Segment composition ratio

Revenue Revenue
Financial segment Operating loss Financial segment Operating loss
  • *
    Operating loss of the Financial segment for FY2022 is ¥12.4 billion.
  • *
    Operating income of “Others” for FY2022 is ¥292.5 billion. “Others” includes ¥294.8 billion associated with a gain on step acquisition in connection with the conversion of PayPay Corporation into a subsidiary.

Business strategy

“PayPay” has more than 51 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.

  1. *1
    Cumulative number of users who have registered for an account (as of September 30, 2022)
  2. *2
    Ratio calculated by PayPay Corporation from the “PayPay” data on disclosed material by Payments Japan Association (Results of Survey on QR Code Payment Usage Trends in Japan in FY2021)

Competitive advantages

PayPay Corporation

The primary advantage of PayPay is its product development capabilities. By insisting on in-house user interface development, currently we are providing updates at the pace of approximately once a week. It instantaneously adapts to changes in user needs while also continually enhancing security. In addition, utilizing our strong marketing capabilities, we are building a network of merchants broadly throughout Japan. Another unique advantage for PayPay is its ability to roll out highly original promotions. Each campaign has a clear goal, such as to raise recognition or tighten its position for everyday usage, implementing effective marketing geared to its business phases.

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 ¥5.3 trillion in FY2021

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 code 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