PayPay rolls out digital wage payments amid Japan’s cashless drive
Employees in Japan can now receive up to 200,000 yen of their salary via PayPay, as part of a broader move toward cashless payments.
Japan has launched digital wage payments with PayPay, a popular QR-code payment app, becoming the first to gain approval from the government as part of its push for cashless transactions. From September, ten SoftBank companies, including PayPay, began offering employees the option to receive up to 200,000 yen of their salary via the app.
This move follows the labour ministry’s decision in 2022 to allow digital wage payments, starting in April 2023, to encourage cashless payments as a way to stimulate the economy. Employees who prefer not to be paid digitally can still opt for traditional bank transfers.
PayPay, which has over 65 million users, aims to enhance employee benefits by diversifying wage payment methods. The app’s operator cited a government survey showing that 40% of workers were open to receiving wages through payment apps.
To protect users, a 1 million yen limit has been placed on digital wallet balances, as app operators do not fall under Japan‘s deposit insurance system. Several other app providers are also seeking government approval to offer similar services.
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