Maximizing Data Value for Group-Wide Utilization: PayPay Group’s Data Strategy, as Told by the CDO

The PayPay Leader Interview series showcases the personalities and perspectives of PayPay Group’s top executives. In this installment, we had the pleasure of speaking with Yosuke Tsunoda, CDO (Chief Data Officer) of PayPay Group, who is at the forefront of data utilization.

Our Mission is to Maximize the Value Creation Potential of Data

What are the missions of the CDO?

At PayPay, I am primarily responsible for establishing, managing, and overseeing the personal information protection framework. Yet, the CDO role extends beyond just defense. I also consider it my duty to promote data governance and accelerate data utilization across the entire PayPay Group. Specifically, while prioritizing the enhancement of our internal management system, including optimizing personal information application processes, promoting company-wide risk assessments related to personal information, and structuring data governance for AI utilization and privacy protection, I have recently been focusing on data utilization.

Balancing data protection and utilization, which can sometimes be conflicting objectives, is challenging. However, to leverage the vast volume of data held not only by PayPay, with its 69 million users (as of May 2025), but also by other group companies, we have set “maximizing the value creation potential of data” as the mission for the Data Strategy Department starting in Fiscal Year 2025.

I am convinced that by combining the payment and merchant data held by PayPay with credit information from PayPay Card and Credit Engine, and financial asset information from PayPay Securities and PayPay Bank, we can become “the company with the most comprehensive understanding of users’ financial situations in Japan.” By utilizing this diverse range of data while ensuring user trust, we will accurately launch services and promotions that users desire, thereby making their daily lives more convenient.

Could you tell us about your career history?

My passion for programming and PC games led me to join a game company as a programmer. Following that, I worked at an SIer before joining Netrust (absorbed by LY Corporation in February 2024), a former subsidiary of Yahoo JAPAN, where I was involved in system development. I later transferred to Yahoo JAPAN. My desire to support PayPay immediately after its launch, while I was still at Yahoo JAPAN, was the driving force behind my decision to join. This led me to apply for an internal open recruitment.

Upon joining PayPay, I experienced an intense culture that prioritized service launch and growth above all else. It’s still remarkable that the PayPay service itself launched in just over half a year. Witnessing the subsequent campaigns and various new feature additions, I felt that this company was relentlessly dedicated to one goal: delivering the best possible service to users at the fastest speed.

To Leverage our Vast Data Holdings, We Aim to Achieve Seamless Data Collaboration within the Group

Could you tell us about the evolution of your data strategy design framework?

When I first joined, the Legal Department handled personal information protection, and there was no dedicated organization for data strategy. As the service expanded, PayPay required the establishment of a sophisticated data protection framework. Thus, in April 2021, I launched the CDO Office (now the Data Strategy Department) with Terada, who was then the CDO (and is now CCO/CRO/DPO).

Prior to this, I had no experience or formal training in personal information protection or data governance. However, considering the vision that the CDO and CDO Office would not only establish an effective data protection framework but also promote data utilization in the future, I was approached due to my background as an engineer working with systems and data. In the CDO Office, we collaborated extensively with legal team members and lawyers to build the foundational data protection framework, and in December 2022, we obtained CBPR certification. Once data protection reached a certain level of maturity, the focus shifted to “now embarking on data utilization,” and I was appointed CDO to lead the CDO Office.

What challenges do you face regarding data utilization?

For PayPay Group to continue its rapid growth, it is essential to leverage our vast data holdings and maximize group synergy. Of course, each service development team is working, but I believe there is still significant room for growth through data utilization.

On the other hand, data collaboration between group companies presents numerous challenges. To create innovative services ahead of competitors in a rapidly evolving market, agile research and analysis leveraging the group’s mobility are indispensable. However, when it comes to actual data sharing, various verification processes must be completed, including personal information protection, compliance with various industry laws, and privacy impact assessments, which can significantly prolong the realization timeframe. While all these steps are necessary and cannot be skipped, I believe that the verification process absolutely needs improvement to enable efficient and appropriate review across the entire group.

What initiatives are you undertaking to address these challenges?

First and foremost, I believe it’s crucial to foster a culture and widespread awareness throughout the group that “we will utilize group data to deliver the best services to our users.”

Group companies such as PayPay Card, PayPay Bank, and PayPay Securities were separate entities, each with their own unique cultures, histories, and corresponding data policies and processes. While these should be respected, maintaining them as they are would limit the creation of group-wide synergy. We must evolve our policies and processes without compromising the level of data and privacy protection. This is not an easy undertaking, and to achieve this, all members need to share the culture and awareness of utilizing group data. We are currently in active discussions with each company about what needs to change and how.

In Balancing Offense and Defense, I Consider the Other Party’s Perspective

What is the appeal of being involved in data strategy at PayPay Group?

Firstly, it’s the opportunity to take on the challenge of leveraging the immense potential of our vast data volume. By thoroughly considering “how to make data utilization smoother” and “what challenges exist in data utilization,” and then developing fundamental solutions that address frontline needs, we can foster unprecedented user experiences by harnessing inter-group synergy.

Furthermore, the high data literacy of our members and management team reflects the significant expectations and enthusiasm for data utilization. Data professionals are embedded in every division, regardless of their primary domain, and everyone in the company has access to the analytics infrastructure to analyze data. While this means a greater sense of responsibility to avoid incomplete measures given the team’s data expertise, the work is incredibly fulfilling as we strive to meet these expectations.

What do you value in your work?

I value “being correct.” Sometimes, when difficult situations arise, I might wish I could just “stay silent.” However, as someone entrusted with the defense of the PayPay Group, turning a blind eye to problems is unacceptable. When faced with challenging circumstances, I make it a point to listen to my inner voice and reconfirm that, “it is my responsibility as CDO to lead the data domain of the PayPay Group” and “if I cannot demonstrate leadership, I have no reason to exist.” I constantly strive to remember my fundamental duty.

Moreover, because I’m in a department responsible for both offense and defense, I’m always mindful of maintaining balance. In my work, I thoroughly consider what the other party is thinking and whether my own position is balanced. Putting myself in others’ shoes is an essential element for me as a CDO.

We’re Aiming for Becoming “The World’s Most User-Savvy Company”

What is your vision for the future?

As CDO, my ultimate goal is for PayPay to become “the world’s most user-savvy company,” not just in finance but across all domains. While we are still exploring concrete means to achieve this “world’s most user-savvy” status, I believe that the path forward will become clearer as we pursue our immediate goal of becoming the best in Japan within the financial sector.

Finally, a message for our readers

At PayPay, individuals with clear convictions about “I want to realize something” tend to thrive. The data governance domain, whose definition is not yet widely understood, is still a field where few people hold an overarching ideal. However, I would love to work with individuals who, even in specific areas, possess clear convictions—such as “this is how data collection flows should be” or “I want to make this a company that handles data in this way”—while also demonstrating the flexibility to address challenges by considering colleagues’ opinions and prevailing circumstances.

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