Behind the Scenes of PayPay Group’s Major Projects: The Project Story Series.
In this series, we delve into the significant projects realized by PayPay Group, shedding light on the challenges and meticulous efforts behind them through interviews with key players. This time, we spoke with two individuals who spearheaded the digital salary payment project.
Haniya Suzuki
Leader of the Digital Payroll Team, Finance Platform Development Department, Finance Business Strategy Division.
He has a background in designing and developing core systems for financial institutions and project management. He joined LINE (now LY Corporation) as a PMO, handling system planning and project management. Driven by a desire to engage in the planning and development of new financial services, he then moved to PayPay.
Chizuko Ohtsuka
Digital Payroll Team, Finance Platform Development Department, Finance Business Strategy Division.
After engaging in sales promotion at SoftBank BB (now SoftBank), She worked on payment and acquiring service planning at SB Payment Service. She joined PayPay in 2018 and has been involved in the digital payroll project from its inception.
Creating a Digital Wallet for Automatic Salary Deposits to Promote Paycheck Use
Please give us an overview of the Digital Payroll Project that you two carried forward
Chizuko:
Digital salary payments allow employees to receive their salaries into a new fund transfer account in addition to the traditional methods of cash or bank account transfers. PayPay has launched the “PayPay Paycheck” service for employees of SoftBank Group companies on August 14, 2024. By the end of 2024, the service is expected to be available to all PayPay users (limited to users who have completed identity verification procedure).
PayPay essentially functions as a digital wallet. It enables daily shopping, checking coupons and stamp cards, and using financial products like investments and insurance. Receiving your salary directly into your PayPay account means you have instant access to your money on payday without needing to withdraw cash from an ATM.
Haniya:
Historically, salaries in Japan were handed out in cash. However, the unsolved case in which a truck with approximately 300 million yen loaded in was robbed by a man dressed as a police officer 1968 highlighted the risks of carrying large sums of money, leading to the widespread adoption of bank transfers for salary payments. Digital salary payments represent a potential paradigm shift in how we perceive and manage salaries. Traditionally, salaries deposited into bank accounts were often saved. Through PayPay Paycheck, we aim to promote seamless salary utilization via payments and transfers on PayPay.
What are your responsibilities and roles in the project?
Chizuko:
I joined PayPay in 2018 and began considering digital salary payments shortly after. During PayPay’s early stages, we operated with a “do whatever it takes” mindset, planning services and supporting products while conceptualizing digital salary payments.
To initiate digital salary payments, we needed a designation from the Minister of Health, Labour and Welfare as a fund transfer service provider. I was responsible for designing the service to meet labor standard regulations and handling the designation review process.
Haniya:
I joined when PayPay Paycheck service was nearly complete, and we were awaiting designation from the Ministry of Health, Labour and Welfare. Initially, my main task was to consider future functional improvements. However, as we prepared for the release, unexpected challenges arose, making it difficult to set a clear release date. We had to consider scope changes and other options. Once the release became feasible, I took on the role of PMO, overseeing the overall progress, identifying issues, and reporting to division and department heads.
The Drive for Japan’s First Release: Transforming Money Flow
How was the project launched?
Chizuko:
The considerations for digital salary payments began with just one other person and me. At the time, discussions about digital salary payments were just starting within the Cabinet Office and the Ministry of Health, Labour and Welfare. We monitored public information and considered how PayPay could address digital salary payments.
As requirements became more detailed, “Specific Guidelines for Fund Transfer Service Providers“ were published. We then detailed our initial service specifications and began development with our product team. We submitted our designation application on April 1, 2023, aiming to be the first in Japan to receive it.
Our commitment to being the first in Japan stems from our belief in the future potential of digital salary payments to transform money flow. We prepared as a united team to deliver digital salary payments to users ahead of any other company.
What was particularly difficult for you?
Chizuko:
Designing the service while adhering to laws and guidelines was challenging. We had to continually review and adjust our fundamental service design and business plans to meet the requirements. Being the first in Japan, the planning and development process was far from simple.
However, our determination to be the first ones in Japan was unwavering. We reorganized and restarted development, solidifying service specifications with our product team and collaborating with PayPay Bank, which has a long history as an internet-only bank. When we received the designation from the Minister of Health, Labour and Welfare on August 9, 2024, everyone’s hard work paid off.
Haniya:
Digital salary payments involve a complex scheme, requiring coordination not only within the project team but also with many external stakeholders, including PayPay Bank. As a PMO, ensuring speed and quality while coordinating and sharing information both internally and externally was challenging.
For instance, the high confidentiality of digital salary payment information sometimes necessitated keeping information from project members. We had to carefully balance maintaining member motivation with the need for confidentiality. We shared updates daily on our project Slack channel, ensuring even one-way communication delivered the latest information.
What has been the response since the rollout and what is your vision for the future?
Haniya:
Within just two weeks of receiving the designation on August 9, 2024, we received inquiries from hundreds of companies. Despite the Obon holiday period, the response following media coverage was significant, highlighting the high level of societal interest.
However, processing digital salary payments, which is not part of the existing accounting flow, could increase the burden on both employees and companies. Moving forward, we aim to enhance functionality and improve user convenience. Specifically, we plan to strengthen partnerships with HR and labor system providers to achieve seamless digital salary payments and receipts. For instance, on August 21, 2024, we announced a partnership with Obic Business Consultants – developers and sellers of core business systems like “Kanjo Bugyo.” Through such collaborations, we aim to create even more attractive services.
Chizuko:
One of the advantages of digital salary payments is providing more options. Just as the internet made information easily accessible, making daily life more convenient and expanding life choices, having more options for how money is used and received can make the money flow more freely. This respects individual values and lifestyles, such as not wanting to carry cash or reducing the hassle of managing money. Increasing options directly correlates with freedom, and we hope PayPay can contribute to this through digital salary payments.
Upholding the Day One Spirit and User-First Approach
What do you value in your work?
Chizuko:
One of PayPay’s core values is “Work for LIFE, or Work for Rice – What is your real purpose?” I have been involved with PayPay since before the app’s release, and I believe we are always in our Day One, constantly striving for challenges and growth. We aim to deliver payment and financial experiences that support users’ unique lifestyles with speed and dedication, just as we did at our founding.
Haniya:
Similarly, “Be Sincere To be Professional” from PayPay 5 senses is important to me. I respect my team members as professionals, share information as much as possible, and tailor communication to the recipient. In this project, ensuring that professional team members could work towards the goal with a clear vision was crucial. Despite constraints, we shared information daily with a large team, striving to deliver updates creatively.
What makes working at PayPay worthwhile?
Haniya:
PayPay’s user-first approach is incredibly rewarding. The diverse backgrounds of our team members all converge on the belief that the user’s voice is paramount, providing a consistent foundation. With 65 million users (as of August 2024) and vast amounts of data, PayPay allows for direct feedback and data-driven validation post-launch. This makes the challenge of improving society exciting.
Chizuko:
Creating something new is enjoyable, especially in the financial sector, where there is still room for innovation. We aim to continuously develop services with fresh ideas, like digital salary payments. Although strict rules exist to protect users, and it can be challenging, the essence of planning at PayPay is figuring out how to make services user-friendly within these rules.
Finally, do you have a message for our readers?
Haniya:
Following the organizational restructuring in September 2024, we will focus more on enhancing the functionality and convenience of digital salary payments as part of the “Digital Payroll Team.” We need more team members to make PayPay Paycheck a service that users want to adopt in their companies. While there are many challenges, those who can persevere and collaborate until the end are welcome to join us at PayPay.
Chizuko:
Those who can engage in persistent discussions, have the courage to rebuild plans if necessary, and enjoy the journey will find ample opportunities for skill enhancement at PayPay. Personally, I ensure that no team member feels isolated. We are one team climbing the same mountain, and we want to respect and support each other. We look forward to working with like-minded individuals who can join us on this journey!
Current job openings
*Job openings and employee affiliations are current as of the time of the interview.