Press Release

PayPay Bank Corporation (Head office: Shinjuku-ku, Tokyo; President & Representative Director: Tomohito Takusari; hereinafter PayPay Bank) is pleased to announce the initiation of the new “Deposit Revolution” program from December 2024. Customers depositing funds in both yen and US dollar savings accounts will enjoy a special interest rate of 2.0% annually (post-tax 1.59%)*1*2*3.
Additionally, PayPay Corporation (Head office: Minato-ku, Tokyo; President & Representative Director, CEO, Corporate Officer: Ichiro Nakayama; hereinafter PayPay) is pleased to announce that as of December 4, 2024, foreign currency deposits*4 are supported in the mini app PayPay Bank, available within the cashless payment service PayPay.

The interest rate under the regular program “Deposit Revolution” is approximately 20 times the standard savings rate of major banks*5 and stands at an annual rate of 2.0% (post-tax 1.59%)*1*3. Customers can apply to join the program via the PayPay Bank mini app or the PayPay Bank website.

*1. The interest rate is variable and subject to change depending on financial market conditions.
*2. The 2.0% annual rate (post-tax 1.59%) is an aggregate of the standard yen savings interest rate. A tax of 20.315% (National tax of 15.315% including the special income tax for reconstruction, and local tax of 5%) applies to earned interest.
*3. The special interest rate cap for yen savings is based on the monthly average balance of the US dollar savings account (converted to yen: using the end-of-day dollar/yen closing rate) (However, if the yen savings balance exceeds 5 million yen, the cap is set at 5 million yen.). There is no upper limit for US dollar savings.
*4. The currency available for use within the PayPay Bank mini app is limited to US dollars (savings account).
*5. Compared against the standard pre-tax savings interest rates of up to 0.1% offered by the three major banks (Mizuho Bank, MUFG Bank, and Sumitomo Mitsui Banking Corporation) for yen savings, excluding promotion rates (according to PayPay Bank research as of November 2024).

■ Features of the regular program “Deposit Revolution”

– Interest rate of 2.0% (post-tax 1.59%) on savings!

By making deposits in both yen and US dollar savings accounts, customers are offered an annual interest rate of 2.0% (post-tax 1.59%). For instance, depositing 500,000 yen and an equivalent amount in US dollars (totaling 1 million yen) will yield an interest of approximately 1,220 yen (post-tax) for December*6.

*6. This is an estimated value assuming deposits held between December 4 and 31, 2024, with a fixed exchange rate of 150 yen and no changes in balance due to exchange rate fluctuations. The amount of interest received may fluctuate based on market trends.

– Attractive rate on regular savings! Unlimited access to deposits

Unlike term deposits, where early withdrawals result in lower interest rates and often require the full amount to be withdrawn, PayPay Bank’s “Deposit Revolution” allows unlimited deposit and withdrawal of funds while offering favorable interest rates without a fixed deposit period*7.

*7. Excludes periods during which the PayPay Bank or foreign currency deposit systems are under maintenance.

【Overview of the regular program Deposit Revolution】

Example of when a deposit equivalent to 500,000 yen is made at the beginning of the month in both yen and US dollar savings accounts, assuming the exchange rate and balance calculated in yen does not change until the end of the month.

Example of the special interest rate cap being applied

■ Foreign currency deposits now available in the PayPay Bank mini app within PayPay

Within the PayPay Bank mini app (provided by PayPay Bank), users can now open a foreign currency deposit account, deposit and sell US dollars in the savings account, and check balances. Even customers who do not currently have an account with PayPay Bank can enjoy the special annual interest rate of 2.0% (post-tax 1.59%) offered through the regular program “Deposit Revolution” by opening a savings account via PayPay and deposit in yen and US dollars.

■ Access US dollar savings balance via “Wallet” in PayPay

Previously, only the balance of yen savings in a PayPay Bank account was viewable in the “Wallet” in the PayPay app, but as of December 4, 2024, users can now also view their total yen and dollar savings (converted to yen) balance. Additionally, the individual balances of yen and US dollar savings can be checked from the “PayPay Assets” screen, enabling users to easily c

PayPay Bank and PayPay are committed to supporting users’ asset building by providing further convenience through the Deposit Revolution and expanding PayPay’s “Wallet” features.

Note about this press release

This press release is solely intended to provide information. Foreign currency deposits are deposits denominated in foreign currencies (not covered by deposit insurance). Depending on foreign exchange rate fluctuations, the yen equivalent at the time of withdrawal may be lower than the yen equivalent at the time of deposit, posing a risk of principal loss. Additionally, foreign exchange fees will be borne at the time of deposit and withdrawal. The deposit rate (rate from yen to foreign currency) and the withdrawal rate (rate from foreign currency to yen) include exchange fees, typically making the deposit rate higher than the withdrawal rate. Thus, even if foreign exchange rates remain unchanged, there is a potential for principal loss with a lower yen equivalent at the time of withdrawal compared to the deposit. Please ensure to thoroughly read and understand the terms and product guide, and fully understand the mechanisms and risks before engaging in or continuing transactions at your own responsibility. For the latest interest rates, please check the “Interest Rates” section on the PayPay Bank website.

▽ Important information on foreign currency deposits:
https://www.paypay-bank.co.jp/fcd/attention.html

About PayPay Bank

Founded in 2000, PayPay Bank (formerly Japan Net Bank) was the first internet-only bank in Japan, now providing over 8.37 million accounts to its customers. After rebranding to PayPay Bank in April 2021, it has further strengthened its partnership with PayPay, launching the PayPay Bank mini app within the PayPay app in August 2022.
PayPay Bank’s mission is to “Make financial services as accessible as air,” and the company will continue to work toward the goal of providing financial services that are unseen yet indispensable, and that people happen to be using by the time they notice.
PayPay Bank will continue to offer products and services tailored to meet a diverse range of societal needs, enhancing daily convenience.

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.

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PayPay Bank Corporation

Registered financial institution,

Director-General of the Kanto Finance Bureau, No. 624

Member of the following financial instruments associations: Japan Securities Dealers Association and the Financial Futures Association of Japan

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