Creating a Service Loved by Users and Society from Scratch: The Work of Merchant Strategy

The “Professionals” series showcases talented experts who support PayPay Group’s operations.
This time, we interviewed Danno-san, Senior Manager of the Service Planning Department, which is in charge of developing new services in the Merchant Business Strategy Division. We asked about recent initiatives, what motivates him, and what he values in his job.

I Want to Update Society with Fintech

Tell us about your background and why you joined PayPay

In 2018, I volunteered to apply for an opportunity to work at PayPay as a secondee from SoftBank. The reason was simply because I was excited by the company’s vision of changing society through cashless payments. I had been reading articles about how mobile payments were dramatically changing people’s lives in China back then, and I thought that I could actually get involved in changing society in Japan through fintech, with payments as a starting point.

The main reason I decided to actually transfer in 2020 was because I could tell from the time that I had spent at PayPay that it provides an environment for me to grow the most. It has diverse and excellent members, and also I can work closely with top management and get frequent feedback. I don’t think there is a better place to work than PayPay if you want to learn a lot through taking on new challenges.

User Satisfaction Is Paramount, and the Key Is to also Make Merchants Happy

What is the mission of your department?

The Merchant Business Strategy Division, which is responsible for merchant subscription services, the second pillar of PayPay after the payment business, has the vision, “More customers with PayPay.” The Service Planning Department is mainly responsible for launching and promoting services in merchant subscription services from scratch. We are working every day to deliver new value to merchants in the form of sales promotion and business support, and to app users in the form of offers and convenience, so that merchants can realize as quickly as possible that PayPay attracts more customers.

What do you find difficult in your work?

Most of the services we offer are B2B2C services, so we have to create services that make both users and merchants happy, which is challenging but fulfilling. For example, what may be a benefit to the merchant may become a distraction or trouble to the user, so in order to avoid this, we must think about what would be the best solution for both.

What is important here, though, is that we believe that user benefits should always be prioritized. This is where I learn something new every day in planning services at PayPay. The first thing that we need to make sure of is for our users to feel comfortable using the service, so that more people will come to the stores through PayPay, which will lead to increased sales for the merchant. This leads to a win for all the three parties. When I look at the whole picture like this, I can work with the realization that we are making our society more convenient and affluent.

What specific projects are you working on?

Some of the services that I am responsible for include PayPay Gift Voucher, SKU Coupon, and PayCAS, which is a multi-payment terminal.

PayPay Gift Voucher is a payment method with a validity period that is available at a limited number of stores. We currently provide the service as thank-you gifts for Japan’s hometown tax program together with companies operating web portals for the program. As of the end of September 2023, 498 local governments have introduced the service, which we believe can be utilized for a variety of use cases. For example, it is beginning to be used for measures such as a premium e-coupons, which is promoted independently by each local government. We hope that PayPay Gift Voucher will be used in a wide range of applications and help revitalize local communities.

Next, SKU Coupons are a coupons acquired in advance that reward points for the purchase of specific products, and it was launched in July this year. We provide this feature through capturing the real-time data on “who bought what.” By building this kind of infrastructure, we would like to utilize the data not only for coupons, but in the mid-to-long term, to create a mechanism that can attend to all sorts of customer needs, such as making it easier to find personalized offers based on a customer’s preferences on the app. We will make sure that this service will be beneficial not only for users and merchants, but also for manufactures (the ones who make the products) as a sales promotion tool, and bring value to all stakeholders.

The third service, PayCAS, is a portable payment terminal that can be used as a one-stop solution for accepting code payments, credit cards, and e-money, and was fully launched in April this year.
‌Currently, people see PayPay as a QR code payment company, but in the future, we would like to develop sales promotion and business support services tailored to the challenges and situations of merchants by capturing a wider range of data through multi-payment solutions like PayCAS.

Contribute to Society by Leveraging a Wealth of Strengths

What fascinates and motivates you about developing new business at PayPay?

While other companies often face bandwidth issues when developing new business, PayPay offers opportunities to cater to new markets and needs in Japan as it can leverage its immense foundation as a payment business and outstanding development capabilities. What I find exciting about my job is that if there is something that makes sense as a business, I can work toward making it happen promptly while seriously discussing with excellent engineers how to put users first.

I am also motivated by the fact that I am involved in a service of great social significance through providing DX support to merchants. What used to drive me before was to achieve personal growth, but now that has been changing through my various experiences at PayPay.
I can provide innovative solutions for sales promotion and store operation with our merchants by planning new merchant subscription services, which as a result will bring a better UX to users in the form of offers and convenience. I can also support local communities through different features such as PayPay Gift Voucher that I mentioned earlier. The way I can contribute to society by providing those new values and the excitement that comes with them are what motivate me now.

How’s the vibe in the team?

Whenever I have a problem, I go on Slack and say, “Can anyone help me understand this?” When I send out a message like this, I will get a response right away from someone who might have an answer. I feel that the team as a whole has fostered a culture of mutual support. Even with the hybrid work style, communication via Slack is open and very active, and the atmosphere is friendly.

Another aspect of my team is the amount of vertical and horizontal communication. For example, if there is a problem in another department, we often connect them to someone in our department who is strong in that area. The Senior Managers and Division Heads are added to the Slack channels created for each project and service, so there is a system in place for the team to monitor daily work and make adjustments if necessary in order to improve productivity. Having said that, we are still learning by trial and error.

Did you find anything different than you expected after joining the company?

I was surprised, in a good way, to see an organization where everyone is working proactively toward a goal. It’s impossible to find someone with a negative attitude towards work at PayPay. I think PayPay’s strength lies in its culture where once we set a goal, there is no giving up or complaining, but rather everyone thinks seriously about how to achieve it.

Building an Ecosystem to Attract Customers

What do you want to accomplish in the future?

In the mid-to-long-term, we would like to create an ecosystem that can semi-automatically match app users with merchants through our merchant subscription services. We call this the “service vending machine.”

For example, when a merchant on PayPay for Business (management tool for merchants) types in “I want to increase the number of new customers to X,” the system immediately suggests specific sales promotion measures and the necessary budget, and all they have to do is click if they are OK with it. Then, the offer will be recommended to those who have a high probability of going the store based on our data, leading to a store visit. The results will be shown to the merchant in a way that is intuitively understandable.

I believe PayPay has dramatically changed users’ lives with its code payment and money transfer functions. But going forward, I would like to create a better future for our users by launching various merchant services that will make our customers say “PayPay changed my life!” or “My life is easier with PayPay!”

What do you value in your work at PayPay?

All of the PayPay 5 Senses are important, but I think the one that resonates with me the most is “Be sincere to be professional.”
Also, I personally believe in having my own standards and doing the right thing according to them. I want to work to improve society and not forget that I am paid for delivering the service that make all users happy.

Second, I try to put myself in the other person’s shoes. No job can be done alone by myself, and PayPay in particular is a diverse organization, so I always think about what the other person would want. When I talk to people from another team, I make sure to use a language that they can understand and express gratitude to them as well.

Third, I make sure to be particular about the details. While it is important to know what the fundamental issues are and whether any perspective or points have fallen through the cracks in our discussions, I also pay close attention to the nuances of expressions and edge cases. As the saying goes, “God is in the details.” I believe that making no compromise in the details will result in a good service.

Finally, any words for job seekers?

PayPay is a perfect environment for those who are always looking for growth opportunities and those who can take the initiative and work proactively toward organizational goals. The ability to communicate and involve others without waiting for instructions is also required.
In addition, this is a company that can change society with speed, so we’re looking for individuals who are willing to continuously take on the challenge of doing something unprecedented and of great social significance!

*Recruitment status and employee affiliations are correct at the time of the interview.