PayPay, has announced that it would be giving electronic money equivalent to 500 yen to each customer downloading the application.
In joint partnership with SoftBank and Yahoo Japan Corporation, Paytm has announced to start QR-based smartphone payment settlement service in Japan.
Paytm has formed a new company in joint venture named ‘PayPay’ corporation with the SoftBank and the Yahoo Japan and its first offering is the smartphone based settlement service that is allowing the users for storing money from the bank account in their ‘PayPay’ wallet and making payments with the same.
Paytm has also said that it has built around its QRtech which it has deployed in India for allowing the customers for making the payments in offline mode.
Paytm has been also offering the ‘cashback’ for its users of PayPay in Japan a concept that has backed Alibaba and SoftBank and has been pushing in India to win new customers and see more transactions. PayPay will give rewards or cash back in electronic money equivalent to ¥500 to each customer downloading the application and authenticating it with a valid Japanese mobile number.
Along with that, for the sellers and the establishments, ‘PayPay’ would not be charging any transactional charges or fees for its users scan type settlements till the end of 2021 September.
As per a report in Bloomberg, the all-new payment service will also hold artificial intelligence along with other financial services (lending amongst others, insurance). In addition, the report said that a specialized team of Paytm employees are already operating and training other emplyees in Tokyo to get the service running and setting up new operations.
On May 2018, SoftBank raised to $1.4 billion into parent company of Paytm, that is One97 Communications Ltd. around 20 percent stake in the institution. This partnership will provide an accelerated push to Paytm in the home market of SoftBank.
Cashless payment from PayPay will be present on either the Yahoo! JAPAN app or the PayPay app. It will permit two types of payment methods which are electronic money and credit cards. The PayPay platform will be faultlessly combined with Yahoo! JAPAN ID, giving already present Yahoo! Wallet customers the choice to utilize PayPay functions within Yahoo! JAPAN’s smartphone application.
SoftBank said that over the period of time, customers would be able to utilize the services at a large range of outlets, from chain stores of nationwide to individual merchants present in every region.
Cash (coins bank and notes) is still the popular methodology of payment in Japan, with the available cashless payment ratio at 20 percent. Accordingly, the Japanese government is taking steps to increase the cashless payment ratio to 40 percent by 2025, with a long-term aim of 80 percent, the top-most level all around the world. SoftBank and Yahoo Japan formed PayPay Corporation in June 2018 to assist these efforts.
“PayPay was developed with teams from three different countries working together, it is a true testimony for us and our industry-leading solutions that can be easily ported to suit the needs of any country or market,” Madhur Deora, CFO, Paytm said.