Japanese major digital wallet service ‘PayPay’ signed a strategic partnership with Visa to drive payment innovation both in Japan and globally. Combining the PayPay’s know-how about payment with the Visa’s digital technology network, they will build a global PayPay ecosystem. The first global market will be U.S.

For cross-boarder payment, they try to build systems for international travelers to Japan to complete their payments smoothly in PayPay member shops and for Japanese PayPay users to pay with PayPay in foreign destinations. 

Through a new company established by PayPay as part of its global expansion, the new company will begin considering the development of a digital wallet that supports both NFC (touch payment) and QR code payments. As an initial step in the US, the company aims to build a network of QR code payment participating stores in select areas such as California, and Visa will support the company by providing investment, technology, and expertise.

In Japan, the new company will enhance the user experience and provide value to PayPay member stores. Specifically, it plans to utilize Visa's technology to provide a service that consolidates the functions of PayPay Balance, PayPay Card, and PayPay Bank. This is expected to enable users to centrally manage multiple payment methods within the app.

Also, it will expand the acceptance of card payments at PayPay member stores, which previously only accepted QR code payments, thereby expanding payment method options.