As part of efforts to expand internationally, PayPay ¡ª Japan¡¯s largest mobile payment platform with over 70 million users ¡ª will debut in South Korea as early as this month.
The service will be available in any stores or restaurants in South Korea that accept payments on the South Korean digital payment platform Zero Pay or China¡¯s Alipay Plus.
Users who have completed identity verification on the app ¡ª which must be done in Japan prior to leaving the country ¡ª will be able to automatically use the overseas payment mode in South Korea.
The amount will be automatically converted to won, and users can confirm on the spot how much they paid in yen, making it easier for travelers to manage conversions and keep track of their spending.
The payment will automatically include a 3.85% handling fee factored into the exchange rate applied at the time of the transaction.
Payments can be conducted like in Japan, meaning they can be made either with money from a PayPay account or through PayPay credit. PayPay points ¡ª awarded to those who use either payment method ¡ª will be granted to users the same way they are domestically.
While the service will become available through the Alipay Plus network, user information will not be shared with Alipay Plus or any of the local merchants who offer the service.
To prevent unauthorized payments, the app cannot be used on a new device outside the country.
PayPay, a SoftBank Group firm, has been using the Alipay Plus network in Japan to allow visitors to the country to use foreign cashless payment services at stores that accept PayPay.
The firm said it had moved to implement its international service first in South Korea as it is the most popular country for people in Japan to visit.
According to data by major travel agency JTB, nearly 300,000 Japanese people visited the country in July, followed by 172,000 who visited the U.S.
PayPay conducted a survey in September 2024 on PayPay users who traveled to South Korea within a year of that month, and roughly 90% of respondents said they wanted to use the payment platform in the country.
Although the launch of the overseas payment service is currently limited to South Korea, PayPay said it is working to expand to other countries so that users can conduct payments and money transfers overseas with ease using the same platform they regularly use in Japan.
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