Japan’s softbank and yahoo mobile payments joint venture company PayPay invest 10 billion subsidies

PayPay, which is jointly funded by Japan’s SoftBank and Yahoo, announced on the 22nd that it will invest 10 billion yen in large-scale publicity activities from December 4 to promote the use of the QR Code mobile payment service “PayPay”.

Kanagawa, Japan’s Yahoo president at PayPay parent company, said that “nearly 20 years ago, SoftBank and Yahoo allowed the network to spread rapidly in Japan, and to make the cashless payment universal, only we can do it”, thus peering into PayPay’s ambition.

About the content, as long as consumers to use PayPay to pay, pay 20% of the money is feedback to PayPay account.
The maximum monthly limit is 50,000 yen per person. There is also a percentage of the chance of winning a full return on the second consumption, with a maximum of 100,000 yen for the amount of feedback.

The 10 billion yen in subsidies by PayPay full burden, the deadline is the end of March 2019.
But when the feedback amount accumulated to 10 billion yen, activities will end in advance. But after the money end of the activity, can obtain much effect is not clear.

PayPay’s Sanyiro president said, “Now there’s only a focus on how to get more consumers to use PayPay, and things don’t think much after the event.”

PayPay is the mobile payment service launched in partnership with Indian Paytm, mentioned in a recent report, and Paytm will provide relevant technology
and mobile payment expertise.

Image source: LINE PAY.COM

SoftBank said cash, including banknotes and coins, remained the main form of payment used by the Japanese people, while the current cash-free payment rate was around 20% percent,the Japanese government wants to be able to raise the proportion of cashless payments to 40% by 2025 and hopes to reach 80% in the future, making it the world’s highest cash-free payment rate.

With the launch of PayPay, Yahoo Japan will terminate the “Yahoo Wallet” current smartphone billing function (the exact termination time has not been determined). The PayPay platform will be seamlessly integrated with Yahoo Japan’s accounts, that is, existing “Yahoo wallet” users can also use PayPay in Yahoo Japan’s app.

The appearance of PayPay will pose a threat to LINE Pay, which who also uses QR code payments.

SoftBank said that through the QR Code payment method, franchise stores will be able to use PayPay for free over the next 3 years, Line Pay also recently announced the start of a 3-year free use of franchise stores in August.