Japan's e-commerce market is worth roughly 20 trillion yen a year, ranking among the top four in the world, and the cashless payment ratio has climbed to about 40% thanks to the government's cashless promotion policy. QR payment is at the forefront of this shift, and PayPay, with over 65 million registered users, is Japan's No. 1 QR payment service. It is operated by PayPay Corporation, part of the SoftBank / LY Corporation group, and since its 2018 launch has expanded its user base through large-scale point rebates, and is now used for everyday payments ranging from convenience stores to online shopping.

Merchants in Korea serving individual consumers in Japan online should consider prioritizing PayPay. Especially in categories with a high share of mobile purchases and average order values in the thousands to tens of thousands of yen — such as fashion, general goods, and K-content commerce — PayPay payment, which is completed with just app authentication and no card number entry, can be expected to reduce drop-off at checkout. Also check the comparison table below for other methods worth combining with it.

Japanese consumers pay in yen (JPY) by presenting a QR code or barcode in the PayPay app, or through app authentication at an online checkout, with the amount deducted from their app balance or a linked bank account or card. Hecto Financial receives this payment locally in JPY and, after currency conversion, settles with the merchant in Korea in one of the currencies selected under contract — USD, KRW, or JPY. Details of the integration method, such as online redirect or app invocation, need to be confirmed in the technical documentation.

Under a single contract with Hecto Financial, a company in Korea can consider accepting this payment method without establishing a local entity in Japan or contracting directly with PayPay. However, the final approval outcome and specific terms (settlement cycle, fees, settlement currency options) vary by business category and transaction volume, so consultation with the sales team is needed before signing a contract.

• Business registration country

  Confirm contract eligibility for businesses registered in Korea

• Sales channel

  The integration approach differs depending on whether sales are online only or also include offline stores in Japan

• Product categories handled

  Check in advance whether your products fall under categories restricted by the PayPay operator's merchant policies

• Compliance with local regulations

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

Hecto Financial receives PayPay transaction proceeds in the yen (JPY) that the consumer paid. After currency conversion, the merchant in Korea receives the funds in whichever of the three currencies — USD, KRW, or JPY — was specified under contract, with the settlement cycle and fee rate set according to the contract terms. When a refund occurs, both PayPay's own refund policy and Hecto Financial's operating standards apply, so confirm the refund window and processing deadline at the contract stage.

• 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 Japanese government's payment policy, including the cashless payment ratio. If the content of this page differs from actual regulations, the official source takes precedence.