PayPay – a joint venture established last month by SoftBank and Yahoo Japan – announced that it will team up with Indian digital payment company Paytm to launch QR-code payment services in Japan in the third quarter of 2018.
In Japan, cash is still the main payment method, with cashless payments currently accounting for just 20% of payments. The Japanese government is taking measures to raise the cashless payment ratio to 40% by 2025, with a long-term goal of 80%.
SoftBank says that PayPay’s user-oriented payments platform will promote the broader use of cashless payment in Japan and provide highly convenient services to both consumers and affiliated stores.
Paytm – which is part of SoftBank Vision Fund’s portfolio – will contribute its technology and expertise in QR code mobile payments to the platform. PayPay Corp, SoftBank, Yahoo Japan and Paytm aim to expand the number of users by including the customer base of SoftBank and Yahoo! Wallet, which comprises approximately 40 million accounts.
With the launch of PayPay, Yahoo Japan will terminate Yahoo! Wallet’s current smartphone settlement function, although the termination date has not been decided. The PayPay platform will be integrated with Yahoo! Japan ID, giving existing Yahoo! Wallet customers the option to use PayPay functions within Yahoo! Japan’s smartphone application.