Press Release

PayPay Corporation（Minato-ku, Tokyo; President & Representative Director, CEO, Corporate Officer: Ichiro Nakayama; hereinafter “PayPay”）, PayPay Bank Corporation（Shinjuku-ku, Tokyo; President & Representative Director: Tomohito Takusari; hereinafter “PayPay Bank”）, and PayPay Securities Corporation（Chiyoda-ku, Tokyo; President & Representative Director: Kenji Bansho; hereinafter “PayPay Securities”）are pleased to announce the launch of a service that allows users to skip part of the procedure required to open an account in mini apps（※1）”PayPay Bank” and “PayPay Invest” within the cashless payment service “PayPay,” such as taking a photo of the necessary identity documents and the applicant, provided the user has completed their identity verification（eKYC）in the PayPay app（※2）
This will be a significant improvement for the more than 25 million PayPay users who have already verified their identity （eKYC; as of November 2023）when opening an account via the mini app—just two steps for PayPay Bank and three steps for PayPay Securities.

※1 A feature that allows users to smoothly make reservations, order products, and purchase services provided by PayPay’s partner companies from the PayPay app.
※2 PayPay has obtained the following patent with respect to the provision of this service.
Patent number: 7280420
Title of invention：Payment management device, payment management system, payment management method, and program
Patent registration date: May 15, 2023

This feature enables the user who has completed their identity verification in PayPay to skip part of the identity verification procedure required when they start using “PayPay Bank” or “PayPay Invest”（when opening a bank account with PayPay Bank or opening a securities account with PayPay Securities） by linking their identity verification information as a PayPay user*3 to PayPay Bank or PayPay Securities.（※4）
The conventional procedure was more complicated, such as requiring the user to take a photo of themselves in addition to a photo of their identity document, but certain steps can now be skipped.

※ This feature may not be applied to some users.

※3 More than 25 million PayPay users have completed their identity verification（eKYC）as of the end of November 2023, as the company continues to promote it through various initiatives such as the “PayPay Identity Verification Jumbo.”
Reference: Over 25 Million Users Complete “PayPay” Identity Verification（eKYC）!
See “Verify Identity” for more details on the identity verification procedure in “PayPay.”
※4 The user’s consent is required to link the identity verification information.

＜Procedure to open an account with PayPay Bank from the mini app “PayPay Bank” within “PayPay”＞

Only these two steps are required to complete the procedure.

With the “PayPay Bank” mini app provided by PayPay Bank within “PayPay,” users can smoothly avail themselves of banking services such as opening an account, balance inquiries, checking bank statements, and direct deposits, all through “PayPay.” The service has proven widely popular with many users since its launch in August 2022. For more information, please see the PayPay Bank Easy User Guide Page.

＜Procedure to open an account with PayPay Securities from the mini app “PayPay Invest” within “PayPay”＞

Only these three steps are required to complete the procedure.

※ Since January 1, 2016, users newly transacting with a securities company are required to provide the securities company their My Number upon opening an account.
Reference：Japan Securities Dealers Association Website “About My Number”

“PayPay Invest” is a mini app provided by PayPay Securities within the PayPay app, a service allowing easy access to asset management. Users can open a securities account and trade securities with their PayPay Balance（PayPay Money）and PayPay Points. Regular investments in mutual funds using “PayPay Credit” is also supported. See “PayPay Invest」” for details.

PayPay Securities also supports NISA account transactions as of January 2024. Users can apply for a NISA account at the same time they apply to open a securities account from “PayPay Invest.” This feature is expected to contribute to lowering the barrier to asset management in line with the government’s “Doubling Asset-based Income Plan” which aims to increase the number of people with investment experience. PayPay Securities will continue its initiatives to “update” asset management under the belief that “Your first step into asset management should be with PayPay Securities.”

※5 “PayPay Credit” refers to the “Credit（Pay Later）” feature.

‌■ About PayPay Bank

PayPay Bank（formerly Japan Net Bank）was established in 2000 as Japan’s first bank specializing in internet banking, and currently serves over 7.38 million accounts（as of September 2023）.
After rebranding to “PayPay Bank” in April 2021, it has further strengthened its partnership with PayPay, launching the PayPay Bank mini app within the PayPay app in August 2022.
PayPay Bank” mini app users can smoothly avail themselves of banking services, such as opening accounts, balance inquiries, checking bank statements, and direct deposits, all through “PayPay.”
Also, PayPay users can cash their PayPay Balance（※6）out to their PayPay Bank account free of charge（※7）. As such, PayPay Bank remains committed to pursuing various initiatives so users can access great deals through “PayPay” across various scenes.
In addition, PayPay Bank offers strong support in helping PayPay merchants to go cashless through services such as collecting only 20 yen（tax excluded）for the “Early Payout Service（※8）”（200 yen（tax excluded）is charged for financial institutions other than PayPay Bank）, which gives the merchants the freedom to choose when they would like the proceeds from their sales paid out.
PayPay Bank’s mission is to “Make financial services as accessible as air,” and the company will continue to work toward the goal of providing financial services that are unseen yet indispensable, and that people happen to be using by the time they notice.

※6 See “What is PayPay Balance and PayPay Points” for more details on PayPay Balance. The only type of PayPay Balance that can be cashed out to a bank account is PayPay Money.
※7 See “Cashing PayPay Balance out（withdrawals）to a bank account” for details on withdrawals.
※8 See “Early Payout Service” for more details.

‌■ About PayPay Securities

PayPay Securities started its services as Japan’s first smartphone-based securities company in June 2016, with the vision of making asset management more accessible by providing the environment for anyone to easily begin managing their assets. In February 2021, the company changed its name to PayPay Securities to align with the PayPay brand, aiming to evolve into a highly convenient service closely integrated with daily life through its partnership with PayPay.
To further lower the barriers to investing, the “Earn Points” service, which enables users to experience simulated investments using PayPay Points, was rolled out in April 2020（this service was transferred to PPSC Investment Service Corporation, a wholly-owned subsidiary of PayPay Securities, in July 2022）, and in August 2022, the PayPay Invest mini app was launched within “PayPay.” NISA account transactions are also supported as of 2024.

‌‌■ 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 the “Send/Receive” feature（remittance/transfer and receiving of money）that allows users to transfer their PayPay Money and PayPay Money Lite between each other for free, or “Earn Points,” 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 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 Cards（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.