PayPay — a QR-based payment service launched by Paytm in Japan in partnership with SoftBank and Yahoo Japan in October 2018 has already garnered 8 million customers giving it a foothold in a huge potential market, according to The Financial Times’ recent interview with Paytm Founder and CEO Vijay Shekhar Sharma. “That number within six months is amazing,” he said.
PayPay “aims to promote the broader use of cashless payment in Japan and to provide highly convenient services to both consumers and affiliated stores,” Paytm had said in a blog last year during its launch.
PayPay will tie-up with South Korea’s digital wallet and payment app KakaoPay — subsidiary of mobile messaging app Kakao, as reported by Nikki Asian Review, to enable customers of KakaoPay to pay at PayPay stores and restaurants in Japan without signing up on the PayPay platform. KakaoPay app will be updated by October this year for users to scan PayPay’s QR code at outlets.
The move to tie-up with KakaoPay and a similar arrangement of Japanese chat app Line with mobile payment service Naver Pay — operated by South Korean parent firm Naver comes are done to attract more merchants on their platforms who are eyeing tourist inflow from South Korea and China ahead of the 2020 Tokyo Olympic Games in Japan, as per Nikki Asian Review, even as the government is encouraging digital payments in the country.
Comments from Paytm will be updated as and when received. KakaoPay and PayPay weren’t accessible.
Cash continues to remain the king in Japan with wireless transactions “including payments by credit cards and smartphone apps, accounting for just under 20 per cent of personal spending,” according to The Japan Times.
SoftBank had earlier said that the Japanese government is looking to raise the cashless payment ratio to 40 per cent by 2025, with a long-term goal of 80 per cent.
In order to boost digital transactions via PayPay, SoftBank had in November last year announced a ‘10 Billion Yen Giveaway Campaign between December 2018 and March 2019 for giving partial or full cashback on transactions done using PayPay.
Moreover, PayPay will not charge any fee for ‘user scan’ type settlement for three years till the end of September 2021 to sellers and establishments, Paytm had said last year.
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Source: Financial Express