Balancing Convenience, Safety and Security: One-Year Allowance Campaign!

Dive into the behind-the-scenes of PayPay Group’s major projects with the Project Story series. This series shines a spotlight on key projects, exploring the challenges faced and the dedication of each team member. Through interviews with those involved, we deliver authentic stories from the field.

This time, we look into PayPay’s new initiative, Increased Allowances for One Year (Allowance Campaign), with insights from the team members driving the project towards its release.

Challenges Abound in Promoting Cashless Payments Among Young People

Could you describe the overview of the Allowance Campaign?

Akira:
The Allowance Campaign allows parents to send money to their children (aged 12-18) through PayPay. Over one year, recipients earn up to 10% PayPay Points monthly on the amount received (Only users who have completed their identity verification (eKYC) can participate.). This campaign takes traditional cash-based allowances onto PayPay, providing up to 10% PayPay Points, which we proudly consider an extremely generous offer.

Why focus the campaign on allowance?

Akira:
PayPay’s registered 68 million users (as of March 2025) is, based on our research, roughly two-thirds of all smartphone users in Japan. Having said that, looking at the registration rate among domestic smartphone holders, the registration of users up to age 18 were slightly lower compared to adults. Because of this, we now have a strong desire for young users to experience the convenience and safety of PayPay, so we crafted this campaign to encourage them to use our app.

We also recognized that if they become fans of PayPay during their student years, they’ll likely continue using PayPay Group services in the future. We took inspiration from the PayPay Paycheck feature for adults and gave shape to the idea of a promotion via allowances, something like a salary for young people, to trigger further engagement with PayPay.

Yohana:
In fact, this trend of a low adoption rate among the youth isn’t limited to PayPay but extends across the entire cashless industry. This is probably due to parental concerns. Market research from other companies indicates that parents worry about fraud and their children being too young to use cashless payments. Many of these concerns remain unaddressed.

Globally, there are tighter regulations on the youth’s use of web services. So in offering the campaign, it was necessary to establish a framework with which young users and parents feel secure, eliminating worries about potential risks or troubles. This involved numerous considerations, such as leveraging PayPay’s identity verification systems, crafting fraud prevention measures for young users, and reworking our promotional language. These initiatives were crucial for a safe and smooth campaign launch.

Striving for Safety, Security, and Convenience, Achieving a Significant Increase in Transaction Volume

Could you share the journey leading to the campaign release?

Akira:
Designing the campaign from scratch involved determining the appropriate user incentives and defining the target age range. Notably, the campaign was set to run for a lengthy one year. Recognizing that young people tend to make fewer purchases compared to adults, we prepared a long-term campaign to maximize engagement and perceived benefits even from limited shopping opportunities.

Considering that this campaign was the first in PayPay, we wanted to validate its impact through localized test promotions before launching nationwide. Conducted across three regions, these tests showed no major changes in usage—only an added bonus of transaction volume quadrupling. With no observed fraudulent activities or negative publicity, we decided to go national.

Hiromi:
For nationwide deployment, we needed to develop new systems and redesign the UI. Initially, during the localized test launches, we manually reviewed transaction histories to find recipients eligible for the extra points. However, since we were expecting a substantial increase in traffic after the nationwide release, manually checking users was unsustainable. Plus, for the sake of convenience, it was vital to create a system which would allow users to immediately receive the points, as it would enable users to spend them immediately.

What were the most challenging aspects?

Akira:
The primary challenge was venturing into an unprecedented, yearlong campaign targeting young users. Traditionally, PayPay hadn’t orchestrated campaigns specifically for young people nor for P2P transactions. The difficulty of gauging user responses, coupled with the substantial costs of a long-term campaign, made this a daring decision.

Nevertheless, considering PayPay’s potential growth opportunities, we decided that becoming a beloved service among the youth was crucial to sustain our growth trajectory. Regarding costs, we used metrics like customer lifetime value (CLV) to validate the expenses, while persistently engaging in dialogues with internal stakeholders to make the project come to fruition.

Hiromi:
Developing new systems posed significant hurdles. Despite designing ideal UIs and systems with Akira, feedback from the developers often highlighted implementation difficulties. While understanding the limitations in development bandwidth and personnel, we remained focused on delivering the best campaign experience to users, and remained adamant to not compromise quality.

In collaborating closely with developers, we established a priority list and identified viable compromises. By maintaining open, two-way dialogue and holding meetings every week, we were able to share and vocalize our goal of creating a user-focused service together. We succeeded in launching an almost ideal campaign. Also, features that couldn’t be included initially are scheduled for implementation in future updates.

Yohana:
We were extra cautious with our campaign wording since we were targeting young people. We wanted to avoid phrases suggesting that all minors are eligible, such as stating that eligible users were “all minors.” Since PayPay requires parental consent to ensure that minors are protected, any wording implying universal eligibility without consent risked misinterpretation.

Because we wanted to support campaigns that would extend PayPay’s reach, we focused on solutions ensuring the safe use of our app by young users. This approach included presenting alternatives whenever revisions were necessary, rigorously evaluating possibilities for safe and secure implementations. In campaign wording, I suggested to express PayPay’s robust identity verification and adherence to youth protection regulations on our website, which Akira and Hiromi supported.

How were the reviews post-release and what is the future outlook?

Akira:
Although nationwide deployment just started, we already see results exceeding expectations. Qualitatively speaking, some web media covered and reported this initiative, which is a testament to the initial success of the campaign. Nonetheless, our ultimate goal is to make giving and receiving allowances through PayPay normal. Since there are various reasons for using cash across all demographics, we aim to enhance campaigns for a broader user base to adopt our services.

Yohana:
Post-launch, the campaign remains trouble-free, so it is reassuring that we were able to provide a secure and safe experience to users. Expanding PayPay’s younger user base relies not only on convenience but also on parental assurance that the service is safe for their children. We are committed to combining safety, security, and convenience in our services, so I want to contribute from a legal standpoint to creating a service that is accepted by both parents and young users.

Connecting New Users to PayPay Through Promotions

What principles do you prioritize in your work?

Akira:
I treasure the value “Speed is our bet on the market” among PayPay’s PayPay 5 senses. With numerous cashless service providers executing grand promotions, ensuring that PayPay stands out isn’t merely about product integrity. It involves delivering high-quality services efficiently. Through initiatives like the Allowance Campaign, we as PayPay are aiming to swiftly implement innovative campaigns, ensuring a natural touch point for users.

Hiromi:
I like “Believes in our product & team.” In promotion, I’m often involved in planning and often send requests to the product team for developing new features or enhancements. At PayPay, experts from both product and marketing departments collaborate to provide services that meet user demands.

Yohana:
For me, it is “Ego is not welcome, Communication is necessary.” Crafting a confidently presented PayPay campaign requires thorough communication between teams in the trenches and legal, risk, and compliance departments. I ask questions like “why a year?” or “why is the target ages 12-18?” after which we move onto discussions within the entire risk and compliance division, seeking the best solutions.

A message for the readers please!

Akira:
Our goal is for every smartphone owner to use PayPay. Although two-thirds of users have already registered with our app, I believe it will be a rather difficult challenge to approach the remainder. Engaging users who initially hesitate to use PayPay and reshaping their view on the app through promotions can profoundly contribute to your growth as a marketer.

Hiromi:
Individuals eager to tackle new challenges will thrive at PayPay. Often facing circumstances without precedent, like campaigns targeting youth or deploying P2P promotions, you can enjoy the process of debating ideas while iterating towards a goal as a team. If you like to work like that, this is the place for you.

Yohana:
The allure of PayPay lies in our environment where you get to work on new challenges rapidly. Even within our legal team, we engage in work efficiency initiatives utilizing AI, consistently discussing new ideas on a weekly basis. We welcome individuals willing to transcend functional boundaries, prioritizing users, and balancing security, convenience, and safety in delivering services.

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