PayPay accounts for 1 in 5 cashless payments in Japan

PayPay Corporation announces that the number of "PayPay" payments in 2024 has exceeded 7.46 billion, accounting for approximately 1 in 5 of the total 38.8 billion cashless payments in Japan. The total number of QR code payments increased by 23% year-on-year to over 11.5 billion, with "PayPay" maintaining approximately two-thirds of the market share since 2020, growing to become Japan's No. 1 QR code payment service.

With the Ministry of Economy, Trade and Industry's target for Japan's cashless payment ratio set at 40% by 2025 and aiming for 80% in the future, the rate reached 39.3% in 2023 and 42.8% in 2024, achieving the 2025 target one year ahead of schedule. While credit cards, with their higher per-transaction amounts, account for a large share of the cashless payment value, in terms of transaction volume in 2024, QR code payments reached 11.5 billion compared to credit cards' 20.3 billion, exceeding half of credit card transactions. Since 2022, QR code payments have surpassed electronic money in both transaction volume and value, becoming the second most common cashless payment method after credit cards.

"PayPay," which accounts for approximately 20% of all cashless payment transactions, possesses significantly more payment data compared to other cashless services, and has begun utilizing this data for marketing initiatives and credit assessment for "PayPay Card." Payment data is also utilized for merchant financing, with AI determining the amount of funds that can be raised and the repayment rate based on payment data, providing a service that enables same-day financing. PayPay will continue to create new businesses utilizing payment data to provide more efficient and convenient services for users and merchants.

Since launching the PayPay application in October 2018, it has been used by over 68 million people, representing about two-thirds of smartphone users, with annual transactions reaching 7.46 billion in 2024. Throughout 2024, PayPay continuously expanded its merchant network, including online services, and broadened usage scenarios to include donations and shrine offerings, making "PayPay" available in an even wider range of locations. Additionally, "PayPay," which initially spread through small payments, can now handle transactions of up to 1 million yen per purchase, allowing it to be used for high-value payments such as travel bookings, airline reservations, and department store purchases. By creating an environment where "PayPay," which people use daily, can be used for everything from small to large payments, an increase is expected not only in the number of transactions but also in transaction value.

Going forward, PayPay will continue to provide the convenience of cashless payments to users as well as all restaurants and service providers, aiming to realize a world where cashless shopping is possible anywhere in Japan. Furthermore, PayPay aims to evolve from a "payment" app to a "super app" that makes users' lives richer and more convenient, fostering a world view of "PayPay anytime, anywhere." In November 2023, PayPay was designated as a "Specified Social Infrastructure Business Operator," an important infrastructure provider, by the Financial Services Agency. The company will continue to work to provide an increasingly safe and secure environment.

PayPay Licenses & Registrations

• Issuer of Prepaid Payment Instruments (Third-party Type) (Registration No.: Director-General of the Kanto Local Finance Bureau No. 00710 / Registration Date: October 5, 2018)
• Credit Card Number Handling Contractor (Registration No.: Kanto (Ku) No. 106 / Registration Date: July 1, 2019)
• Telecommunications Carrier (Notification No.: A-02-17943 / Notification Date: July 2, 2019)
• Funds Transfer Service Provider (Registration No.: Director-General of the Kanto Local Finance Bureau No. 00068 / Registration Date: September 25, 2019)
• Banking Agent (License No.: Director-General of the Kanto Local Finance Bureau (Bank Agent) No. 396 / License Date: November 26, 2020)
• Financial Instruments Intermediary (Registration No.: Director-General of the Kanto Local Finance Bureau (Financial Intermediary) No. 942 / Registration Date: June 25, 2021)
• Electronic Payment, etc. Agency Service Provider (Registration No.: Director-General of the Kanto Local Finance Bureau (Electronic Agent) No. 109 / Registration Date: February 14, 2023)
• Designated Funds Transfer Service Provider for Digital Salary Payments (Designation No.: Minister of Health, Labour and Welfare No. 00001 / Designation Date: August 9, 2024)
• Japan Payment Service Association (https://www.s-kessai.jp/ / Join Date: September 12, 2018)
• Japan Credit Association (https://www.j-credit.or.jp/ / Join Date: July 1, 2019)
• "PayPay" offers four types of electronic money services: PayPay Money, PayPay Money Lite, PayPay Points, and PayPay Gift Cards.

Types of Services

PayPay Money can be used for payments at affiliated services and merchants within the amount deposited into a PayPay account opened after completing PayPay's specified identity verification procedures. Users can also send and receive money between PayPay users without fees. Additionally, PayPay Money can be withdrawn and transferred to a designated bank account (transfer fees are free when designating PayPay Bank). The legal nature of this is an electronic record that can be used to pay for goods and services, and can be sent and withdrawn, issued by PayPay, a registered funds transfer service provider 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 through their salary receiving account. In accordance with Article 43 of the Payment Services Act, PayPay secures assets equal to or greater than the total amount of fund transfer obligations owed to users through deposits.

PayPay Money Lite is a type of electronic money issued by PayPay that can be purchased and used for payments at affiliated services and merchants, and can be transferred between PayPay users without fees. Its legal nature is a prepaid payment instrument (Article 3, Paragraph 1 of the Payment Services Act) issued by PayPay. In accordance with Article 14 of the Payment Services Act, to protect prepaid payment instrument holders, PayPay deposits with the Legal Affairs Bureau security deposits for issued prepaid payment instruments in an amount equal to or greater than half of the unused balance as of March 31 and September 30 each year.

PayPay Points, which are awarded free of charge through benefits and campaigns when using "PayPay," can also be used for payments at affiliated services and merchants similar to PayPay Money and PayPay Money Lite. However, PayPay Points (Limited Time) can only be used for payments at certain LINE Yahoo Group services. They cannot be transferred between PayPay users or withdrawn. PayPay Points (Limited Time) have an expiration date. Please check the specifications of LINE Yahoo Group initiatives and campaigns for the expiration period.

PayPay Gift Cards are a type of electronic money issued by PayPay that can be obtained and used for payments at the affiliated services and merchants specified by that PayPay Gift Card. However, they cannot be transferred between PayPay users or withdrawn. PayPay Gift Cards have an expiration date. Please check the specifications of the initiatives and campaigns issuing the PayPay Gift Card for the expiration period.

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