It's been a year since PayPal
announced a strategic alliance with Japan's leading Internet
company, Softbank, to be the first to bring a mobile payment system
to small businesses in Japan.
More than 2,700 Softbank stores now
prominently display the PayPal Here reader and thousands of small businesses have
Via SoftBank retail shops and
through SoftBank's business sales network across Japan, we can now
reach 80% of the Japanese small businesses that still do not accept
credit card transactions today.
It would be hard for even a globally
recognized brand such as PayPal to succeed going it alone in the
Our experience in the last year has
shown us that partnering with a well established brand such as
Softbank was the right approach to getting Japanese small
businesses to embrace new ways to get paid.
So who in Japan is using it? The
answer is anyone who wants to grow their business fast, but we are
seeing a lot of traction in coffee shops and restaurants in
particular, as well as beauty service providers such as nail
These market segments have embraced
PayPal Here because they've been cash-based businesses until now
and have been losing sales because they can't accept credit cards.
A lot of small businesses are seeing their customers spend more
when they are not limited to the cash they have on hand in their
stores. But don't just take our word for it. Here's what several
Japanese small business owners had to say about how PayPal Here is
helping their business thrive.
"After we started using PayPal Here at exhibitions and
showrooms, 90% of our sales came through credit card transactions
via PayPal Here. When customers find out that they can use their
credit card, they feel more comfortable when choosing and
purchasing products. As a result, both unit sales price and total
sales volume have increased," commented Mr. Hiroyuki Miyazaki, CEO
of Aquarylis, a jewelry shop that sells high-quality, hand-crafted
stone jewelry at exhibitions in Tokyo and Osaka, as well as through
face-to-face sales opportunities.
“PayPal Here has no monthly
charge and an easy transaction process, so we are happy to recommend our
customers to pay via credit card. Also, our sales team comments that PayPal
Here enables credit card payments at sales visits to yoyo competitions and
exhibition events. Moreover, sales from our online and physical stores can be
completed through PayPal, an easier way to manage overall sales transactions
for our business,” commented Mr. Masahiro Noma, CEO of YoYo Company which has a
shop called Rewind located in Aichi prefecture, selling a range of popular
yoyos including professional models for world competitions.
"After introducing PayPal Here, it is a more convenient way to
pay for customers and we are able to grow our sales by offering
more payment choices to our customers. Although the transaction fee
cost is 5% of sales, the amount of lost business by not offering
credit card acceptance is even higher," commented Mr. Daisuke
Tanaka, CEO of Uniginal Ltd., managing company of Milton Coffee
Roastery, a cafe located in South Yamaguchi prefecture.
"Three weeks after we started, we saw that payments via PayPal
Here were already 10%. More importantly, customers would purchase
additional products because they can pay by credit cards," said
Thomas Bertrand, owner of Bento&Co, which provides stylishly
designed Japanese bento boxes and kitchen utilities in a physical
shop in Kyoto.