The shift away from photo-based identity verification using driver's licenses and toward IC-chip reading is accelerating, led by megabanks. Responses from 24 businesses, including PayPay, were compared and organized.
On 23 October 2026, Sumitomo Mitsui Banking Corporation announced that it would stop accepting images of identity documents for online account opening and other services and would shift to methods including JPKI. As a result, customers who cannot apply online are being directed to complete the procedure at a branch. On the same day, PayPay announced that it would discontinue photo-based eKYC by early November and standardize on the IC-chip reading method.
Mizuho Bank ended photo-based identity verification for remote account opening from 19 October and shifted to IC-chip reading, Jiji Press reported. Since May, MUFG Bank has required IC-chip reading in its smart account-opening app, while Resona Holdings and Mitsubishi UFJ Trust and Banking have also been reported to be considering bringing the change forward.
The move is driven by growing concerns about the risk of information leaks involving images of driver's licenses. The Financial Services Agency is calling for image submissions in remote transactions to be discontinued in principle from 1 April 2027 and replaced by IC-chip reading. The change concerns a review of the entire operational process for image-based identity verification, rather than the act of photographing the card itself.
As of December, the status of discontinuation and migration from the photo-based method is being compared and organized for 24 businesses and groups, comprising 23 banks and banking groups plus PayPay. Regional banks and securities companies are also bringing forward the change or operating both methods in parallel, and further developments are being watched.