PayPay Corporation (hereinafter PayPay) is pleased to announce that, with the aim of further enhancing the corporate value of PayPay Securities Corporation (hereinafter PayPay Securities), it will acquire shares in PayPay Securities from SoftBank Corp. and LY Corporation, as well as subscribe to a third-party allocation of shares conducted by PayPay Securities.
By becoming the parent company of PayPay Securities, PayPay aims to strengthen integrations among its diverse services thereby enhancing user convenience and customer satisfaction of services offered by PayPay Securities. In addition, SoftBank Corp. and LY Corporation, as parents of PayPay, will strive to strengthen financial businesses across the group to further increase their corporate value.
It should be noted that Mizuho Securities Co., Ltd. (hereinafter Mizuho Securities), a collaborative partner in PayPay Securities’ business, has also agreed to this initiative and will continue to cooperate towards enhancing the corporate value of PayPay Securities.
1. Background and Purpose
PayPay has focused on expanding features and services for users and merchants, leading the general shift towards cashless transactions in Japan. From its service inception approximately six years ago, PayPay has attracted 67 million users who have registered to use the service,* and reached a consolidated gross merchandise volume of 12.5 trillion yen for the fiscal year 2023. In October 2022, PayPay acquired PayPay Card Corporation as its wholly owned subsidiary to unify service experiences between the PayPay app and credit card services as demonstrated through PayPay Credit, significantly increasing the number of valid cards in distribution as well as transaction volume.
PayPay also made an investment in PayPay Securities in April 2023, resulting in a profound increase in the number of brokerage accounts, including NISA accounts, opened with PayPay Securities, by providing users access to services such as PayPay Invest, Earn Points, and Invest Easy within the PayPay app.
*Number of users who have registered an account, as of the end of December 2024.
PayPay Securities started its services as Japan’s first smartphone-based securities company in June 2016, with the vision of providing an environment in which anyone can casually and easily invest and make asset management feel more accessible. In February 2021, the company changed its name to PayPay Securities to align with the PayPay brand, aiming to evolve into a highly convenient service closely integrated with daily life through its partnership with PayPay.
In addition to providing the PayPay Securities app where users can purchase shares of well-known Japanese and American companies, mutual funds, and ETFs starting from just 1,000 yen, the company took further steps to lower the barrier of entry to investing by launching Earn Points in April 2020, enabling users to experience simulated investments using PayPay Points (this service was transferred to PPSC Investment Service Corporation, a wholly-owned subsidiary of PayPay Securities, in July 2022), before launching PayPay Invest in August 2022, enabling users to trade securities from within the PayPay app. NISA account transactions are also supported as of January 2024.
For the latest situation on PayPay Securities, please refer to this news release by the company:
New Release by PayPay Securities (January 29, 2025)
[Your First Step into Asset Management Should Be with PayPay Securities] 1.3 Million Accounts Opened with PayPay Securities as of December 2024!
— NISA Accounts Increasing Steadily Too, Surpassing 370,000
https://www.paypay-sec.co.jp/news/20250129_1.html
PayPay has already been strengthening its ties with PayPay Securities, and through the recent acquisition of shares and subscription to a third-party allocation, PayPay Securities will become a consolidated subsidiary of PayPay. The aim of this decision is to make PayPay Securities’ services more convenient and user-friendly, and to further expand financial businesses across the wider PayPay group.
Both PayPay and PayPay Securities will strive to provide even more easy-to-use services by developing PayPay into a comprehensive financial services app. This involves strengthening integration not only with PayPay’s services but also with PayPay Card Corporation, another PayPay subsidiary, in addition to maintaining the longstanding partnership with Mizuho Securities.
2. Shareholders and shareholding ratios before and after the acquisition of shares and subscription to a third-party allocation by PayPay
| Shareholder | Before | After |
|---|---|---|
| PayPay Corporation | 35.0% | 75.2% |
| SoftBank Corp. | 30.6% | 0.0% |
| Mizuho Securities Co., Ltd. | 34.0% | 24.8% |
| LY Corporation | 0.4% | 0.0% |
*Following PayPay’s acquisition of shares and subscription to a third-party allocation, PayPay Securities will remain a consolidated subsidiary of SoftBank Corp. and will also become a consolidated subsidiary of LY Corporation (indirectly holding shares of PayPay Securities through PayPay, a consolidated subsidiary of LY Corporation).
3. Schedule
Date of contract: February 10, 2025
Date of share transfer: April 1, 2025
Date of payment for third-party allocation: April 1, 2025
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)
・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. Note that PayPay Points (Time Limited) can only be used for payments with certain services provided by LY Corporation and its group companies. It cannot be transferred between PayPay users or withdrawn. Additionally, PayPay Points (Time Limited) have an expiry date. For the exact date of expiry, please confirm the information provided by LY Corporation or group company regarding the promotional campaign or measure. 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.
