saved and further enjoy their PayPay Points “poikatsu” (point-saving activities).

In May 2023, “PayPay” became available as a payment method for various Apple services such as App Store, Apple Music, Apple One, Apple TV+ and iCloud+.*13 “PayPay” is the first QR code payment service in Japan introduced as a payment method for Apple services. By linking their Apple ID and PayPay account, PayPay users can use “PayPay” to purchase paid apps, make in-app purchases, and charge their Apple account (Apple ID) balance at the App Store.

*13. Apple services include App Store, Apple Music, iCloud+, Apple Books, Apple Arcade, Apple TV+, iTunes Store, Apple Podcasts, and Apple One.

PayPay Securities will begin handling NISA account transactions in 2024 to accommodate the start of the new NISA system launching January 2024. In line with this, the “PayPay Invest” mini app*14 within “PayPay” started accepting applications for opening a NISA account on October 1, 2023.*15

*14. A mini app is a feature that allows users to smoothly make reservations, order products, and purchase services provided by PayPay’s partner companies from the PayPay app.
*15. Transactions using the NISA account will begin in January 2024.

In July 2023, PayPay Corporation has connected its services with 241 credit unions in Japan, the Minami Nippon Bank and the Shonai Bank, with connections to the Hokuto Bank and Bank of the Ryukyus following in August, bringing the number of financial institutions from which a user’s balance in “PayPay” can be topped up without a fee to 1,000. When topping up balance from a registered bank account, no fee is charged, regardless of the number of top-ups performed.

PayPay now supports approximately 90% of the 1,134 financial institutions connected to the Zengin system, making it the fastest cashless service provider to reach the 1,000-company milestone, after nearly five years since its service was launched.

In April 2023, a function was added to “PayPay Invest” allowing users to purchase securities using PayPay Points. Purchases can be made with a combination of PayPay Money and PayPay Points, in increments of 1 yen or 1 point (equivalent to 1 yen), starting from a minimum purchase amount of 100 yen. The proceeds from selling securities will be immediately topped up*16 to the user’s PayPay Balance (PayPay Money), which can be used for shopping.

*16. This is a feature provided by PayPay, in which a top-up is made immediately after an ETF is sold, or in the case of a mutual fund, one business day before the delivery date.

“Cho PayPay Matsuri (Super PayPay Festival),” a large-scale campaign that allows savings on purchases at PayPay merchants nationwide and online stores, was held between June 15 and August 20, 2023. PayPay also held the “PayPay Identity Verification Jumbo,” where users who have verified their identity had a one-in-four chance of winning a prize, as well as the “Cho PayPay Matsuri: PayPay Coupons” and various other special promotions.

In addition, the “PayPay Finance Debut Festival” was held, offering users 200 PayPay Points for registering for “Credit (formerly Pay Later),” “PayPay Bank,” and “Earn Points” from the PayPay app. Various campaigns by LY Corporation and SoftBank Corp. were also held, with special offers promoted by each company allowing users to experience the benefits of the PayPay ecosystem.

The “Support Your Local Town Project,” initiated in response to the significant impact of COVID-19 on local economies, has been further expanded, and as of October 2023, a total of 919 promotional campaigns have been held or scheduled by 449 municipalities in 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 multiple advantages for both local governments and users, the number of municipalities running these promotions is increasing (each municipality is allowed to hold a maximum of nine promotional campaigns). More are scheduled to be held in various cities and towns.

PayPay continues to collaborate with local governments by participating in the Municipal Myna Points Project and revitalizing local communities through the use of PayPay gift vouchers.

In order 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 will take preventative measures, such as immediately suspending the target account. From August 2019, PayPay established a full compensation system*17 in case of any damage.

*17. Compensation might not be provided for damages caused intentionally or by gross negligence on the part of the victim.

In June 2023, as part of its enhanced security measures, the company launched a new authentication feature that allows PayPay accounts to be transferred by scanning the QR code displayed on the old device with the new device, when changing devices without changing the phone number through MNP (Mobile Number Portability).*18 This feature improves user convenience by allowing PayPay accounts to be easily transferred to a new device, and also prevents malicious third parties from taking over the user’s PayPay account, since they do not have access to the QR code for authentication displayed on the old device.

Additionally, until now, one-time passwords sent via SMS were used for authentication when changing devices without changing the phone number through MNP, but now authentication will instead be completed by tapping a URL sent by SMS, which is also more secure.*19

*18. PayPay has obtained a patent for providing the QR code authentication feature.
Patent number: 7247416
Name of invention: Information processing device, information processing method, and program
Date of patent registration: March 17, 2023
*19. PayPay has obtained the two patents below for providing the SMS URL authentication feature.
Patent number: 7202500
Name of invention: Information processing device, information processing method, and program
Date of patent registration: December 27, 2022
Patent number: 7271779
Name of invention: Information processing device, information processing method, and program
Date of patent registration: April 28, 2023