Segment composition ratio
- [Notes]
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- *1The components of revenue represent sales to external customers.
- *2Operating income of the Distribution segment for FY2023 is ¥26.2 billion.
- *3Operating loss of the Financial segment for FY2023 is ¥5.0 billion.
- *1
Business strategy
“PayPay” has more than 63 million registered users*1 and is one of the largest cashless payment services in Japan, accounting for approximately two-thirds*2 of the QR and barcode payment market of Japan in terms of total transaction volume and number of payments.
We aim to expand the Financial business of the Group by further growing “PayPay” through Group synergies and driving the growth of other financial services by leveraging the strengths of “PayPay” as a leading payment platform. In addition, SB Payment Service Corp., providing the payment processing services, will actively take in opportunities in areas other than telecommunication payment settlements of the Company (non-telecommunication areas), and aim to maximize the payment transaction volume.
Going forward, the Financial business will further strengthen ties with the Group's telecommunications, e-commerce, and other businesses. While creating synergies within the Financial business, such as sending customers from the customer base of Group businesses and increasing payment transaction volumes through increased e-commerce usage, we will also generate Group-wide synergies to increase the number of service users and enhance user engagement.
- [Notes]
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- *1Cumulative number of users who have registered for an account (as of March 31, 2024)
- *2The share of “PayPay” was calculated by SoftBank Corp. based on the publication, “Stats - Code Payment,” published by PAYMENTS JAPAN on March 25, 2024.
- *1
Competitive advantages
PayPay Corporation
The primary advantage of “PayPay” is its product development capabilities, led by its own talented, multinational engineers from around the globe. By insisting on in-house development, it instantaneously adapts to changes in user needs while also continually enhancing security. In addition, utilizing its strong sales capabilities, it is building a network of merchants broadly throughout Japan. Another unique advantage of “PayPay” is its marketing capabilities to roll out effective marketing tailored to the business phase.
With the consolidation of PayPay Card Corporation into PayPay Corporation as a subsidiary, it will further strengthen the linkage between credit cards and smartphone payments based on the “PayPay” app as well as diversifying PayPay Corporation's business through collaboration with the group companies and expand revenue opportunities centered on financial services.
SB Payment Service Corp.
SB Payment Service Corp. provides payment services to a wide range of e-commerce businesses, both inside and outside of the Group. Payment transaction volumes were approximately ¥8.0 trillion in FY2023.
SB Payment Service Corp.'s strength in its business activities lies in its collaboration with Group companies. The Group operates in diverse fields such as telecommunications, e-commerce, QR and barcode payments, and social media, and has a large number of business partners and merchants. In addition to SB Payment Service Corp.'s own sales activities, it has dramatically increased the number of its merchants by offering a wide variety of payment services (credit card, QR code payments, electronic money, etc.) to the Group's partners and merchants to meet their various needs. Moreover, for the existing merchants, we aim to further increase the transaction volume per merchant by providing AI fraud detection services and store operation support services linked to “LINE”.
PayPay Securities Corporation
PayPay Securities Corporation is growing rapidly on the strength of its strong collaboration with “PayPay,” one of the largest cashless payment services in Japan. By creating a user-friendly interface from the “PayPay” top screen, the “PayPay Point Management” service, a simulated investment experience that uses points accumulated through the use of “PayPay”, provides an opportunity for users to become familiar with investing. For users seeking more substantial investment opportunities, we provide “PayPay Asset Management,” which allows users to buy and sell Exchange Traded Funds through a mini app in “PayPay” and a service that allows users to trade individual stocks and other securities, from “PayPay” or “PayPay Point Management”. By linking with “PayPay” in this way, we can keep the unit cost of acquiring a securities account at a very low level compared to typical Internet securities companies.
Business target
Segment income |
Turn profitable by FY2025 (Progress in FY2023)
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