Moneycontrol
Last Updated : Oct 22, 2018 06:47 PM IST | Source: Moneycontrol.com

Paytm launches PayPay, QR-based payment service in Japan

One97 Communications, which owns and operates mobile payments firm Paytm, on Monday said it has launched a QR based smartphone payment service in Japan called PayPay.

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One97 Communications, which owns and operates mobile payments firm Paytm, on Monday said it has launched a QR based smartphone payment service in Japan called PayPay.

The service, launched in collaboration with SoftBank Corp and Yahoo Japan Corporation, which will allow users to store money from a bank account in their PayPay wallet and make payments with it.

"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, chief financial officer and senior vice president, Paytm.

The announcement marks Paytm's entry into the Japanese market. Paytm's first international foray happened last year with the launch of its services in Canada. Users in Canada pay for utilities such as phone, cable, internet, electricity and water bills through the Paytm app.

PayPay aims to promote the use of cashless payment in Japan and provide services to consumers and affiliated stores. For the first three years, PayPay has said, it will not charge any fee from sellers for user scan type settlement to promote the usage.

The company will also be offering cashbacks to the tune of 500 yens to each customer downloading the application.

In a statement issued earlier this year, Softbank had said that cash still was the mainstream payment methodology in Japan with the cashless payment remaining at just 20 percent. It added that the Japanese government was taking measures to raise the cashless payment ratio to 40 percent by 2025, with a long-term goal of 80 percent.

Paytm, a market leader in payments in India, claims to have over 300 million customers and 8 million merchants so far.

The company which has Softbank on its board, last raised $300 million from Warren Buffett’s Berkshire Hathaway Inc in September.
First Published on Oct 22, 2018 12:01 pm
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