PayPay Corporation is pleased to announce that the consolidated gross merchandise value (GMV) for FY2022 surpassed 10 trillion yen*1, reaching a record high. Since launching the cashless payment service "PayPay" in October 2018, PayPay has been a driving force in Japan going cashless, and the company's feat of topping 10 trillion yen in four and a half years is exceptionally fast compared to other domestic and international payment service providers.
*1. The GMV for FY2022 includes the GMV of PayPay Card Corporation, which became a wholly owned subsidiary of PayPay on October 1, 2022. The figure for FY2021 represents PayPay's standalone GMV, while the figure for FY2022 represents the consolidated GMV that includes PayPay Card's GMV from the beginning of the fiscal year. PayPay Pay Later, a service that allows PayPay Card and PayPay Card Gold users to pay the total amount spent on "PayPay" in a lump sum the following month, and Balance top-ups via both credit cards are included in the GMV of PayPay.
As the promotion of cashless payments has become a global trend in recent years, the public and private sectors in Japan have joined forces to promote cashless payment measures. The Ministry of Economy, Trade and Industry (METI) has announced that cashless payments in Japan in 2022 accounted for 36.0% of all payments, or 111 trillion yen, indicating a good trajectory towards the target of 40% in 2025. In 2021, the number of code payment (both QR code and barcode) transactions exceeded 4.8 billion, an increase of 180% from the previous year. This rate of growth stands out among the various cashless payment methods and services, indicating that code payments are becoming more ubiquitous in daily life.
*Prepared by PayPay based on data from the "Discussion by Study Group on the Future Direction of Cashless Payment Summarized" (Cashless Payment Promotion Office, Commerce and Service Industry Policy Group, METI).
As the use of code payments among cashless transactions becomes more prevalent, the number of "PayPay" users has also grown, exceeding 55 million*2, which means approximately 1 out of every 1.7 smartphone users*3 is using the PayPay app. At the same time, thanks to the broadened applications of the service, "PayPay" accounted for two-thirds of the domestic code payment GMV in 2022, making it again the leading code payment service in the nation*4 following from last year. In addition to various campaigns and the Myna Points Project contributing to increased use of "PayPay," the points program that grants 0.5% to 2.0%*5 of the paid amount as "PayPay Points" depending on the transaction amount has also been supported by many users due to the soaring prices. In April 2022, PayPay started offering PayPay Pay Later, a service that allows users to pay the amount spent on "PayPay" in a lump sum the following month by linking their "PayPay Card" to the service. This has doubled the average spend per transaction and increased the average amount spent by each user.
The company has also further enhanced its financial services by expanding the policy lineup of the PayPay Insurance mini app*6, which can be purchased via "PayPay," and by adding a new feature in "PayPay Invest" that allows users to purchase mutual funds and ETFs with PayPay Points. As the use of "PayPay" expands beyond shopping and dining, there will be an even greater increase in GMV once digital salary payments (digital payroll), which has been introduced in April 2023, becomes available through "PayPay."
As the government continues to promote cashlessness, both PayPay and PayPay Card will work together as a team to further expand their presence in the cashless market.
*2. Number of users who have registered an account as of February 2023.
*3. Calculated by PayPay based on "Population Projections - August 2021 Report" published by the Statics Bureau of Japan and "1. Information Communication Devices Ownership" in "2021 Telecommunications Usage Trends Survey" published by the Ministry of Internal Affairs and Communications.
*4. The share of "PayPay" was calculated by PayPay based on the publication by PAYMENTS JAPAN, "Stats - Code Payment."
*5. When paying with PayPay Balance, 0.5% of the payment amount will be granted as "PayPay Points," but the grant rate will increase to 1% or 1.5% when the conditions of PayPay Step are met or PayPay Atobarai is used for payments.
*6. A feature that allows usersｓ to easily make reservations, order products, and purchase services provided by PayPay Corporation's partner companies from the PayPay app.
PayPay will continue to offer the convenience of cashless payments to users as well as all kinds of retailers and service providers, with the goal of creating a world in which a safe cashless shopping experience can be enjoyed anywhere in Japan. “PayPay” will continue on the path to evolve from a “payment app” into a “super app” that will make users’ lives richer and more convenient, fostering a culture of “Anytime, Anywhere with PayPay.”
■ About “PayPay,” the cashless payment service provided by PayPay Corporation
PayPay is a cashless payment service expanding across the country, available not only at major chain stores but also at small and medium size retailers, vending machines, taxis, and even public transportation. It can also be used in a variety of other situations, including paying for online services and utility bills. PayPay is also expanding its range of services beyond just payments, including a "send/receive” feature (remittance/transfer and receiving of money) that allows users to transfer their PayPay Balance (PayPay Money and PayPay Money Lite) between each other for free, or “point management,” a service that allows users access to a simulated investment experience involving the exchange of PayPay Points with points provided by a service provider that PayPay is partnered with. The company also strives to create a safe and convenient environment for users through a hotline available 24/7 and a full compensation scheme ensuring, compensation for any damages that may be suffered.
PayPay is registered as follows:
・Prepaid Payment Instruments (third party type) Issuer, Registration #: Director-General of the Kanto Finance Bureau, No. 00710 (Registration date: October 5, 2018)
・Fund Transfer Operator, Registration #: Director-General of the Kanto Finance Bureau, No. 00068 (Registration date: September 25, 2019)
・Japan Payment Service Association (https://www.s-kessai.jp/, Date of admission: September 12, 2018)
・Business Operator that Concludes Contracts on the Handling of Credit Card Numbers, etc., Registration #: Kanto (K) No. 106 (Registration date: July 1, 2019)
・Japan Consumer Credit Association (https://www.j-credit.or.jp/, Date of admission: July 1, 2019)
・Telecommunications Carrier (Filing #: A-02-17943 / Date filed: July 2, 2019)
・Notified Person Entrusted with Intermediation (Filing #: C1907980 / Date filed: December 18, 2019)
・Bank Agency Operator, License: Director-General of the Kanto Finance Bureau, No. 396 (Registration date: November 26, 2020)
・Financial instruments intermediary service registration number: Kanto Finance Bureau Director (Kinchu) No. 942 (Registration date: June 25, 2021)
* "PayPay" provides 5 types of PayPay Balance: PayPay Money, PayPay Money Lite, PayPay Points, PayPay Bonus Lite, and PayPay Gift Voucher.
PayPay Money can be used to pay for partner services and merchants if it is within the amount deposited into the PayPay account opened after completing an identity verification process. It can also be used for sending and receiving money between PayPay users free of charge. PayPay Money can also be cashed out to a designated bank account (no withdrawal fee if using PayPay Bank). The legal nature of this is an electromagnetic record which can be used to pay for goods and other services, and can be remitted or cashed out, and is issued by PayPay who is a Fund Transfer Operator registered under Article 37 of the Payment Services Act. Based on the provisions of Article 43 of the Payment Services Act, PayPay protects the debt it owes to its users in by depositing assets equivalent to or more than the debt amount. PayPay Money Lite is an electronic money issued by PayPay, which can be purchased and used to pay for services and merchants. PayPay users can transfer and receive PayPay Money Lite free of charge. The legal nature of this is a prepaid payment instrument issued by PayPay (Article 3, Paragraph 1 of the Payment Services Act). Based on the provisions of Article 14 of the Payment Services Act, PayPay preserves the relevant assets for the purpose of protecting the owners of the prepaid payment instrument by providing a security deposit for issuance to the Legal Affairs Bureau in an amount that is half or more of the unused balance of prepaid instrument methods as of March 31 and September 30. In addition, PayPay Points and PayPay Bonus Lite, which are granted through campaigns and promotions when using PayPay, can be used for partner services and in transactions at merchants in addition to PayPay Money and PayPay Money Lite. However, PayPay Bonus and PayPay Bonus Lite cannot be sent or transferred between PayPay users or be cashed out. PayPay Bonus Lite has an expiration date, after which it will no longer be valid. PayPay Gift Voucher is a type of electronic money issued by PayPay, which can be used to make payments for affiliated services and merchants designated by the PayPay Gift Voucher. However, it cannot be transferred to other users or cashed out. PayPay Gift Vouchers are valid for six months after issuance, after which they will no longer be valid.
PayPay also strives to create a safe and secure environment for users. If an unexpected payment is made by a third party using a PayPay account, or if a request to settle a payment suddenly arrives from PayPay to a user that does not have a PayPay account, providing that certain conditions are met, the user can be compensated for the damages suffered (the difference will be provided as compensation if compensation is also provided by a third party). Please see applying for compensation for details.
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※【2023年4月24日 17:55修正】キャッシュレス決済回数のグラフについて、「年度」と表記していましたが、「年」の誤りでしたので記載を修正しました。
