- New smartphone-based payment service will be named PayPay
- It will be a joint venture between SoftBank and Yahoo Japan
- PayPay is planned to launch in fall 2018
SoftBank has announced that it will leverage the technology of India-based digital payments company Paytm in a new mobile payments service it is launching. The new smartphone-based payment service, named PayPay, will be a joint venture between SoftBank and Yahoo Japan. It will be centred around QR codes and is planned to launch in fall 2018. PayPay will allow users to make payments using credit cards as well as electronic money. SoftBank Vision Fund is a major investor in Paytm, which leads the digital payments market in India.
In a press release, SoftBank said it aims to “promote the broader use of cashless payment” with PayPay and will “provide highly convenient services to both consumers and affiliated stores.” Cash is still the preferred mode of payments in Japan, but the government is said to be making efforts to make 40 percent of the payments cashless by 2025.
SoftBank said in its statement, “PayPay Corporation, SoftBank, Yahoo Japan and Paytm will expand the number of users by including the customer base of SoftBank, and Yahoo Wallet, which comprises approximately 40 million accounts. They will also deploy the platform using SoftBank’s sales know-how, and develop a tailored service offering leveraging Paytm’s technology. Their aim is for PayPay to become the top provider of smartphone payment services in terms of the number of users as well as affiliated stores.”
The PayPay app launch will see the Yahoo Wallet’s smartphone settlement feature will be terminated, though the termination date has not yet been decided. The new payments service will be integrated with the Yahoo Japan ID, and the Yahoo Japan app will have PayPay integration as well. SoftBank aims to roll out the service to a wide range of stores across the country, including large chains to individual merchants.