New Delhi: Paytm, run by One 97 Communications Ltd, has launched a barcode-based smartphone payment service called PayPay in Japan, in a joint venture with SoftBank Corporation and Yahoo Japan Corporation, the company said in a statement on Monday.

Mint reported on July 27 that Softbank had tapped Paytm, India’s largest payments service provider, to set up mobile payments in Japan by November.

SoftBank Group is one of the largest investors in Paytm. PayPay Corp., established in June, will help SoftBank build and expand its payment system in the country.

Incepted in October 2018, PayPay allows users to store money from a bank account in their “PayPay" wallet and aims to promote the use of cashless payment in Japan, which is heavily dependent on cash for payments. Japan accounts for only 20% of overall cashless transactions in the country.

With the launch of “PayPay," Yahoo Japan will terminate “Yahoo! Wallet"—its current smartphone settlement function.

PayPay is build around the QR (quick-response) code technology that Paytm set up in 2015, which currently offers mobile payments to more than 350 million customers and over 9.5 million merchants.

A QR code is a machine-readable label that contains information and after scanning the code, buyers can enter the payment amount and approve the payment.

“It is a great strength to introduce Paytm’s high technology and solution to PayPay and I am confident that it will greatly contribute to the expansion of users in Japan," Ichiro Nakayama, president and representative director CEO at PayPay Corporation.

Paytm plans to offer 500 yen in electronic money to new customers downloading the PayPay application in Japan. It will also forego fee for the barcode services until September 2021.

“We are happy that the PayPay Corporation is utilizing our QR-technology and prowess to enable cashless payments in Japan. We are sure that this will give substantial growth to their business as they provide personalized and seamless digital payments experience to their customers. PayPay was developed with teams from three different countries working together…" said Madhur Deora, chief financial officer and senior vice president, Paytm.

Customers will be able to select from two payment methods - credit cards and electronic money.

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