“PayPay to Abolish Visa/Mastercard Payments: Negative Reactions on SNS and Confusion Over Disadvantageous Changes”

“ITmedia Mobile Weekly Top 10” introduces the top 10 articles by tallying the number of article accesses on ITmedia Mobile in a week. This time, we have summarized and summarized the 7 days from April 27, 2023 to May 3, 2023.

The most accessed article during this period was an article about PayPay’s service changes scheduled to be implemented on August 1st.

The summary of the service revision that PayPay is about to do is summarized as follows.

• Abolition of payments using Visa/Mastercard brand cards (excluding PayPay cards)
• Introduction of fee for PayPay balance charge using “Softbank Collective Payment” and “Y!mobile Collective Payment” (only once a month free)

Both revisions are “disadvantageous changes” for existing users. However, there are many negative reactions on SNS, coupled with the fact that the release does not specifically explain the “reason” for the disadvantageous changes.

Regarding the abolition of Visa / Mastercard brand card payments, probablyThe burden of merchant fees has increasedI think it’s a big deal.

PayPay basically sets the merchant fee for direct transactions to 1.98%. For example, if a PayPay user makes a payment of 1,000 yen at a merchant, a fee of 19.8 yen will be automatically deducted. This is one of the “valuable” sources of revenue for PayPay.

On the other hand, if you use PayPay for credit card payment, PayPay will pay a fee to the acquirer (the card company in charge of payment).

In general, card payment fees are determined by the card acquirer’s examination, so the fee rate varies depending on the store (company) even in the same industry. In the case of PayPay, we can expect a certain amount of payment volume, and we have a “PayPay card” that is also an acquirer under our umbrella, so we think that payment fees can be reduced to some extent.

Card payment fees generally include “interchange fees” (brand usage fees and payment system fees between card companies) for payment brands (Visa and Mastercard).Interestingly, there is a “standard rate” for commissions for payment brands according to the type of business of the merchant.In the case of Visa and Mastercard, the rates differ depending on the card class even in the same industry.It seems that.

This is a bit off topic, but considering the interchange fee, if payment is made via PayPay with a Visa/Mastercard brand card of another company,PayPay is likely to be in the redThere is no doubt about that. To put it a little rough,A service that runs a deficitIt is appropriate to assume that

It is not impossible to think that “if one service is in the red, another service should be in the black”. However, from the perspective of operating a company or store normally, it is not necessarily a good thing to “compensate” for the losses of the deficit department with the profit department. Setting aside the fact that the deficit department is indispensable for the existence of the company and the store, if it is not so, it is only natural that it will be subject to review someday.

Probably, PayPay was able to establish market superiority in code payments,There are few users who use card payment (≒the impact of abolition will be minor and profits can be improved)That’s why I decided to revise this time.

However, from the user’s point of view, again, “Disadvantageous changeThere is no doubt that it is. Couldn’t you have explained the reason a little more politely…?