PayPay Corporation is a Japanese company that develops
electronic payment
An e-commerce payment system (or an electronic payment system) facilitates the acceptance of electronic payment for offline transfer, also known as a subcomponent of electronic data interchange (EDI), e-commerce payment systems have become incre ...
services. It was established in 2018 as a joint venture between the
SoftBank Group
is a Japanese multinational conglomerate holding company headquartered in Minato, Tokyo which focuses on investment management. The Group primarily invests in companies operating in technology, energy, and financial sectors. It also runs the ...
and
Yahoo Japan through
Z Holdings
Z Holdings Corporation is a Tokyo-based holding company. Z Holdings owns Yahoo! Japan, Japan's largest portal website; Line, Japan's largest messaging app; and PayPay, Japan's largest mobile payment app. Z Holdings is controlled by another holdi ...
, their
holding company
A holding company is a company whose primary business is holding a controlling interest in the securities of other companies. A holding company usually does not produce goods or services itself. Its purpose is to own shares of other companies ...
.
With 38 million users, PayPay is the largest Japanese
mobile payment
A mobile payment, also referred to as mobile money, mobile money transfer and mobile wallet, is any of various payment processing services operated under financial regulations and performed from or via a mobile device, as the cardinal class of d ...
app.
In October 2018, it began a QR code and bar code-based payment service, which was developed in collaboration with
Paytm
Paytm (acronym for "pay through mobile") is an Indian digital payments and financial services company, based in Noida. It was founded in 2010 by Vijay Shekhar Sharma under One97 Communications. The company offers mobile payment services to co ...
, an India-based
payment service company.
From a smartphone app, users link their bank account and add money to their PayPay account. At the point of sale, the user makes a payment either by scanning a
QR code
A QR code (an initialism for quick response code) is a type of matrix barcode (or two-dimensional barcode) invented in 1994 by the Japanese company Denso Wave. A barcode is a machine-readable optical label that can contain information about th ...
, or by having the clerk scan a bar code on the smartphone.
2020 cybersecurity incident
PayPay server was hacked on November 28, 2020 which was originated in Brazil. As per the operator of PayPay, a server containing personal and financial information of its entire userbase was compromised. The company acknowledged that configuration flaws led to unauthorized access to information. The service operator was later notified of the incident and preventive measures were taken.
References
{{Reflist
Financial technology companies
Mobile payments
Online payments
Payment systems