SoftBank Puts 10 Billion Yen Behind PayPay’s Japanese Mobile Payments Launch

November 27, 2024         By: Steven Anderson

On December 4, Japanese mobile payments users will be able to start putting a whole new breed of mobile payment system to work, specifically, PayPay. The Yahoo Japan-backed system is set to go live, and it’s even got a little extra support from SoftBank. Okay, not really a “little” extra, as SoftBank’s putting up a hefty 10 billion yen—about $88.7 million US as of this writing—behind the PayPay launch in the form of cashback bonuses.

Dubbed the 10 Billion Yen Giveaway Campaign, it runs from December 4 clear through to March 31, and will offer shoppers up to 50,000 yen—about $443 US—per month. Essentially, 20 percent of the amount spent at any particular time, as long as it’s spent through PayPay, will be returned to the customer as PayPay Bonus. In some cases, there’s even more than that potentially afoot, with a campaign where “the full payment amount is given as PayPay Bonus with a chance 40 times ratio.”

There’s even a campaign, according to reports, where those who put in 5,000 yen or more on their PayPay Balance get a one-time bonus of 1,000 yen. Shoppers will immediately be able to put the system to work at one of Japan’s 17,000 FamilyMart stores, and more will likely follow from there.

Since FamilyMart is actually the second largest convenience store chain in Japan, reports note, that covers quite a bit of waterfront. It offers basic grocery items, as well as hot snacks, so it’s not like there will be much of a shortage to buy. The good news here is that we’re talking comparatively small amounts; 5,000 yen, for example, is about $44 US, so the idea of dropping $44 at a convenience store over the space of three months isn’t exactly out of line.

The impact of this plan is a bit limited, especially given that right now there’s not many places to use PayPay at last report. However, the faster new stores can be added, the better off the whole plan will be. Getting more users into the fold is going to require not only the breaking of inertia but also the demonstration of a way that’s better than what’s currently used.