The “PayPay Paycheck” service will become available to employees of SoftBank group companies from August 14.
A dedicated website for employers（businesses）and employees（users）interested in “PayPay Paycheck” is scheduled to be published today.
Employers（businesses）can pay employees’（users’）salaries into their PayPay accounts via the traditional method of bank transfer.
PayPay Corporation（head office: Minato-ku, Tokyo; President & Representative Director, CEO, Corporate Officer: Ichiro Nakayama; hereinafter “PayPay”）is pleased to announce that it has received designation today from the Minister of Health, Labor and Welfare as a funds transfer operator supporting salary payments to accounts provided by a funds transfer operator（digital payment of wages）（hereinafter, digital salary payment）. Consequently, PayPay will offer “PayPay Paycheck” as a service that meets the designation requirements based on the Ordinance for Enforcement of the Labor Standards Act.
Employees（users）working for employers（businesses）that support digital salary payments will be able to, in addition to receiving their salaries in financial institution accounts or cash, receive salaries in their PayPay accounts as PayPay Money Balance（PayPay Money（Paycheck））（※1）via the traditional method of bank transfer from their employers.
Aiming to provide the service to all PayPay users（※2）within 2024, a dedicated website for both employers（businesses）and employees（users）interested in “PayPay Paycheck” is scheduled to be published today. The pages will include an overview of “PayPay Paycheck,” downloadable materials, FAQs, and a contact form to assist in considering the service.
※1 PayPay Money（Paycheck）is a type of PayPay Money newly established for the provision of digital salary payment services.
※2 “PayPay Paycheck” will be available to users who have completed identity verification.
Additionally, starting from August 14, “PayPay Paycheck” will be made available to employees of SoftBank Corp., LY Corporation, and other companies in the SoftBank group including PayPay, with salary payments to the PayPay accounts of employees who wish to use the service to begin accordingly.
A further announcement will be made when preparations are complete to offer “PayPay Paycheck” to all users of PayPay（excluding SoftBank group companies）.
“PayPay Paycheck” aims to enhance convenience for both employees（users）and employers（businesses）by offering the following services and features:
[ Services provided for users（employees）of “PayPay Paycheck” ]
Employees（users）are required to first confirm whether a labor-management agreement necessary for digital salary payments has been concluded at their workplace and if so, provide their consent to their employers. After applying for “PayPay Paycheck” through the PayPay app, a “Salary Account” for receiving salaries, a “PayPay Money Account（Paycheck）” for holding received salaries as PayPay Balance, and an “Account Number for Payment to the Salary Account（Bank Account Number）” for topping up the “PayPay Money Account（Paycheck）” via bank transfer will be set up within the PayPay account. The employees（users）should next provide the “Account Number for Payment to the Salary Account（Bank Account Number）” to their employers as the account to which their salary is transferred. Finally, when the employer transfers the salary via bank transfer, it will be topped up to the “PayPay Money Account（Paycheck）” as PayPay Balance（PayPay Money（Paycheck））.
The maximum balance limit for PayPay Money（Paycheck）that is topped up as salary is 200,000 yen. If any newly received salary exceeds this limit, the excess amount will be sent from PayPay to a prescribed financial institution account in the employee’s（user’s）name（Auto Sweep Account）free of charge. The maximum balance limit for PayPay Money for users of “PayPay Paycheck” is 800,000 yen（with a combined limit of 1,000,000 yen for PayPay Money and PayPay Money（Paycheck））.
PayPay Money（Paycheck）topped up as salary can, immediately after it is received, be sent to a financial institution account in the user’s name（bank transfer）. If the financial institution is PayPay Bank, the transfer can be made free of charge. For other financial institutions, the transfer fee is 100 yen（tax included）.
However, the first transaction in each month that includes PayPay Money（Paycheck）can be made for free, regardless of the financial institution.
< Fee for transfers from a PayPay account to a financial institution account >
■ For users of “PayPay Paycheck”
| Timing of transfer | Financial institution in user’s name | Transfer fee No transfer fee for the 1st | transaction each month |
|---|---|---|---|
| Auto-sweep when exceeding the balance limit | All financial institutions | Not required | Not applicable |
| Each time | PayPay Bank | Not required | The first transaction each month that includes PayPay Money（Paycheck）is free of charge（＊）. |
| Other financial institutions | 100 yen | ||
| Standing instructions | PayPay Bank | Not required | |
| Other financial institutions | 100 yen |
（＊）For example, if the first transfer of the month is made to PayPay Bank, or if the “Standing Instructions” feature is used to make a monthly transfer to a PayPay Bank account, the next transfer to an account at a financial institution other than PayPay Bank will incur a 100 yen transfer fee. This is because the transfer to PayPay Bank is counted as the first transaction of the month, even if it is the first time a transfer is made to the financial institution’s account.
Auto-sweeps when exceeding the balance limit are always free of charge.
■ （Reference） For users who do not use “PayPay Paycheck”
| Timing of transfer | Financial institution in user’s name | Transfer fee |
|---|---|---|
| Each time | PayPay Bank | Not required |
| Other financial institutions | 100 yen |
In the unlikely event that PayPay goes bankrupt, the amount equivalent to that recorded in the Salary Account and the balance recorded in the PayPay Money Account（Paycheck）（including any portion undergoing foreign exchange processing as part of a cashout transaction, etc.）will be promptly reimbursed to users by a third-party guarantee agency designated by PayPay, based on the Ordinance for Enforcement of the Labor Standards Act.
A “Standing Instructions” feature will be provided to users of “PayPay Paycheck,” which enables a scheduled monthly transfer to a third person’s PayPay account or a financial institution account in the user’s name（free of charge for transfers to other PayPay accounts; transfer fees will be incurred for transfers to financial institution accounts as per the above table）. This feature will be available starting from August 14, at the same time as the launch of “PayPay Paycheck” for employees of SoftBank group companies.
For details on “PayPay Paycheck” for employees（users）and the “Standing Instructions” feature, please refer to the dedicated page that will be published today.
[ How employers（businesses）can pay salaries to employees’（users’）PayPay accounts ]
Employers（businesses）can pay salaries to employees’ PayPay accounts via bank transfer as they traditionally do. There is no need to develop an additional payment system or newly conclude a service contract with PayPay. Employers can transfer salaries to the “Account Number for Payment to the Salary Account（Bank Account Number）” which PayPay assigns to an employee’s PayPay account. Once the salary is topped up to the “Salary Account,” the salary payment is complete. The receipt of transfers to the “Account Number for Payment to the Salary Account” and the deposit to the user’s “Salary Account” are processed in real-time within PayPay.
To support digital salary payments, employers need to conclude a labor-management agreement. Additionally, they must explain the service to employees and obtain individual consent.
For details on how employers can support “PayPay Paycheck,” please refer to the dedicated page that will be published today.
For more information on digital salary payments, please refer to the Ministry of Health, Labor and Welfare’s website.
（Reference）
Ministry of Health, Labor and Welfare: Salary Payments to Accounts of Funds Transfer Operators（Digital Payment of Wages）
https://www.mhlw.go.jp/stf/seisakunitsuite/bunya/koyou_roudou/roudoukijun/zigyonushi/shienjigyou/03_00028.html
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）
・Designated Funds Transfer Operator, permitted to provide digital payment of wages （Designation No.: Minister of Health, Labor and Welfare No. 00001／Date of designation: August 9, 2024）
・・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 Funds 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.
