PayPay Corporation (hereinafter PayPay) is pleased to announce that it has started accepting contracts with neighborhood and community associations nationwide for its cashless payment service “PayPay,” enabling payments for association fees and events such as festivals organized by the associations via PayPay(*1). The first neighborhood association to introduce PayPay is the Iwaicho Hara Daiichi Neighborhood Association in Hodogaya Ward, Yokohama City.
It is said that there are approximately 300,000 neighborhood and community associations in Japan（*2）, and it is common practice to collect membership fees in cash. This process is time-consuming and burdensome for treasurers, poses risks of loss or theft, and requires members to prepare cash in advance, among other challenges. By introducing PayPay, the transition to cashless of neighborhood and community associations will be strongly supported, reducing the burden and risks of collecting fees, and simplifying monetary transactions during events organized by the associations.
※1 Cannot be used to make donations.
※2 Report by the Ministry of Internal Affairs and Communications Research Group on Regional Communities（published in April 2022）
PayPay already collaborates with local governments nationwide to support cashless payments for various certificates at service counters, facility usage fees, and various taxes such as resident tax and automobile tax through PayPay’s bill payment service. Currently, PayPay’s bill payment service is available in over 1,700 municipalities. With this new initiative, it is now possible to introduce PayPay at the level of neighborhood and community associations, which are regional activity organizations composed of residents of specific areas, enhancing convenience for local residents and reducing the burden on treasurers through cashless payments.
PayPay will continue to expand its value provision not only to users and service providers but also to neighborhood and community associations, striving to create a world where cashless payments can be enjoyed 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.
＜Introduction of PayPay to Neighborhood and Community Associations＞
■ Availability of payments by “PayPay”
| Available for | Not available |
|---|---|
| ・Neighborhood/community association fees ・Sales of goods and services at events organized by the associations（※3） |
・Donations |
※3 Vendors are limited to neighborhood associations only. PayPay cannot be used for events where vendors other than the associations are present.
■ Application and contract
The following documents are required to apply for use, which will be screened by the company.
・ Terms & conditions of the neighborhood/community association
・List of executives
・Identification documents, etc. of the contract holder（※4）
※4 The contract holder must be the president of the neighborhood/community association.
＜Introduction of PayPay to the Iwaicho Hara Daiichi Neighborhood Association in Hodogaya Ward, Yokohama City＞
Overview of the Neighborhood/Community Association
Name of association：Iwaicho Hara Daiichi Neighborhood Association
Location：Iwaicho, Hodogaya Ward
Chairperson：Etsuko Koishikawa
Background and Process
In Yokohama City, a model project to support the digital transformation（DX）of neighborhood and community association operations, including the introduction of information transmission apps for circulating publicity materials and cashless payment for fees, has been implemented in the fiscal year 2023. Hodogaya Ward was selected as one of the areas for this model project. Through discussions among the Iwaicho Hara Daiichi Neighborhood Association, Hodogaya Ward, and PayPay, the introduction of the cashless payment service “PayPay” was realized.
■ 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 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” provides 3 types of PayPay balance：PayPay Money, PayPay Money Lite, and 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, PayPay Points 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 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.
