PayPay, a joint venture established by SoftBank and Yahoo Japan announced that the company will launch “PayPay” smartphone payment services using barcodes (QR code) in fall 2018.
PayPay will team up with India's largest digital payment company Paytm, a SoftBank Vision Fund portfolio company, to utilize Paytm's technology and expertise in mobile payments.
In Japan, cash (bank notes and coins) is still the mainstream payment methodology, with the current cashless payment ratio remaining at 20%. Consequently, the Japanese government is taking measures to raise the cashless payment ratio to 40% by 2025, with a long-term goal of 80%, the highest level globally.
To aid these efforts, SoftBank and Yahoo Japan established PayPay in June 2018 and will launch its user-oriented payments platform in the fall 2018. This will promote the broader use of cashless payment in Japan and provide highly convenient services to both consumers and affiliated stores.
Paytm leads the digital payments ecosystem in India and has pioneered the use of Barcode (QR)-based technology, offering seamless mobile payments to over 300 million customers and 8 million merchants.
PayPay, SoftBank, Yahoo Japan and Paytm will expand the number of users by including the customer base of SoftBank, and “Yahoo! Wallet” which comprises approximately 40 million accounts. They will also deploy the platform using SoftBank's sales know-how, and develop a tailored service offering leveraging Paytm's technology.