PayPay has announced a partnership with Visa to establish a new company in the U.S. as part of their effort to expand their payment services internationally.
PayPay, a leading QR code payment service in Japan, has formed a partnership with Visa, an international credit card brand, to advance their payment service initiatives. The companies announced on the 12th that they will be establishing a new company in the United States that aims to provide a digital wallet compatible with both tap payments and QR code payments. This marks PayPay's first foray into international services and leverages Visa's extensive customer network for its operations.
The new company will reportedly be majority-owned by PayPay, although specific details regarding the funding percentages are still under consideration. The timeline for launching the new services remains undecided, but they plan to start in California, as it is one of the key markets in the U.S. The company believes there is significant potential in the American consumer market, which is approximately nine times larger than Japan's, with a cash payment market estimated at around 300 trillion yen.
In addition to the U.S. expansion, PayPay is also looking to introduce new services for both domestic and inbound customers in Japan, further diversifying their offerings in the competitive payment landscape. This strategic move not only highlights PayPay's ambition to expand internationally but also signifies the growing importance of digital payment solutions in easing consumer transactions both locally and abroad.
