PayPay for Business Transactions in Japan: A Setup Guide

PayPay in Japan is one of the most convenient forms of payment, as all you need is your phone.

But what about from the business side? What if your business wants to set up a PayPay business transaction in Japan?

You’ve come to the right place, as this article explains how to set up PayPay for business use, making it easy to get started.

Why should businesses use PayPay?

While cash is still a popular payment option, Japan still offers many ways to pay, whether you are a tourist or a local.

Thus, businesses have also adopted many of these payment method services, including PayPay, for two main reasons:

Wide user base

Japan has over 65 million PayPay users , making it one of the most popular payment methods.

As such, it’s a strategic development to include PayPay as a cashless payment method as PayPay allows its users to pay with:

• PayPay points

• Credit cards

• Debit cards

Ease of use

Similar to tapping your IC card to get into and out of the train station or buying a drink at the vending machine, customers can pay using PayPay with just a couple of taps.  

There are two pays that customers can quickly pay:

1. PayPay Barcode Payment: Show your barcode to the staff so they can scan it. 

2. Scan the store’s QR code, input the amount, tap “Pay,” and show the staff the completed payment.

Both options allow customers to quickly pay for their items without handling cash or counting coins. 

How to add PayPay as a payment method for your business

Translated step-by-step overview on how to start using PayPay for business

There are two slightly different PayPay business applications to apply, depending on whether you want your business to use a payment terminal or to receive a QR code.

1. Sign up for a PayPay merchant account.

First, you need to register your business bycreating a PayPay merchant account.

There will be a screening process, which includes submitting:

• Required documents

• An exterior and interior photo of your company

• Additional documents (if applicable)

The required documents depend on whether you are a sole proprietor or a corporation. In general, you will need to submit:

• One of the following identity documents:

  • Driver's license

  • Residence card and special permanent resident certificate

  • My Number Card

  • Japanese passport + address verification document

  • Various health insurance cards + address verification documents

Additionally, you will need to submit these documents:

• If you are a sole proprietor, an address verification document that was issued within the last 6 months is needed:

  • ① Utility bill receipts (electricity, gas, water, etc.)

  • ② Certificate of Resident's Card Details

  • ③ Copy of resident's card

• If you are a corporation, your 13-digit corporate number is needed.

PayPay created this nice checklist (Japanese) to ensure you have everything you need.

2. Log into the PayPay business account.

Once your application is approved, download the PayPay Business App or log in online to view your transaction and manage your sales.

You can also track customer trends in your account, supporting your business’s growth and marketing efforts by offering insights to optimize your sales strategy.

3. Set up your payment option.

There are 3 payment options that your business can use, each with a different setup. 

1) Multi-payment terminal type

PayCAS Mobile's multi-method payment system service

Paypay’s PayCAS Mobile is their multi-payment terminal that allows customers to pay via:

• QR code

• Swiping

• Touch pay

• Chip reader

PayPay recommends this payment type for those who want to:

• Offer various payment methods to customers

• Consolidate multiple payment methods and contracts into one

• Save on card payment fees

PayCAS Mobile offers the most payment methods to customers, including credit cards, electronic money, IC card payment, and QR code payment, including Rakuten Pay, AU, and others. 

2) PayPay QR code payment type

PayPay recommends businesses use their QR code payment type if:

• Their main payment method has been cash, but they want to add other payment methods.

• They want to start using cashless payments easily and want to learn how to use them.

• They have customers who often ask, “Can I use PayPay?.”

You'll receive a PayPay QR code kit with everything you need to set up your PayPay QR code for your business, including a start-up guide.

If you want to set up your QR code immediately after being approved, you can log into your business merchant account and do the following:

• Click the「受取」button at the bottom right corner.

• Set the QR code amount to be 「金額指定なし」so no specific amount will be preset.

• 「プリント」for print or 「ダウンロード」to download.

Once you have your business PayPay QR code, place it near your register or in front of your store to inform your customers that you accept PayPay.

3) PayPay for your online business

Online stores have a separate application process . After an application screening, you can use PayPay for your online store.

On the customer screen, they can use PayPay to make payments on their phone or laptop. 

Head to PayPay Support for more information.

4. Display your business PayPay QR code.

Promote your PayPay business QR code where customers can easily see it, such as near the checkout counter or near the entrance.

Best practices for PayPay business QR code

While using PayPay may be simple to use from the customer side, the business side might look a little different.

1. Train staff: Ensure your employees know how PayPay transactions work.

2. Monitor transactions: You can check your businesses' transactions on the PayPay business app or your online account.

3. Promoto PayPay payment method: Especially if you started using PayPay as a payment method recently. You create announcements and promotions to help advertise your business.

Frequently asked question

How do I open a PayPay account?

You can open a PayPay account by downloading the app on the Google Play Store or the App Store. Input your phone number and a password. Enter the verification code that is sent via text message. Please note that you might have to change your phone’s region to download PayPay and need a Japanese number. 

Can you use PayPay online?

Yes. If the online store allows PayPay as a payment method, you can use PayPay online. If you are an online store that wants to start using PayPay, you’ll need to apply first. Once approved, you can add PayPay as an online payment option. 

How to get PayPay points?

PayPay points are PayPay’s point card system, and every transaction can accumulate points for future payments that accept PayPay. These points are not expiring, so users can use them whenever they want. 

In closing

Setting up PayPay for business transactions can feel tedious. Still, once everything is in place, your customers have gained another cashless payment method.