PayPay Corporation（hereinafter, PayPay）is pleased to announce that out of the 64 million（※1）registered users of the cashless payment service “PayPay,” the number of users who have completed identity verification exceeded 30 million in June 2024. Verified users can access all PayPay services, including higher payment limits for “PayPay Credit”（※2）and top ups from a bank account, accounting for 82% of total payment volume and 78% of total number of payments.（※3）Verified users utilize PayPay more frequently compared to those who have not completed verification.
※1 As of June 2024. This is the number of users with registered PayPay accounts.
※2 Usage may not exceed the limit separately set by PayPay Card Corporation.
※3 Percentage of identity-verified users in the total payment volume and count for “PayPay” as of May 2024.
The functions and services available at PayPay differ between users who have completed identity verification（eKYC）and those who have not. By completing identity verification, users can access all functions and services provided by PayPay, such as topping up from and cashing out to a bank account, higher limits for payments and transfers, and partially streamlined procedures for opening accounts with PayPay Bank and PayPay Securities. Additionally, compensation for damages in the event of fraudulent use can be received approximately twice as quickly compared to users who have not completed verification, further enhancing the safety and security of using PayPay. For details on the identity verification process, please refer to the following link: https://paypay.ne.jp/help/c0118/
In November 2023, PayPay was designated by the Financial Services Agency as an “Essential Social Infrastructure Provider,” an irreplaceable critical infrastructure business, from among many financial institutions. As a leading company in cashless payment services used by 64 million people,（※1）PayPay is strengthening its security measures. In the fiscal year 2023, PayPay invested over 4 billion yen in fraud prevention, resulting in a fraud incidence rate of 0.002%, which is less than one-twentieth of the 0.051% fraud incidence rate for credit cards.（※4）This fiscal year, PayPay continues to implement fraud prevention measures using the latest technology and dedicated engineers. Additionally, to provide a safe and secure environment, PayPay is promoting users’ identity verification to raise the level of anti-money laundering and anti-terrorist financing measures to prevent criminal activities and the misuse of services by terrorist organizations.
※4 Credit Card: Based on statistics from the Japan Credit Card Association, “Credit Card Statistical Survey Results（Credit Provision Amounts and Number of Contracts）,” and “Status of Credit Card Fraud Damages.”
Calculated as（Fraud Damages ÷ Credit Provision Amount）from page 2 of the following link. https://www.meti.go.jp/shingikai/mono_info_service/credit_card_security/pdf/001_03_00.pdf
＜Differences Between Identity-Verified（eKYC）and Unverified Users＞
Moving forward, PayPay will continue to promote identity verification by offering highly convenient services to verified users, making our infrastructure to provide services even safer and more secure. Additionally, PayPay aims to leverage identity verification information for not only its own services but also for login functions and personal information change processes across various services, ensuring a safe and secure user experience.
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 Certificates.
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.
