According to the kyodo news agency on March 5, Japan’s softbank and yahoo’s joint venture smartphone settlement service “PayPay” basic decision will officially start the remittance service.
The balance of the user after trading through PayPay will be withdrawn as cash, and the convenience will be enhanced.
LINE, which is one step ahead, has also started a mobile-phone-based remittance service. PayPay will follow suit, aiming to improve service quality and expand its user base.
Nowadays, cash is still the mainstream payment method in Japan, and the current cashless payment rate remains at 20%. The Japanese government plans to raise the cashless payment rate to 40% by 2025, In response to government calls to expand the use of mobile payments, Japanese companies have launched new services around mobile payments.
Mizuho Financial Group and Mercari, which operates the flea market app, announced its foray into mobile payments in February. NTT DoCoMo and LOTTE have also launched mobile payment-related services, and cross-border competition such as IT and communications and finance is intensifying.
PayPay is a feature-rich, smartphone-based settlement service that allows users to deposit money from a bank account in a PayPay wallet and use it to make payments.
PayPay is more like a prepaid card. It is free to join, there is no need to pay for PayPay, and there is no need to pay the minimum balance, users only need to input the phone number, password and password sent by SMS.
The mechanism adopted by PayPay is to conduct settlement through a special APP after recharging from a bank account. PayPay is now also able to send money to other users from its balance, but cannot redeem it. The payee can only use up the balance in the shop that has opened the PayPay service, which is not very convenient to use. This could be expanded as a faster and cheaper means of sending money than Banks, in addition to splitting the cost of meals.
PayPay, a joint venture between Softbank and yahoo, will be launched in October 2018 in partnership with Paytm, India’s largest FinTech settlement company.
PayPay, SoftBank, Yahoo Japan and Paytm will be made available through a customer base that includes SoftBank and Yahoo! “” the wallet contains about 40 million accounts. They will also use SoftBank’s sales expertise to deploy the platform and use Paytm’s technology to develop custom services. Their goal is to make PayPay the top provider of smartphone payment services, including subscriber Numbers and affiliated stores.
In order to obtain users, PAYPAY launched a large-scale activity of returning 20 billion yen (about 1.2 billion yuan) of points in the payment amount, and the number of users has increased to more than 4 million.