PayPay and Binance Japan join forces to promote digital finance in Japan
1. Key information
PayPay (a company under the SoftBank Group, with over 70 million users) has purchased 40% of Binance Japan.
Both parties cooperate to expand access to Web3 and digital assets for everyday users in Japan.
2. Cooperation objectives
Combining PayPay's extensive user network and robust payment infrastructure with Binance's advanced blockchain technology.
Aiming to build a seamless digital financial ecosystem that connects traditional payments and digital assets.
3. Initial applications
Binance Japan users can buy crypto using PayPay Money and withdraw funds directly to their PayPay wallets.
This service makes transactions – payments – money transfers within the PayPay ecosystem faster, more convenient, and safer.
4. Statements from both parties
PayPay Representative: We want to provide convenience and security for Binance users while promoting the development of digital financial infrastructure in Japan.
Binance Japan Representative: This alliance is a significant step for Web3 in Japan, making it easier for people to access digital assets.
5. Overall significance
This is an important milestone in Japan's transition to the Web3 era.
The combination of cashless payments and blockchain promises to create a comprehensive digital finance system, where Web3 becomes part of daily life.
👉 What is the current state of the digital currency market in Japan?
🔸 The number of crypto users in Japan as of May 2025 is approximately 12.41 million — accounting for about 15% of adults.
🔸 Domestic spot trading volume has surged, reaching approximately 2.06 trillion yen (~14 billion USD), an increase of ~82% compared to the previous year.
🔸 Among the tokens traded, Bitcoin occupies the largest share (~70%), followed by Ethereum (~14%), and XRP is emerging strongly, at times surpassing ETH in popularity in some markets.
The Japanese government and the regulatory agency (FSA) are actively working to establish clearer laws for crypto, preparing to classify some tokens as financial products to be subject to securities/financial market laws.
🔸 Proposal to reduce taxes on profits from crypto: from the current “mixed income/multiple levels” tax rate of up to ~55% down to ~20% for profits from crypto.
🔸 The PayPay – Binance alliance will boost liquidity & access. Direct withdrawals to PayPay wallets will reduce transaction friction, making crypto more accessible to average users.
🔸 Some major companies in Japan have begun to hold Bitcoin or Ethereum as “reserve assets” or use them as a hedge against high inflation and low real interest rates.
