Japan's shift to cashless payments has largely been driven by mobile carriers. As the government's targeted cashless ratio of 40% was reached, each of the three major carriers rolled out its own QR payment service, and au PAY is the one operated by KDDI (au). Its user base consists of nationwide au subscribers and members of the shared Ponta points program, giving it a broad age range rather than a skew toward young, metro-area users.

Its core customers are value-conscious consumers who care about benefits tied to their au plan and Ponta point accrual, giving it strong overlap with merchants in Korea selling repeat-purchase products in Japan, such as daily necessities, food, and household goods. A common strategy is to combine it with services that have a different user ecosystem, such as PayPay, to broadly capture customers across carriers.

Consumers pay using their au PAY app balance (topped up via bank transfer, combined billing with their phone plan, and other methods) through QR or barcode payment or online payment, with the transaction processed in yen. Hecto Financial collects the payment proceeds locally in Japan in JPY, then converts and settles to the Korean merchant in USD, KRW, or JPY as chosen under the contract. The online integration method (app launch, redirection) should be confirmed in the technical documentation.

au PAY integration can proceed under the name of a Korea-based entity within the scope of a Hecto Financial contract, so a separate local contracting process in Japan is often unnecessary. Eligibility, fees, and settlement terms are finalized after a review of the merchant's industry and transaction structure.

• Business registration country

  Confirm contract eligibility as a merchant registered in Korea

• Sales channels

  The integration approach differs depending on whether you are online-only or also include physical stores in Japan

• Product categories

  Confirm in advance whether your products fall under categories restricted by the AuPay operator's merchant policy

• Local regulatory compliance

  Confirm compliance with Japan's payment and foreign-exchange regulations (see official sources below)

The settlement structure has two stages. Hecto Financial first collects the yen proceeds paid via au PAY in Japan, then converts the currency and pays out to the Korean merchant in one of USD, KRW, or JPY as chosen under the contract. The settlement cycle and fee rate vary by contract terms, and since refund procedures follow both au PAY's own rules and Hecto Financial's operating policy, please check the refund processing deadline before contracting.

• Bank of JapanProvides official information on Japan's payments and payment systems.
• Japan Ministry of Economy, Trade and Industry (METI) cashless policyOfficial data on the cashless payment ratio and other aspects of the Japanese government's payment policy. If this page's content differs from actual regulations, the official source takes precedence.