PayPay Corporation (hereinafter PayPay) is pleased to announce the full-scale rollout of Item Specific Coupons, a service that offers deals for specific products, as a part of its efforts to expand its business.
Item Specific Coupons is a sales promotion service that enables manufacturers to issue coupons within the PayPay app on a per-product basis, according to their needs. In addition, for products that require age verification upon purchase (such as alcoholic beverages or certain condiments), it is possible to use this information to issue coupons only to eligible buyers by utilizing PayPay’s eKYC information. This allows manufacturers to raise awareness of their products including those that are new or seasonal and drive promotions across PayPay’s 66 million users*1. Merchants offering Item Specific Coupons can also expect increased customer traffic and growth of sales in their stores. Past promotions have seen increased purchase volume and repeat purchases of Item Specific Coupon-eligible products, alongside an increase in customers visiting applicable stores and a higher average spend per payment as a result of customers purchasing other products at the same time.
Based on these outcomes, PayPay will expand the range of eligible products as well as range of merchants offering Item Specific Coupons in and after November 2024. As the first step of this initiative, Sugi Pharmacy Group has issued 85 coupons covering products from 56 manufacturers, valid until Sunday, November 24, 2024.
Traditional sales promotion strategies by manufacturers have faced challenges such as the difficulty of identifying actual purchasers, which affects cost-effectiveness and performance analysis. Item Specific Coupons stand out for their efficiency in campaign costs due to being acquired in advance and by offering visibility into who is purchasing the products. Additionally, the integration of real-time purchase data with the merchants’ PoS systems*2 eliminates the manual data collection and aggregation tasks required in traditional operations. It allows for instant granting of PayPay Points to users and enables the analysis of purchase volumes and repeat purchase rates as a result of coupon offerings, thus providing new value to manufacturers and merchants.
Item Specific Coupons work in a similar way to existing PayPay Coupons; the user claims the coupon in advance via the PayPay app which is automatically applied to the purchase of the specified product at the applicable merchant, whereby PayPay Points are granted.
*1. The number of registered PayPay users as of October 2024.
*2. Development of PoS (Point of Sales) systems at the target merchant is required to link purchase information with PoS systems. Additionally, if the integration with PayPay is via a payment gateway company, development will also be required by the gateway. As of November 6, 2024, InComm Japan K.K. supports this integration, while Canal Payment Service Ltd. and Netstars Co., Ltd. are next in line.
◼︎ How to claim and check Item Specific Coupons
Simply select “Coupons” from the home screen of the PayPay app and tap the “Claim” button displayed to obtain a coupon.
Claimed Item Specific Coupons and PayPay Points obtained using the coupon can be confirmed by switching to the “My Coupons” tab at the top of the PayPay Coupons screen.
■ Future expansion of Item Specific Coupons
Moving forward, Item Specific Coupons are planned to be offered from the following merchants and manufacturers.
Participating merchants:
– Sugi Pharmacy Co., Ltd., Sundrug Co., Ltd., OK Corporation
Participating manufacturers (examples):
– Asahi Soft Drinks Co., Ltd. LTD[KN1] ., Kirin Holdings Company, Limited, SIROK Inc., Daio Paper Corporation, Fumakilla Limited, Lotte Co., Ltd., etc.
To date, PayPay has indirectly supported the growth of merchants’ sales through efforts aimed at customer acquisition and retention efforts, though services such as PayPay Coupons and PayPay Stamp Cards services. Additionally, PayPay launched the PayPay Funding service, which allows businesses to receive up to 1 million yen of future sales via PayPay. PayPay will continue to accelerate initiatives to improve and expand services that support both the increase of merchants’ sales and manufacturers’ business growth, with Item Specific Coupons serving as a stepping stone.
■ 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 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 (Salary) refers to PayPay Money that can only be purchased with wages received by PayPay users in their payroll 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. 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.
