Designing Accounting for Unprecedented Businesses — Making Decisions in an Agile Environment at PayPay

The Professionals series spotlights exceptional talent working across the PayPay Group. In this edition, we speak with Yumiko Takagi, a finance professional responsible for designing accounting frameworks for new business initiatives in a rapidly evolving environment. She shares her career journey, the unique challenges of working at PayPay, and how she has evolved into a finance professional who makes critical decisions in uncertain conditions.

From a “Completed System” to the Center of Change

At the bank where I started my career, accounting operated within a fully established system. Processes were predefined, and exceptions were rare. It was a stable environment where accuracy and consistency were paramount. However, over time, I began to feel a desire to deepen my professional expertise.

Frequent transfers allowed me to gain broad experience across functions, but I wasn’t in an environment where I could fully leverage my accounting background as a core specialization. I wanted to work in a role where my expertise would define my contribution. That’s when I came across PayPay. At the time, PayPay was just beginning to expand significantly into financial services. In my previous role, I had exposure to a wide range of financial businesses—cards, securities, banking, and insurance—and had also worked on the front line. I understood the overall structure of financial services, and I saw an opportunity to build on that foundation while deepening my expertise in accounting.

Another major attraction was the opportunity to join a mega-venture at an early stage of its growth. The organization was not fully built out yet—and that was precisely what made it exciting. I remember thinking, this feels like being part of a festival. Instead of joining a completed organization, I was stepping into one where the structure itself was still being shaped. An environment where my decisions could directly influence how systems and processes are built. That was ultimately what convinced me to join.

The Challenge of Making Decisions in 2–3 Weeks

What distinguishes accounting at PayPay most is the combination of speed and lack of precedent. In traditional financial institutions, system development is meticulously planned and executed according to a fixed schedule. At PayPay, however, development follows an agile approach. Assumptions can change quickly, and specifications evolve continuously. Once a business decision is made to proceed, accounting decisions may be required within just two to three weeks. What makes this even more challenging is that, at that stage, the underlying assumptions are often still evolving. Conditions may change later, requiring reassessment. Accounting is fundamentally a discipline that prioritizes accuracy. In that sense, it does not naturally align with this level of speed. Yet, we cannot afford to slow things down.

One of the most challenging areas I have worked on was the accounting treatment for PayPay Shikin Chotatsu (PayPay Funding – service details available in Japanese only). There were virtually no comparable large-scale examples in Japan, so we could not rely on precedents. In addition, even slight differences in contractual terms could lead to entirely different accounting treatments. For example, depending on how the service is structured, it could be treated similarly to a loan with interest and repayment adjustments, or more like a financial instrument requiring periodic fair value measurement. Small differences could have a significant impact on the entire accounting framework.

Moreover, accounting treatments must ultimately be implemented within systems. This meant that we had to finalize contractual terms quickly in order to define system requirements. In some cases, we reviewed accounting standards first and identified which contractual elements would affect accounting treatment, then fed that back to the business team. Accounting standards themselves are extensive, and we often had to move forward while considering multiple possible scenarios based on incomplete assumptions. Making decisions under those conditions carried a level of difficulty and responsibility I had never experienced before. That said, I don’t believe the current approach—handling each case individually—is sustainable in the long term.

Now that the company has reached a new stage of growth, I believe our role is evolving. Going forward, I want to build mechanisms where the necessary information is already structured at the service planning stage. Instead of accounting stepping in case by case, we should create a system where business decisions can be supported more efficiently and at greater speed.

Bringing an Accounting Perspective into Product Design

One particularly memorable project involved Gift vouchers. We needed to determine when the vouchers would expire and design a mechanism that would automatically generate journal entries at that point. However, the existing system did not support this. We received many questions: “Why is this necessary?” “Do we really need to go this far?”

It’s important that these requirements are understood not as “accounting preferences,” but as obligations the company must fulfill. Whenever money is involved, accounting considerations are unavoidable. Given that PayPay operates in payments and financial services, product design and accounting treatment are inherently interconnected. This includes how receivables are managed, how recognition and derecognition are defined, and how contractual terms align with accounting standards. In this sense, accounting at PayPay is not just about reporting numbers—it involves engaging directly with product design itself.

Evolving into a Decision-Making Finance Professional

In my previous role, most of my work was standardized. Now, I am expected to formulate policies and make decisions in non-standard situations. In meetings, I gather information in real time and make judgments on the spot. I am entrusted with many day-to-day decisions, and I have learned to distinguish between routine decisions and those that have broader business implications.

Another major change has been that my opinions are increasingly sought out, and my recommendations are adopted. That has been a strong source of confidence and a clear indicator of my growth.

I also used to struggle with communication. At one point, I was told, “That’s not something accounting should decide.” That comment made me reconsider how I defined my role. Now, I am more conscious of where accounting’s responsibility ends and where other teams’ expertise begins. I approach discussions with that distinction in mind. I have moved from being someone who executes predefined processes to someone who makes decisions in dynamic environments. The level of difficulty has increased, but so has my perspective as a professional.

What Kind of People Thrive Here?

I believe people who can continue learning are well suited for accounting at PayPay. Reading accounting materials and continuously trying to understand what “good” looks like is essential. More importantly, it is important to enjoy shaping things that are not yet defined. Rather than saying, “Don’t bring me something that isn’t decided,” I value people who can help structure it and move it forward.

Operating in an agile environment while maintaining proper controls. That, to me, is what defines a finance professional at PayPay.

*Information such as job openings and employee affiliations is accurate as of the time of the interview.