How does PayPay work for online payments?
On a smartphone, the shopper selects PayPay at checkout and the PayPay app opens. They tap to pay, and after a short pause they return to the shop automatically. On a computer, the checkout shows a QR code that the shopper scans with the PayPay app. Shoppers can also log in through a browser with their phone number, password and a 4-digit code sent by SMS. PayPay warns that closing the page before returning to the shop can make the purchase fail, and private browsing modes are not supported.
Online payments can be funded from the PayPay balance, PayPay points or PayPay Credit, although PayPay notes that some stores do not accept PayPay Credit. Some stores use a “payment accepted” step: the shopper’s balance is reserved when they pay, and the payment completes once the store is ready, for example when the goods ship.
Stripe’s documentation adds the technical limits. PayPay payments run in JPY from JPY 50 to JPY 1,000,000. The PayPay authorisation expires 5 minutes after the redirect, and Stripe expires the attempt after an hour. Recurring payments are not supported. Refunds, full or partial, can be submitted for up to 365 days, complete instantly and go back to the shopper’s PayPay balance or linked payment method.
Where and how do shoppers use PayPay?
In Japan. PayPay says it reached 75 million registered users on 9 August 2026, about 3 in 4 domestic smartphone users. Its payments grew 19% to 8.88 billion in 2025, which PayPay calculates as more than 20% of Japan’s 43.5 billion cashless payments across cards, QR code payments, e-money and debit cards. More than 43 million users had completed identity verification by July 2026.
Code payments are a growing part of Japanese spending. The Ministry of Economy, Trade and Industry put the cashless share of consumer spending at 58.0% in 2025. Within that, code payments such as PayPay made up 10.2%, or JPY 16.6 trillion, against 82.7% for credit cards. METI’s e-commerce survey valued Japan’s business to consumer e-commerce market at JPY 26.1 trillion in 2024.
PayPay is a domestic wallet. Stripe lists Japan as both the business and customer location for PayPay. Alipay+ lists PayPay as a partner for in-store QR payments only, not for online checkout.
What rules and costs should merchants know?
Merchants apply and are reviewed. PayPay lets a business apply directly through PayPay for Developers or through a payment service provider or shopping cart platform. A direct application takes about two weeks to a month to review, plus about five business days to go live. PayPay says business to consumer sales, including intangible goods, can be approved, while donations, fundraising and tips are among the excluded uses. Stripe prohibits PayPay for cryptocurrency exchanges and wallets.
Fees are published for direct contracts. PayPay charges no fixed or running fees for its online SDK, only a payment fee of 3.8% for physical goods and 10% for digital content. Payment service providers set their own prices. Direct merchants are paid once a month at month end.
Use the online integration, not a shop QR code. PayPay says using an in-store QR code for online sales breaks its terms.
There are no chargebacks. Stripe says shoppers authenticate in the PayPay app, so PayPay does not use the standard dispute process and funds are not withdrawn for disputes. A shopper who contacts PayPay may be sent back to the merchant for a refund.
Japanese mail order rules apply to the shop. The Consumer Affairs Agency’s guide to the Specified Commercial Transactions Act lists what an online shop must display, including prices and shipping costs, when and how payment is made, delivery timing, return conditions and the seller’s name, address and phone number. Stripe asks PayPay merchants to publish this page.
How would Omno handle PayPay?
- One checkout: PayPay would appear in the Omno hosted checkout next to cards, konbini, other local methods and crypto, opening the PayPay app on mobile or showing a QR code on desktop. Merchants with their own payment screens would use Direct Links on their own buttons.
- Routing rules: The merchant would set rules that send JPY payments from shoppers in Japan to a connected provider that supports PayPay. Omno connects through those providers; it is not an acquirer and does not hold funds.
- Cascading: In the hosted checkout, if that provider is unavailable or rejects the request before the shopper approves, the payment would move to the next provider in the rule until one accepts.
- Status: The order would stay pending until the shopper approves, and the final result would reach the merchant by webhook.
What should merchants plan for?
Check your route into Japan. Stripe offers PayPay only to businesses in Japan, so a merchant elsewhere needs a provider that can contract with PayPay for it.
Plan for one-off payments. PayPay does not support recurring payments through Stripe, so subscriptions need a card or another method.
Allow time for approval. PayPay reviews each merchant, and a direct application can take up to about a month, plus about five business days, before going live.
Publish the required shop information. Japanese law requires a full set of seller and order terms on the site, and providers check for it.