Japan’s PayPay is venturing beyond its domestic market for the first time, with plans to enable QR-code payments at South Korean stores later this year, according to Nikkei reported. The move marks a strategic pivot for the SoftBank Group-backed payment service, which has primarily focused on accommodating foreign visitors within Japan.
The LY Corporation-owned platform has historically partnered with international services including South Korea’s Kakao Pay, China’s Alipay, and Taiwan’s payment systems to allow their users to spend at Japanese merchants. However, Japanese PayPay users have faced significant restrictions abroad—the app previously wouldn’t even function on foreign Wi-Fi networks until limited overseas features were introduced in April 2024.
The timing aligns with South Korea’s robust mobile payments growth. The market is projected to expand at a 20.1% compound annual growth rate through 2030, reaching $4.79 billion, with digital wallets expected to overtake credit cards by decade’s end. Korean consumers already conduct over 75% of online purchases via mobile devices.
PayPay’s expansion faces established competition from dominant local players including Naver Pay, which holds a 22% e-commerce market share, and Kakao Pay, deeply integrated into the KakaoTalk messaging ecosystem. The Japanese service will need to demonstrate clear value propositions to gain traction in Korea’s saturated mobile payment landscape.
