OBIC BUSINESS CONSULTANTS CO., LTD（President and Representative Director: Shigefumi Wada; Head Office: Shinjuku-ku, Tokyo; hereinafter OBC）, which develops and sells core business systems such as Kanjo Bugyo and Bugyo Cloud, and PayPay Corporation （President & Representative Director, CEO, Corporate Officer: Ichiro Nakayama; Head Office: Minato-ku, Tokyo; hereinafter PayPay）are pleased to announce that they have entered into a basic agreement on the integration of the feature for digital payment of wages（hereinafter digital salary payment）.
■ Background and purpose of the basic agreement
With the partial revision of the Ordinance for Enforcement of the Labor Standards Act, digital salary payment, a new method of salary payment through transfer to fund transfer accounts, was introduced in April 2023.
OBC, recognizing the increasing demand for digital salary payment among employees of companies using “Bugyo Cloud” amidst the growing popularity of cashless payments and diversification of remittance services, has been considering the development of a system that allows digital salary payment without burdening back-office personnel.
PayPay was designated by the Minister of Health, Labor and Welfare on August 9, 2024 as a fund transfer operator supporting wage payments to accounts provided by a funds transfer operator（digital salary payment）. The service “PayPay Paycheck” was launched on August 14 for employees（users）of SoftBank group companies, with plans to extend the service to all PayPay users（※1）within 2024.
（※1）PayPay Paycheck is available to users who have completed identity verification on the PayPay app.
Given this background, OBC, aiming to digitalize corporate back-office operations, and PayPay and to further promote cashless payments, have deliberated and entered into the basic agreement for the integration of the digital salary payment feature.
This collaboration aims to reduce the operational burden on the companies adding digital salary payment as a new method of salary payment while enhancing the convenience for back-office personnel and employees（users）utilizing PayPay Paycheck. Furthermore, OBC will continue to support companies from both operational and technological perspectives, alongside PayPay, which will promote digital salary payment through PayPay Paycheck.
■ How to receive salary with a PayPay account
First, employees（users）wishing to receive their salary through a PayPay account must confirm with their employer（business）whether the necessary labor-management agreement for digital salary payment has been concluded and receive an explanation on the necessary matters. Subsequently, they must individually submit an application containing their consent.
Next, by applying for PayPay Paycheck on the PayPay app, a “Salary Account” for receiving salary, a “PayPay Money Account（Paycheck）” for holding the received salary 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 in the PayPay account.
The employees（users）should next provide the account number for payment to the salary account to their employers（businesses）as the account to which their salary is transferred. Finally, when the employer（business）transfers the salary via bank transfer, it will be topped up to the PayPay Money Account（Paycheck）as PayPay Balance（PayPay Money（Paycheck）（※2）.
（※2）PayPay Money（Paycheck）is a new type of PayPay Money established for the digital salary payment service.
■ Contents of the basic agreement
By integrating the features of PayPay’s PayPay Paycheck with OBC’s “Bugyo Edge Labor Management Digitalization Cloud”（*3）, the basic agreement aims to provide a new user experience that involves reducing input errors and burdens associated with employees（users）entering bank account numbers to receive their salary as well as streamlining the process of collecting salary account information by back-office personnel of employers（businesses）.
（※3）The integration and provision of the features is scheduled for around spring 2025.
Furthermore, companies using “Kyuyo Bugyo Cloud” can seamlessly perform bank transfers to accounts, which are collected through Bugyo Edge Labor Management Digitalization Cloud, enabling salary payments to traditional financial institution accounts and to employees（users）utilizing PayPay Paycheck without increasing operational burden.
＜Sample for illustration purposes＞
■ Comments from representatives of both companies
＜OBIC BUSINESS CONSULTANTS CO., LTD.＞
We are very pleased to have concluded the basic agreement on the integration of our Bugyo Cloud features with the digital salary payment feature with PayPay, the largest QR code payment provider in Japan.
With the seamless integration of PayPay and Bugyo Cloud based on this agreement, we believe that we can enhance our corporate value and employee satisfaction by reducing the operational burden on companies adopting digital salary payment.
Going forward, OBC will contribute not only to supporting corporate DX through digital salary payment but also to promoting cashless payments as advocated by the government.
Shigefumi Wada, President and Representative Director, OBIC BUSINESS CONSULTANTS CO., LTD
＜PayPay Corporation＞
We are very pleased to begin discussions on providing a seamless experience for digital salary payment to companies using Bugyo Cloud.
We believe that the addition of digital salary payment to the financial services PayPay already offers, including credit card, banking, asset management, and insurance, will contribute to a comprehensive asset management for PayPay users.
Based on the basic agreement with OBC, we will be working on promoting the smooth introduction of digital salary payment at various companies in addition to continuing to further improve convenience for PayPay users.
Ichiro Nakayama, President & Representative Director, CEO, Corporate Officer, PayPay Corporation
■ Information on digital salary payment
▼ Click here for details on digital salary payment with Bugyo Cloud
https://pages.obc.co.jp/wf-4098-360hr-kyuyo-digitalpay-dl-entry.html
Download materials summarizing the system overview of digital salary payment, practical preparations by back-office personnel, and operations using Bugyo Cloud.
▼ Dedicated page for employers（businesses）wishing to support PayPay Paycheck
https://paypay.ne.jp/guide/paycheck-employer/
▼ Guidance for employees（users）wishing to use PayPay Paycheck
https://paypay.ne.jp/guide/paycheck-employee/
■ Service overview
About labor management service Bugyo Edge Labor Management Digitalization Cloud
This labor management service digitalizes all labor and general affairs procedures and interactions with employees from hiring to retirement. It enables paperless processing of forms previously handled on paper, such as address changes and account changes, as well as digitalizing procedures requiring application to government offices, such as hiring and marriage. It supports electronic applications to pension offices, Hello Work, and health insurance societies, completing social insurance applications and eliminating the need for mailing or traveling.
▼ Service details
https://www.obc.co.jp/bugyo-edge/labor
About payroll calculation system Kyuyo Bugyo Cloud
This cloud payroll calculation system digitalizes all payroll operations from payroll calculation to social insurance and year-end adjustments. It quickly and reliably reflects law amendments such as flat-rate tax reductions and digital payment of wages to support the DX of payroll operations. In addition, linkage with Bugyo Cloud Edge, which digitalizes attendance and labor management for employees, will dramatically improve overall company productivity by digitalizing the collecting of information necessary for payroll operations.
▼ Service details
https://www.obc.co.jp/bugyo-cloud/kyuyo
■ About cashless payment service PayPay
“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 scenes, 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 P2P payments of two types of balances（PayPay Money and PayPay Money Lite）for free, and “Earn Points,” a service that allows users access to a simulated investment experience by exchanging PayPay Points with investment points provided by PayPay’s partner. 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.
■ Overview of company
OBIC BUSINESS CONSULTANTS CO., LTD.
OBC develops and sells products that bring about changes in business styles tailored to customer needs, with a focus on “DX of business operations” as a key concept, primarily through Bugyo Cloud, Bugyo Cloud Edge, among other offerings. With over 720,000 customers in the Bugyo series, OBC promotes the transition of traditional systems to the cloud under the initiative “UP to Cloud,” supporting the efficiency and productivity of business operations. Moving forward, OBC aims to enhance its user experience, provide services that inspire, and continue to be a trusted company for its customers.
Company name: OBIC BUSINESS CONSULTANTS CO., LTD.
Representative: Shigefumi Wada, President and Representative Director
Business: As a developer and manufacturer of solutions for enterprise operations, OBC provides cloud services, etc., that contribute to customers’ operational efficiency（in accounting, personnel affairs, payroll, and other core operations and related peripheral operations）via partner enterprises.
Founded: December 1980
Capital: 10.519 billion yen
Head office: Sumitomo Fudosan Shinjuku Oak Tower, 6-8-1, Nishi-Shinjuku Shinjuku-ku, Tokyo
https://www.obc.co.jp/
PayPay Corporation
Company name: PayPay Corporation
Representative: Ichiro Nakayama, President & Representative Director, CEO, Corporate Officer
Business: Development and provision of mobile payment and other electronic payment services
Location: Tokyo Port City Takeshiba Office Tower, 1-7-1 Kaigan, Minato-ku, Tokyo
PayPay is registered as follows：
・Prepaid Payment Instruments（third party type）Issuer, Registration #: 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 #: Kanto（K）No. 106（Registration date: July 1, 2019）
・Telecommunications Carrier（Filing #: A-02-17943／Date filed: July 2, 2019）
・Fund Transfer Operator, Registration #: Director-General of the Kanto Finance Bureau, No. 00068（Registration date: September 25, 2019）
・Notified Person Entrusted with Intermediation（Filing #: C1907980／Date filed: December 18, 2019）
・Bank Agency Operator, License: Director-General of the Kanto Finance Bureau, No. 396（Registration date: November 26, 2020）
・Financial instruments intermediary service 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” provides 4 types of PayPay balance: 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 and transferred to a designated bank account（no transfer fee if using PayPay Bank）. The legal nature of this is an electromagnetic record which can be used to pay for goods and other services, and can be remitted or cashed out, issued by the Company who is a Fund Transfer Operator registered under Article 37 of the Payment Services Act. PayPay Money（Paycheck）is PayPay Money that can only be purchased with wages that PayPay users receive in their salary accounts. 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 related to the funds transfer balance. 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 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, and 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 a set expiration date. Please see the specifications of the measures and promotional campaigns through which the PayPay Vouchers are issued to confirm the deadlines.
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.
※ The company name, trade name, and product/service in this press release are registered trademarks or trademarks of their respective companies.
