With PayPay Launch, Paytm Marks A Formal Entry In Japan
One97 Communications-backed Paytm is looking to expand its business aggressively beyond India. To drive its international expansion, the online payment firm began its services in Canada last year. Canadian users pay for utilities such as phone, cable, internet, electricity and water bills through the Paytm app.
This year, the company has launched PayPay, a smartphone-based settlement service in Japan, in a joint venture with PayPay corporation, SoftBank Corp. and Yahoo Japan Corporation. In July, PayPay Corporation teamed up with Paytm to utilize its technology and expertise in mobile payments.
Streamlining Online Payments
PayPay, a feature-rich smartphone-based settlement service will allow users to store money from a bank account in their PayPay wallet and make payments with it. Incepted in October 2018, PayPay aims to promote the broader use of cashless payment in Japan and to provide highly convenient services to both consumers and affiliated stores. It is built around the QR-technology from “Paytm”, which leads the digital payments ecosystem and has pioneered the QR based technology, offering seamless mobile payments to over 350 million customers and over 9.5 million offline merchants. QR code payment is a contactless payment method which is performed by scanning a QR code from a. mobile app.
“We are happy that the PayPay Corporation is utilizing our QR-technology and prowess to enable cashless payments in Japan. 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,” ‘said Madhur Deora, CFO & SVP, Paytm adding that this venture will give substantial growth to their business as they provide personalized and seamless digital payments experience to their customers.
Push To Lure Users
With its launch, PayPay, has also announced an exciting proposition for its users and will be giving electronic money equivalent to 500 Yen to each customer downloading the application and authenticating it with a valid Japanese mobile number. In addition, for sellers and establishments, PayPay will not be charging any fee for "user scan" type settlement for three years till the end of September 2021.
Post the launch of PayPay, Yahoo Japan will terminate Yahoo! Wallet's current smartphone settlement function. The platform will be seamlessly integrated with Yahoo giving existing customers the option to use PayPay functions within Yahoo! JAPAN's smartphone application.
“Paytm is the leader in smart electronic payment services in India and has achieved great success. It is a great strength to introduce Paytm's high technology and solution to PayPay and I am confident that it will greatly contribute to the expansion of users in Japan,” said Ichiro Nakayama, President & Representative Director CEO, PayPay Corporation.