PayPay upgrades app with deferred payments - Mobile World Live

PayPay upgrades app with deferred payments

14 APR 2020

SoftBank-backed wallet app PayPay launched an overdraft facility for in-store payments to selected users, as it continues attempts to woo consumers in cash-reliant Japan to adopt mobile payment systems.

In a translated statement, PayPay said selected customers would be invited to apply for the deferred payments from tomorrow (15 April) with applications for the service available to its entire base later in the year.

Those accepted will be able to continue to make transactions without a positive PayPay balance once they have accepted a new terms and conditions document.

Any deficit can be settled the following month with an additional fee of JPY300 ($2.80) for use of the service. For a promotional period from launch to the end of July, the additional fee will be waived.

Payments can only be made instore and are not available for other items such as online payment and utility bill settlement.

Cash heavy
PayPay is a joint venture between SoftBank and Yahoo Japan, using technology from India-based wallet company Paytm. It launched in October 2018 and, as of its last formal trading update (20 February), had 25 million users.

On announcing its goal of being Japan’s market leader in smartphone payments ahead of launch, SoftBank estimated 80 per cent of payments in the country were processed using physical currency. By 2025, authorities aim to reduce this to 60 per cent, with a long term goal of cutting to 20 per cent.

PayPay is not the only company looking to push the move away from cash, with a number of other providers forming the Mobile Payments Alliance to help develop the ecosystem and promote usage.

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Chris Donkin

Chris joined the Mobile World Live team in November 2016 having previously worked at a number of UK media outlets including Trinity Mirror, The Press Association and UK telecoms publication Mobile News. After spending 10 years in journalism, he moved...

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