SoftBank teams with Paytm, Yahoo on mobile payments in Japan
The Japanese telco Softbank is partnering with Yahoo Wallet to launch a mobile payment app called “PayPay” this fall.
PayPay will be taking on other popular payment services in Japan like Apple Pay, Mobile Suica, and Line (an in-app messaging payment service). SoftBank and Yahoo!’s efforts are aimed at establishing PayPay as Japan’s top provider of mobile payment services in
PayPay will team up with India’s Paytm, leveraging their technology and experience with mobile payments. PayPay's use of QR codes comes from Paytm.
For affiliate stores, the first three years from the service’s launch will be free. SoftBank plans to expand affiliated stores around the country, including large chain stores and individualized merchants.
Cash payments still remain the dominant payment method in Japan, with cashless transactions at 20% out of all transactions.The Japanese government is reportedly taking action in raising the ratio to 40% by 2025, according to statistics from The Ministry of Economy, Trade, and Industry (METI) in 2018, cited in the press release.
SoftBank is aggressively promoting its technology for technological financial innovation. It recently brought its customer service robot Pepper to an HSBC branch in New York, and previously used the robot to accept payments at Pizza Hut locations in Asia. SoftBank is one of Japan’s biggest tech companies, providing mobile communication and robotics.