PayPay Securities for Investment Beginners: How We Hit 1 Million Accounts and What’s Next

Welcome to the Project Story series, where we focus on what takes place behind the scenes of PayPay Group’s major projects.
We will share the difficulties and the pivotal mindset which led to the success of each project through anecdotes of those who were in charge.

This time we interviewed two members from PayPay Securities—Sato-san, Head of the Marketing Division, and Nagayama-san, Head of the Business Promotion Division—about how they grew PayPay Securities to over one million.

Focus on Investment Beginners: The Path to Developing PayPay Invest

The number of PayPay Securities accounts topped 1 million. How do you feel about this accomplishment?

Nagayama:
We reached the one million mark in February 2024. The number of accounts as of March 2023 was about half that, which means that the customer base of PayPay Securities almost doubled in a year. This is mainly thanks to PayPay Securities releasing “PayPay Invest,” a mini app that allows users to manage their assets within the PayPay app. We have developed the service with the aim of making investments accessible by incorporating asset management features into a platform, like PayPay, that is familiar to would-be investors. The dramatically increased number of accounts convinced us that PayPay has great potential as a financial services platform.

Sato:
With the new NISA, asset management is beginning to attract attention throughout Japan. Due to that, we developed PayPay Invest with a dogged insistence on ease of use and understanding so that even beginners can easily trade stocks and mutual funds.
Our company has been aiming to be “No. 1 in investment by beginners” and “No. 1 in new NISA,” and thankfully we now have over one million accounts, which feels like we are finally at the start of something. About 70% of our accounts are opened by investment beginners so we are very pleased about that, and are also grateful for the attention we’ve garnered from users and the media.

Reference:(March 4, 2024 press release; in Japanese only) 『【はじめての資産運用はPayPay証券】開設口座数が100万口座を突破！ ～ 「PayPay資産運用」で100円からNISAをはじめよう！ ～』

How was it like developing PayPay Invest?

Nagayama:
First, for those who have never invested, we provided the “Earn Points” service, which allows users to “invest” their points within the PayPay app, helping them gain a hands-on experience of what asset management is like. The service was released in 2020 and over 16 million people use it as of April this year. When we checked in March, around 90% of the people who opened a PayPay Securities account via PayPay Invest have used Earn Points.
Next, to have users switch over to actual securities trading, we began to plan and develop PayPay Invest. At the time, no securities services were offered on major cashless services like PayPay and it was an industry-first initiative.

Sato:
Since having both point investment and securities services on one payment app was a first in the industry, we had difficulty considering requirements and specifications. This goes particularly for the securities service, but we had to comply with various laws and regulations, coordinate with diverse stakeholders, and were even forced to reconsider specs and do some redevelopment due to changes in the environment during the project. There were so many difficult phases that I sometimes thought this service won’t see the light of day.
I was at the forefront of a project which PayPay Securities staked its future, so I devoted all my energy to coordinating and negotiating with inside and outside the company every day. I actually don’t remember much about those days (laughs). While feeling considerable pressure, I nevertheless had high hopes that we could disrupt the industry if we could bring this service into the world, so I was adamant about releasing it no matter what.

Nagayama:
PayPay Invest is equipped with unique features for the convenience of users. For example, when selling stocks, it usually takes a certain amount of time to get cash, but PayPay Invest has a feature that allows users to immediately receive money via PayPay. This was patented jointly by PayPay and PayPay Securities.

In addition, purchasing stocks usually requires a certain amount of capital because it is common in the securities industry to buy stocks by the share. That is one of the reasons why investing has not taken off in Japan, so PayPay Securities started offering a service that allows users to purchase stocks from 100 yen with increments of 1 yen so that they can start asset management more easily.
At the time, there were no securities companies in Japan that offered such functionality on a cashless payment service like PayPay, so we had great difficulty even getting people around us to understand the concept.

Sato:
It took quite a long time from planning to release of the service, but we stuck to our idea of creating a service accessible to investment beginners. By specializing in usability and simplicity for the users we wanted to lower the barrier of entry to investments by providing a service that makes asset management simpler for folks who have never invested through conventional securities companies.
After the service was launched, we gained popularity thanks to the new NISA, and partly due to the ease of starting with the PayPay app. As a result, we were able to hit the one million milestone.

Reference:

・(April 18, 2024 press release; in Japanese only) 『PayPayアプリで疑似運用体験ができる「ポイント運用」の運用者が1,600万人を突破し、業界最大規模をさらに更新！ ～「PayPay資産運用」を通じた証券口座開設者の約9割が「ポイント運用」を体験 ～』

・(March 12, 2024 press release; in Japanese only) 『NISA口座の開設数が申し込み受付開始からわずか半年足らずで20万件を突破！～新たにNISA口座を開設したユーザーの割合は95%以上！～』

How did you overcome difficulties?

Nagayama:
This project was supposed to have a huge impact on society and industry, lowering the barrier of entry to investments in Japan, so that everyone can start managing their assets via PayPay. That idea gave me a sense of mission and kept me going despite any difficulty.

Sato:
When I had a hard time, I often recalled my experience from my previous job. There was a serious failure when fully renewing the financial app which I was in charge of, and this had a major negative impact on the business. It was so tough that I thought nothing could be more difficult, but I somehow managed to overcome the challenges by solving issues one by one with all I could muster. So this time around, I felt that I would be okay no matter what happened.

Nagayama:
I can relate to that. In my previous role, I was in charge of B2B alliances, and it was quite a challenge to align the various interests and positions of all involved parties. Given that PayPay Securities is a joint venture between PayPay, SoftBank, and Mizuho Securities, the business structure here is very similar to what I handled before. This familiarity fueled my determination to succeed, and I approached the project with great passion, leveraging my past experiences.

Sato:
I believe that individuals who have taken initiative and accomplished goals in challenging situations possess what I call “lastmanship” (having the sense of being the last person who can prevent a project from failing). When working with such people, I notice they exhibit a strong sense of responsibility and mission, never giving up easily. Overcoming significant hardships is crucial for developing this mindset.

Aiming to Realize a World Where Everyone Takes Asset Management for Granted

Can you describe your team culture?

Nagayama:
Our team culture is dynamic and fast-paced, quite unlike typical financial institutions. From my previous experience in a conventional financial setting, I find PayPay Securities to be a more egalitarian organization where management is closer to the employees, enabling quicker decision-making.

Sato:
At PayPay Securities, speed and user perspective are paramount. Our discussions always revolve around how things appear to users and their ease of understanding. Many team members are driven by a desire to change the traditional financial domain.

When do you find your work most rewarding?

Sato:
I find it rewarding that I can fully leverage my know-how across various areas, including business, service, and marketing planning. As PayPay Securities is a compact organization, we can proactively tackle challenges in peripheral areas, bringing out the full force of our expertise. It’s exciting to work on projects that push the boundaries of the existing financial framework.

Nagayama:
In my division, good ideas are adopted regardless of position or title if they benefit PayPay and PayPay Securities. Unlike common financial institutions, it’s refreshing to see active input from field employees suggesting new services or improvements. This open culture has contributed to my growth as a manager.

What values do you uphold at work?

Sato:
I would say “Ego is not welcome, communication is necessary.” The strength of an organization lies in the ability to openly express principles and policies, spend time discussing various issues, and ensure everyone is aligned. I aim to build such a team by clearly expressing my views when necessary and carefully listening to different opinions.

Nagayama:
For me, “Believes in our product & team” is important. The business division I oversee works closely with the product teams. Unlike other financial institutions, PayPay Securities develops products in-house, allowing us to move swiftly. The Business and Product teams share a unified vision, discussing our service concepts and ideal UI/UX, striving to be the best securities company in Japan.

Please share your future goals and missions

Sato:
Japan’s investment population is still small, with many never having experienced asset management. With PayPay’s 63 million users (*as of March 2024), we aim to develop services linked to PayPay to increase PayPay Securities users. Recently, I saw two businessmen at a station platform comparing their point management performance. I envision a future where conversations about asset management, like “How much did you earn in NISA?” are common among friends and colleagues. I hope PayPay Securities will create a world where asset management is as routine as shopping or dining out with PayPay.

Nagayama:
We aim to provide services for those who have experienced investments through NISA and are looking for their next steps. By offering simple securities services within the PayPay app, closely linked to users’ daily lives, we hope to transform the financial asset landscape in Japan. There are still many services to develop in collaboration with PayPay, a platform provider. Although the path is challenging, we believe that PayPay and PayPay Securities can achieve this.

Lastly, we have a message for our readers!

Sato:
PayPay Securities is just at the beginning of its journey. We are committed to embracing new challenges and growing our business by continuously enhancing our services that bridge payments and securities. We need creative minds who can generate innovative ideas beyond the traditional financial sector and take initiative to bring those ideas to life.
We’re seeking not just financial industry professionals, but also individuals with diverse experiences and fresh perspectives. If you recognize the shortcomings of current financial services and are passionate about improving them, we want to hear from you.

Nagayama:
In many financial services, it’s typical to design offerings with legal constraints in mind. However, at PayPay and PayPay Securities, we prioritize crafting the best user experience first and then address legal and backend considerations. Working from the user’s perspective is a core principle that defines our approach.
As our company grows, it becomes increasingly important to ensure stable operations as a financial institution that safeguards customers’ assets, all while maintaining the dynamic spirit of a startup. If you can balance innovation with stability and approach projects with a flexible mindset, you will thrive with us.

*Job openings and employee affiliations are current as of the time of the interview.