Press Release

PayPay Corporation (Head Office: Minato-ku, Tokyo; President & Representative Director, CEO, Corporate Officer: Ichiro Nakayama; hereinafter PayPay), designated by 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 salaries) (hereinafter, digital salary payment), is pleased to announce that “PayPay Paycheck, ” a service that that meets the designation requirements based on the Ordinance for Enforcement of the Labor Standards Act, is now available to all PayPay users(*1), including those employed outside the SoftBank Group companies.
Employees (users) who wish to receive digital salary payment must confirm that their employer (business) has executed the necessary labor-management agreement for digital salary payments, obtain consent of their employer, and apply for “PayPay Paycheck” from the service icon on the PayPay app home screen.

PayPay has received designation 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 salaries) on August 9, 2024. The “PayPay Paycheck” service become available to employees of SoftBank Group companies starting August 14, and each group company have successfully completed payroll payments on September 25 and October 25 to PayPay accounts of employees who signed up for the service.

*1 “PayPay Paycheck” is available to users who have completed identity verification.

17 SoftBank Group companies that support digital salary payment and “PayPay Paycheck”, including Fukuoka SoftBank Hawks Corp. and SB Creative Corp., were added today to the existing 10 companies, allowing the employees of 27 companies to receive their salaries through their PayPay account.

To support digital salary payments, employers (businesses) need to execute a labor-management agreement with their workers. Additionally, they must explain the service to employees and obtain individual consent.
Employers can pay salaries to employees’ PayPay accounts via bank transfer, as they traditionally do, without the need to newly conclude a service contract with PayPay. After transferring salaries to the “Account Number for Payment to the Salary Account (Bank Account Number),” which is assigned to each employee who signs up for “PayPay Paycheck,” a pre-determined amount will be topped up to the employee’s PayPay account within the PayPay’s system.

Bank transfer fees will be waived(*2) if the employer (business) uses a PayPay Bank corporate account to transfer salary to the employee’s (user’s) “Account Number for Payment to the Salary Account (Bank Account Number).”

*2 Incurred transfer fees will be paid back to the PayPay Bank corporate account in the following month.

Reference: PayPay Bank Offers Transfer Fee Waiver Program for “PayPay Paycheck”
https://www.paypay-bank.co.jp/company/press/2024/0821

Dedicated website for employees (users) regarding “PayPay Paycheck”
https://paypay.ne.jp/guide/paycheck-employee/
Dedicated website for employers (businesses) regarding “PayPay Paycheck”
https://paypay.ne.jp/guide/paycheck-employer/

“PayPay Paycheck” website for employers (businesses) now includes use cases by OBIC BUSINESS CONSULTANTS CO., LTD, Sakai Moving Service Co., Ltd., and NIPPON GAS CO., LTD. who will offer PayPay Paycheck to their employees starting today.
Employers (businesses) can use these examples as a reference when implementing “PayPay Paycheck.”
https://paypay.ne.jp/guide/paycheck-employer/#case

PayPay also provides a “PayPay Paycheck Support Banner,” so that employers that offer digital salary payment and “PayPay Paycheck” can include it on the company’s recruitment page and external publicity materials. The banner can be downloaded from the following website:
https://paypay.ne.jp/guide/paycheck-employer/#banner

We hope that supporting digital salary payment will help to improve corporate image(*3) and recruiting activities for companies that decide to take on this initiative, as approximately 40% of workers have expressed their intention to use it(*4).

*3 Survey by Gakujyo Corporation (conducted in May 2023)
*4 “Report on Survey on Cashless Payment using QR Code, etc.,” Japan Fair Trade Commission, 2020.

■ HR, labor, and payroll management services also available to assist employers (businesses) to start paying wages digitally

The following nine HR, labor, and payroll management services are scheduled to support applications from employees (users) who wish to have their salaries paid digitally by the end of FY2024. Employers (businesses) who are looking to offer “PayPay Paycheck” can enjoy a smoother start with help of these services.

First name of the company providing the service (in alphabetical order)

* For details on services provided by each company, please refer to their websites.

PayPay believes that digital salary payments will not only provide employees (users) with more options and flexibility in how they receive their salaries, but also enhance convenience by eliminating the need for users to top-up their PayPay balance each time they receive a paycheck.
PayPay has expanded the number of financial services on the PayPay app by offering smooth user experience, such as the “PayPay Asset Management” and “PayPay Insurance” mini-apps(*5). Starting with receiving salaries digitally, PayPay will continue to add and improve services for employees (users) to offer a more comprehensive asset management experience.
As employers (businesses) are also expected to contribute to creation of more diverse work styles, such as allowing secondary jobs,“PayPay Paycheck” will have a positive impact on human resources, payroll management, and recruitment activities.
In turn, “PayPay Paycheck” is expected to contribute to the further promotion of the cashless payment initiative driven by the Japanese government.

*5 Features that allow smooth user experience for making reservations, ordering products, and making payments for services provided by PayPay’s partners through the PayPay app.

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

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 Balance (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)
・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 Fund Transfer Operator registered under Article 37 of the Payment Services Act. PayPay Money (Paycheck) refers to PayPay Money that can only be purchased with wages received by the PayPay user in their Paycheck Account. 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.