Expansion of the Smartphone Payment Business through PayPay

「Revenue from the Finance business increased by ¥37.1 billion, or 24.3%, year on year to ¥189.7 billion. This was mainly due to higher transaction volumes for QR code payments and credit card payments offered by PayPay and PayPay Card. As a result, segment profit increased by ¥20.7 billion, or 116.2%, year on year to ¥38.5 billion.」

「As transaction volumes for QR code payments and credit card payments offered by PayPay and PayPay Card increased, the Finance business segment returned to profitability during the fiscal year. As a result, segment profit increased by ¥38.2 billion year on year to ¥33.2 billion, returning the segment to profitability.」

「As PayPay and PayPay Card grew, the Finance business segment returned to profitability from the first quarter of the fiscal year ending March 2025. As a result, segment profit increased by ¥15.6 billion year on year to ¥13.6 billion, returning the segment to profitability.」

「Revenue from the Finance business increased by ¥71.7 billion, or 190.1%, year on year to ¥109.5 billion. This was mainly due to PayPay becoming a subsidiary in October 2022.」

「Revenue from the Finance business increased by ¥34.1 billion, or 184.8%, year on year to ¥52.6 billion. This was mainly due to PayPay becoming a subsidiary in October 2022.」

「The number of registered users of PayPay operated by PayPay㈱ exceeded 55 million in the short period of 4 years and 4 months after the service launched in October 2018, reaching 56.64 million at the end of March 2023. During the fiscal year, PayPay payments exceeded 5.14 billion, approximately 1.4 times the previous fiscal year, and payment transaction value reached ¥7.9 trillion, approximately 1.5 times the previous fiscal year, with both increasing steadily. On a consolidated basis including PayPay Card㈱, payment transaction value was ¥10.2 trillion, approximately 1.3 times the previous fiscal year.」

「PayPay㈱ registered users (Note 2) exceeded 50 million in the short period of 3 years and 10 months after the service launched in October 2018, reaching 54 million at the end of December 2022. During the first nine months of the current consolidated fiscal year, payments (Note 3) exceeded 3.75 billion, approximately 1.4 times the year-earlier level, and payment transaction value (Note 3) reached ¥5.7 trillion, approximately 1.5 times the year-earlier level, with both increasing steadily. Along with the steady expansion of payment transaction value and the introduction of payment-system usage fees for merchants with annual sales of ¥1 billion or less, PayPay㈱'s revenue for the first nine months of the current consolidated fiscal year increased substantially to ¥89.8 billion (Note 4), approximately 2.3 times the year-earlier level.」

「PayPay registered users exceeded 50 million in the short period of 3 years and 10 months after the service launched in October 2018, reaching 51.21 million at the end of September 2022. During the first six months of the current consolidated fiscal year, payments exceeded 2.38 billion, approximately 1.4 times the year-earlier level, and payment transaction value reached ¥3.5 trillion, approximately 1.4 times the year-earlier level, with both increasing steadily.」

「In particular, the cashless payment service PayPay has achieved rapid growth as social infrastructure, reaching 48.65 million cumulative registered users and a 67% share of Japan's code-payment market in 3 years and 9 months since its launch (Note 1). To maximize the enterprise value of our group, we concluded that jointly managing Bホールディングス, the intermediate holding company that will be PayPay's parent company, with Zホールディングス would be most appropriate for the following reasons, and decided to execute the Transaction.」

「Cumulative PayPay registered users reached 46.79 million at the end of March 2022, partly reflecting the effect of campaigns such as the Super PayPay Festival, and the number of merchants exceeded 3.66 million. During the fiscal year, payments exceeded 3.6 billion, approximately 1.8 times the previous fiscal year, and payment transaction value reached ¥5.4 trillion, approximately 1.7 times the previous fiscal year, with both increasing steadily.」

「Cumulative PayPay registered users reached 44.55 million at the end of December 2021, partly reflecting the effect of campaigns such as the Super PayPay Festival, and the number of merchants exceeded 3.55 million. During the first nine months of the current consolidated fiscal year, payments exceeded 2.63 billion, approximately 1.8 times the year-earlier level, and payment transaction value reached ¥3.9 trillion, approximately 1.7 times the year-earlier level, with both increasing steadily.」

「Cumulative PayPay registered users reached 42.30 million at the end of September 2021, partly reflecting the effect of campaigns such as the Summer PayPay Festival, and the number of merchants exceeded 3.44 million. During the first six months of the current consolidated fiscal year, payments exceeded 1.66 billion, approximately 1.8 times the year-earlier level, and payment transaction value reached ¥2.4 trillion, approximately 1.7 times the year-earlier level, with both increasing steadily.」

「Cumulative PayPay registered users reached 40.28 million at the end of June 2021, and the number of merchants exceeded 3.34 million. During the first quarter of the current consolidated fiscal year, payments exceeded 790 million, approximately 1.8 times the year-earlier level, and payment transaction value reached ¥1.2 trillion, approximately 1.7 times the year-earlier level, with both increasing steadily.」

「Cumulative PayPay registered users reached 38.03 million at the end of March 2021. The number of payments during the fiscal year exceeded 2 billion, approximately 2.5 times the previous fiscal year, and payment transaction value reached ¥3.2 trillion, approximately 2.6 times the previous fiscal year, with both increasing steadily.」

「Cumulative PayPay registered users reached approximately 35 million at the end of December 2020, while the number of PayPay payments in the third quarter consolidated accounting period reached approximately 500 million, 1.7 times the year-earlier level, and continued to increase steadily. From October 2020, we began providing an open API for PayPay mini-apps through PayPay for Developers, a tool for developers.」

「Cumulative PayPay registered users exceeded 32 million at the end of September 2020, while the number of PayPay payments in the second quarter consolidated accounting period reached approximately 490 million, five times the year-earlier level, and progressed steadily. Applications for the My Number Point Program, implemented by the Ministry of Internal Affairs and Communications from September 2020, began in July, and applications linked to PayPay exceeded 1 million on 5 September.」

「From May 2020, we began accepting applications from merchants for PayPay Pickup, a pre-order service that allows customers to complete orders in advance in the PayPay app and collect products at stores without waiting. From the same month, we began supporting online payments for delivery services such as Uber Eats and 出前館. PayPay bill payments also began supporting NHK subscription-fee bills in May and Tokyo metropolitan tax payment slips in June, as we worked to enable PayPay payments in every setting.」

「The number of registered users exceeded 27 million within 18 months of the service launch while the number of payments continued to grow steadily. Going forward, we aim to evolve PayPay, leveraging its nature as a smartphone app, beyond a single-function payment service into a super app that makes every aspect of life more convenient on smartphones.」

「With the aim of encouraging customers to use the service in their daily lives, the continued implementation of various campaigns proved successful, and the number of registered users exceeded 22 million within 15 months of the service launch while the number of payments continued to grow steadily. Going forward, we aim to evolve PayPay, leveraging its nature as a smartphone app, beyond a single-function payment service into a super app that makes every aspect of life more convenient on smartphones.」

「The continued implementation of various campaigns proved successful, and the number of registered users exceeded 14.7 million within one year of the service launch while the number of payments continued to grow steadily.」

「The second 10 billion yen campaign launched in February 2019 proved successful, and the number of registered users reached 8.44 million within 8 months of the service launch while the number of payments continued to grow steadily.」

「PayPay㈱, established jointly with ヤフー㈱, provides the PayPay smartphone payment service using barcodes and QR codes. From October 2018, it began integrating its service with Alipay, enabling more than 700 million active Alipay users in China to make payments at PayPay merchants. In the 10 billion yen giveaway campaign conducted from December of the same year, which returned part or all of users' PayPay payments to them, the maximum return amount of ¥10 billion was reached within 10 days of launch, substantially increasing awareness. From February 2019, it conducted the second 10 billion yen campaign as its second campaign.」

「PayPay㈱, established jointly with ヤフー㈱, provides the PayPay smartphone payment service using barcodes and QR codes. From 25 October 2018, it began integrating its service with Alipay (Note 6), enabling more than 700 million active Alipay users in China to make payments at PayPay merchants. In the 10 billion yen giveaway campaign conducted from December of the same year, which returned part or all of users' PayPay payments to them, the maximum return amount of ¥10 billion was reached within 10 days of launch, substantially increasing awareness.」