Wednesday, May 12, 2021

Paytm provides technological support to Japan's payment app PayPay

 SoftBank is aiming to take PayPay public; Paytm may also get some stake in the app


Indian digital payments firm Paytm is providing technical support to Japan’s payment app PayPay, which multinational conglomerate SoftBank is aiming to take public. Noida-based Paytm may also get some stake in PayPay.

PayPay is a QR (quick response) code-based payment app. It is a joint venture between SoftBank and Yahoo Japan, with Paytm as a technology partner. It was founded in June 2018. PayPay has nearly 40 million users and has witnessed 2 billion annual transactions.

“We want PayPay to IPO in the future so that they would become independent,” said Junichi Miyakawa, who became chief executive of SoftBank Corp last month, at an earnings briefing. “So rather than having the dependent business model that they have now, we want them to be independent. And I don’t think that would be too far out in the future.”

SoftBank said PayPay has been growing by 2.5 times year-on-year, and the firm is expected to continue to maintain that momentum. The number of merchants has increased to 3.60 million. SoftBank revealed that PayPay’s GMV (gross merchandise volume), a measure of transaction volume, reached 3.2 trillion yen in the year ended March.

Z Holdings, the parent of Yahoo Japan, will be collaborating with PayPay and expand different businesses.PayPay is expected to become a super app and a gateway to the fintech ecosystem.

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