Rohan Mahadevan, VP of Asia Pacific

 


 

20130522_japan_post.jpgIt'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 embraced it.

 

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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 Japanese market.

 

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 salons.

 

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. 

 

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"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.

 

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 “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.

 

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"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.

 

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"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.

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