The Leader Interview series provides a glimpse into the personalities and philosophies of the PayPay Group’s top leaders. This time, we sat down with Hiroki Kawata, Head of the Financial Promotion Division, Financial Business Headquarters.
Hiroki Kawata
Corporate Officer
Division Head, Finance Business Promotion, Finance Business Group
He entered the world of corporate giants with Usen Broad Networks, now USEN Corporation. In 2005, he joined Yahoo Japan Corporation, currently LINE Yahoo Corporation, where he held pivotal roles such as the Head of Business Promotion at the YAFUOKU Company, and also served as Consumer Business Controller and Commerce Company Controller. After an initial secondment to PayPay in 2018, he transitioned to a permanent role within PayPay by 2020. By July 2023, he rose to become an Executive Officer at PayPay Corporation, also taking on a concurrent executive role at PayPay Card, Inc.
Table of Contents
Focusing on What Only the PayPay Group Can Achieve
Can you walk us through your career journey?
After my stint at Usen Broad Networks, I joined Yahoo Japan Corporation in 2005. I have been with PayPay since its inception in 2018. Within PayPay, my responsibilities have included negotiating financial institution relationships for cost management, engaging with governmental bodies, and collaborating with entities like LINE Pay. The ethos at PayPay is decidedly user-centric, powered by the positive, solution-oriented attitude of our members. A culture of open dialogue among diverse colleagues further propels innovation something I truly appreciate.
Since October 2022, PayPay and PayPay Card have functioned as One Big Team, working seamlessly together. This shift led me to become a part of PayPay Card’s operations from July 2023, collaborating as a cohesive unit with both teams.
Could you describe the structure and mission of the Financial Promotion Division?
At PayPay, we offer financial services such as credit cards, banking, securities, and insurance via our “Mini App” feature. The Financial Business Group, overseeing these services, comprises the Financial Business Strategy Division and the Financial Promotion Division. My team is primarily tasked with fostering cooperation with PayPay Card, advancing PayPay Credit, and managing negotiations with financial institutions for balance replenishment.
Our division consists of the Financial Institutions Liaison Department, Credit Business Promotion Department, and Financial Promotion Department, with around 40 members. Our mission revolves around two major goals: First, to expand the credit business alongside PayPay Card, enhancing financial returns beyond transaction fees. Second, to optimize fund source costs, aiming to strengthen group economics. By managing costs effectively, we aim to maximize profitability and contribute to the group’s revenue growth.
Our division plays a crucial role in spreading new ventures and features concerning PayPay Card and Credit, working hand-in-hand with both internal and external partners.
In a fintech service hosting over 60 million users, what sets PayPay apart from other companies?
It boils down to what the PayPay Group alone can offer. We implemented a system in March 2024 that allows users to view PayPay Card transaction information in real-time via the app’s “Transaction History.” This functionality enabled us to launch a campaign in June of the same year, distributing PayPay scratch lottery tickets for PayPay Card transactions.
Initiatives like enabling PayPay Card (including the gold variant) integration with Apple Pay in May 2024, and making card details viewable directly on the PayPay home screen in October 2024, are user experiences only possible because PayPay and PayPay Card operate as One Big Team.
Delivering new value requires an unwavering user-first approach. Our division remains committed to refining services and conducting unprecedented initiatives, all while keeping the user’s perspective at the forefront.
With credit transactions representing 80% of Japan’s cashless market, we aim to leverage PayPay’s strengths for product development and promotional synergy, driving the group’s transaction volume further and increasing share in users’ financial habits.
Growing Even Faster than PayPay’s Own Exponential Trajectory
What has been the most challenging and unforgettable experience you have encountered at PayPay?
In May 2023, we announced the cessation of using credit cards, except for “PayPay Card” and “PayPay Card Gold” for PayPay charges, which elicited diverse feedback from users reliant on other cards and it resulted in some user dissatisfaction.
How to deliver an impeccable experience for both PayPay and PayPay Card users? This question became a continuous discussion within our team. Although the trial-and-error process had its challenges, it was simultaneously a rewarding experience as we explored various solutions together.
What principles guide you in your work, and where do you draw motivation for your job?
Speed, execution, ownership, and responsibility are key principles I hold dear. To keep up with PayPay’s rapid growth, it’s essential for individuals to outpace even that speed with personal development. Identifying and solving challenges independently and being ready to take full accountability are crucial commitments.
New challenges are embraced at PayPay, and seeking these on my own adds joy to my work. Though hurdles may arise, a user-first mindset, along with an objective examination of data, guides sound decision-making.
Could you share the unique appeal and rewards of the Financial Promotion Division?
The immense opportunity in strategizing for credit operations and fund source costs is incredibly fulfilling. Success in these vital areas can lead to significant repercussions, and consistently hitting the mark opens further opportunities for impactful contributions.
Moreover, in career terms, working within the PayPay Group offers significant visibility within Japan’s bustling cashless and fintech scene. The learning and experience gained here are definite advantages.
What qualities do people thrive on in the Financial Promotion Division, and how do you foster member growth?
Proactivity is paramount for success. The ability to self-initiate problem-solving and acting on those insights, even before directions are given, is crucial and makes for a thriving environment.
I encourage my team to embrace challenges boldly. The average success rate doesn’t change drastically, but increasing the number of challenges does. The faster you perform your duties, the more opportunities you’ll have, naturally resulting in more successes. Focus on the quality of output is essential, along with gaining varied experiences. Even if failures occur, we view them as collective learning points to fuel future challenges.
Towards Dominance in the Cashless Sector
What future accomplishments or visions are you aiming to achieve?
We aim to evolve as a fintech company, with the objective of PayPay Group becoming the No.1 choice in users’ financial experiences by maximizing market share.
The majority of the approximately 100 trillion yen cashless market annually is driven by credit cards. To dominate this arena, we need to elevate our credit card market share; there is also uncharted potential in the cash market, which we plan to harness. Within the next 2-3 years, we aim to deliver services that outshine those of competitors. With our execution-driven team, we will work together to achieve monumental, impactful outcomes.
A Message to Our Readers
If you possess a proactive approach and execution capability, the Financial Promotion Division offers a rewarding environment where you can thrive. Conversely, those who merely talk without action may find themselves outpaced. I hope to collaborate with individuals driven by ambition and ready to take decisive action.
Current job openings
*Job openings and employee affiliations are current as of the time of the interview.