One97 Communications-backed Paytm announced that PayPay Corporation, its joint venture between SoftBank Corp and Yahoo Japan Corporation, has launched PayPay, a smartphone-based settlement service in Japan.
Just like in India, where Paytm initially relied heavily on cashbacks to gain a large user base, PayPay, has announced that it would 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 would not charge any fee for “user scan” type settlement for three years till the end of September 2021.
Paytm is on a major global expansion drive. After launching its wallet in Japan, sources said Paytm is planning to make an entry into Europe. However, things are at a nascent stage and plans of entering Europe might not kick off before next year.
PayPay Corporation, 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.