PayPay Corporation (hereinafter “PayPay”) is pleased to announce that starting in December 2023,*1 the Send/Receive feature in the cashless payment service “PayPay” will be equipped with a functionality that allows users to prioritize remitting*2 PayPay Money.*3 Since PayPay Money can be withdrawn from a bank account, the recipient will now have more choices for using the money they receive from another user. Please note that only users who have verified their identity (eKYC) may remit money using this functionality, and recipients must also verify their identity if they wish to receive PayPay Money.
*1. This feature will be updated sequentially and all users will be supported by the end of December. Users must update their app to the latest version.
*2. When sending PayPay Money, it is a “remittance,” and when sending PayPay Money Lite, it is a “transfer.” Please refer to the PayPay Balance Terms of Use for details.
*3. PayPay Money is PayPay Balance that can be withdrawn from a bank account. ” Identity Verification (eKYC) ” is required to use PayPay Money. For more information on the difference between PayPay Money and PayPay Money Lite, click here.
Until now, PayPay Money Lite has been given priority when users send their PayPay Balance to another user. With this added functionality where PayPay Money is prioritized, recipients can now withdraw the received Balance from their bank accounts and use it for various other services, including “PayPay Invest” and some online services that only accept PayPay Money.
“PayPay” accounts for approximately 92%*4 of the total number of peer-to-peer remittances*5 amongst mobile payment service providers, and has leveraged multiple scenarios where such easy remittances are needed, such as with the Group Bill feature that makes going Dutch easier and Schedule functionality that allows regular automatic transfers of allowances.
PayPay has therefore added this new functionality that gives precedence to PayPay Money in peer-to-peer transfers, in order to further improve user convenience during the year-end and New Year’s holidays, when demand for money transfers increases due to the celebratory meals and parties during this time of year, as well as otoshidama (New Year’s gifts), and other such festivities. If users prefer to send PayPay Money Lite, they are free to change the setting at any time. If the PayPay Money balance is insufficient for the transfer, users can combine PayPay Money Lite. Note that if the recipient has not verified their identity (eKYC), that user will receive PayPay Money Lite even if PayPay Money is sent.
In addition, to ensure that users can safely use the service, various security measures have been implemented, including warning messages to prevent money transfer scams.*6 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.
*4. Including both PayPay Money remittances and PayPay Money Lite transfers.
*5. The share of “PayPay” was calculated by PayPay based on the publication by PAYMENTS JAPAN, “Stats – Code Payment,” published on March 3, 2023 (updated July 7, 2023).
*6. Please check (PayPay Help Page) for more information on fraudulent use and fraud prevention measures.
PayPay will continue to strive for a world where users and all types of restaurants and service providers can enjoy the convenience of cashless payment and use the cashless payment service with confidence anywhere in Japan. Furthermore, PayPay aims to evolve from a payment app into a super app that enriches users’ lives and makes them more convenient, fostering a world where paying “Anytime, Anywhere with PayPay” is a reality. As the company was designated by the Financial Services Agency as a Specified Essential Infrastructure Service Provider in November 2023, PayPay is committed to continue providing an even safer and more secure environment for users.
PayPay Corporation is registered as follows:
・Prepaid Payment Instruments (third party type) Issuer (Registration number: 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 number: Kanto (Ku) No. 106 / Registration date: July 1, 2019)
・Telecommunications Carrier (Filing number: A-02-17943 / Date filed: July 2, 2019)
・Fund Transfer Operator (Registration number: Director-General of the Kanto Finance Bureau, No. 00068 / Registration date: September 25, 2019)
・Notified Entity Entrusted with Intermediation (Filing number: C1907980 / Date filed: December 18, 2019)
・Bank Agency Services (License: Director-General of the Kanto Finance Bureau (Gindai) No. 396 / Registration date: November 26, 2020)
・Financial Instruments Intermediary Services (Registration number: Kanto Finance Bureau Director (Kinchu) No. 942 / Registration date: June 25, 2021)
・Electronic Payment Agency Services (License: Director-General of the Kanto Finance Bureau (Dendai) No. 109 / Registration date: February 14, 2023)
・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” offers four types of electronic money and other services: PayPay Money, PayPay Money Lite, PayPay Points, and PayPay Gift Vouchers.
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 services, 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 by depositing assets equivalent to or higher 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, it cannot be transferred to other users or 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 have an expiration date, after which they will no longer be valid. The deadline for Gift Vouchers can be confirmed in the details or specifications of the measure or promotion campaigns for which they are issued.
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.
