Telecommunications and internet group SoftBank has invested ¥46bn ($419m) in Japan-based mobile payment service PayPay, TechCrunch Japan reported yesterday.
PayPay was formed by SoftBank and internet company Yahoo Japan in July 2018. It operates a platform that enables users to transfer money online and pay for items using QR codes on their mobile devices.
The system was launched on the back of 40 million accounts held by users of both SoftBank and Yahoo Japan’s Yahoo Wallet platform. Part of its technology is based on that developed by India-based digital payment system operator Paytm, which counts SoftBank’s Vision Fund as one of its main investors.
Users can also receive financial remittances through the platform, securing rewards for making certain payments. PayPay’s latest remittance campaign is currently underway and will involve users getting up to ¥10bn worth of reward points on purchases through the end of this month.
News of the investment came as SoftBank announced it intends to buy up to $4.2bn of new shares issued by Yahoo Japan to hike its stake from 12% to 45%.
