First, Shingo Ogasawara, Corporate Officer, Head of Management Planning Department of Z Financial Corporation explained what Z Financial aspires to be, and the policies of PayPay-branded financial businesses to materialize that desired state.

There are two aspects to the strategy. First is to reinforce the user base through ID linkage and integration of the point incentives, leveraging the strengths of the Group encompassing three services, LINE, Yahoo! JAPAN and PayPay, which all have massive user contact points. Second is to aim to further enlarge both B2C and B2B ecosystems using the unparalleled user base.

Ogasawara likened the strategy of the PayPay-branded businesses to a three-tier structure and explained the current situation: "PayPay's business started off as a payment fee business, which is the first tier. Now, it is gradually expanding its business to the second tier by providing services to merchants, and to the third tier through financial services." He explained that the Z Holdings Group aspires to create a third revenue pillar next to Media and Commerce, by accelerating the monetization of the second and third tiers.

Ogasawara explained the outlook of PayPay, which currently has 55 million registered users: "By unifying the brand and promoting service linkage, we will create a structure that facilitates users to accumulate PayPay Points. This will enhance user engagement, which in turn, will further enlarge PayPay's user base. We want to create this kind of virtuous cycle."

Z Financial aspires to liberate finance by removing various restrictions through the use of data and AI. By creating freedom of choice through the use of data and AI, Z Financial aims to expand financial services to those who have been unable to enjoy appropriate financial services in the past, i.e., to achieve financial inclusion. Z Financial will solve various issues related to money for all people, and ultimately a society where all people can take on challenges numerous times. This is the kind of future Z Financial envisions.

Ogasawara then reflected on Z Financial's position. Z Financial was established in 2019, a year after the PayPay service was launched. Z Financial has the function of providing governance over the Z Holdings Group's financial companies, which undertake many initiatives under the same Group strategy. Therefore, Z Financial also has a horizontal function of coordinating the Group companies. There are many collaborations among the Group companies, such as between PayPay and PayPay Bank, PayPay and PayPay Card, or PayPay and PayPay Insurance. Thus, Z Financial acts as a hub for the Group companies which facilitates the collaborations and promotes the PayPay brand in the financial services by creating the overall Group strategy and launching projects.

Z Financial explains that certain effects were observed by unifying the brands of the Group's financial services to the PayPay brand. In banking, as a result of the renaming of The Japan Net Bank to PayPay Bank, applications to open personal accounts increased by approximately 6.5 times, and applications for personal loans increased by around three times. Ogasawara analyzes the reason for this increase: "The PayPay app is linked to mini apps of securities, insurance, and banking. When the mini app is displayed as PayPay Bank instead of The Japan Net Bank, users are more likely to feel that they are using a service related to PayPay." Users may have found it easier to use the financial services because PayPay has become the single entrance to them.

Z Financial also embarked on developing numerous seamless financial services, such as creating a smooth path for users who apply for PayPay Cards to also open PayPay Bank accounts; launching PayPay Atobarai, a deferred payment service linked with the PayPay app; and releasing a mini app, "PayPay Insurance (1 Day Insurance)," which enables users to complete all insurance-related actions from purchase, premium payment to insurance claim in the PayPay app. As a result of these initiatives, various KPIs have increased steadily in two years: the number of insurance contracts has increased 10 times, number of bank accounts 1.3 times, and loan balance 4 times.

On the future of the company, Ogasawara explained: "We would like to generate even more synergies between PayPay and various financial services. We hope you will look forward to what extent and how the ecosystem will expand around PayPay."

Following Ogasawara's presentation, the public relations of each financial company explained the outline and strategies of their companies.

PayPay Corporation ("PayPay") launched its service in October 2018, aspiring to create a super app that enables users to complete all daily actions from a single smartphone. The number of registered users has exceeded 55 million as of February 2023.

According to a survey published by data.ai on January 12, 2023^*1, PayPay ranked No. 1 among the apps provided by Japanese private companies in the 2022 app download ranking. PayPay boasts an unparalleled No.1 position in code payment market share in Japan^*2--in FY2021, PayPay's market share was approximately 67% in payment GMV, and approximately 65% in the number of payments. Furthermore, PayPay is a runaway leader^*2 in the number of remittances using smartphone payment in 2021, recording a market share of 87%.

There are three reasons why PayPay could expand its market share to this extent.

First is the intuitive UI and UX of the PayPay app. Constantly in pursuit of usability, the app is updated almost every week. The second reason is that there are many places where PayPay can be used. It can be used at any location, whether it is a physical store or an online service. Popular online services such as Amazon and Netflix can also be paid for with PayPay. The third reason is the many good deals that PayPay offers where users can accumulate large amounts of PayPay Points through various campaigns and by using the Group's services.

PayPay will continue to evolve its services so that all aspects of daily life can be completed on the PayPay app.

PayPay Card Corporation acquired the credit card business from Yahoo Japan Corporation and became a wholly owned subsidiary of PayPay Corporation in October 2022. This organizational restructuring enabling the unified operation of the two companies, was implemented so that the PayPay brand will always be present in payments - i.e., to promote the use of PayPay Card for payments at merchants that only accept credit cards and not PayPay payments.

PayPay Atobarai (deferred payment) was launched in February 2022, as a measure to generate synergies between PayPay and PayPay Card. By linking PayPay Card with the PayPay app, users can make lump sum payments of the amount used, in the following month, without topping up in advance.

Additionally, PayPay Card Gold was newly introduced in November 2022. A maximum of 2% PayPay Points are granted if a user selects PayPay Atobarai linked with a PayPay Card Gold as a payment method. (PayPay Card Gold's special 0.5% benefit is added on top of the points granted for PayPay STEP.)

PayPay Point has three strengths: No expiration date for the Points granted, easy accumulation of Points, and the many locations in which the Points can be used. The Group will reinforce collaborations so that it is easier for users to earn even more Points.

PayPay Insurance offers two types of insurance services: PayPay's mini app, "PayPay Insurance," which can be subscribed to on the PayPay app; and "scenario insurance," which can be subscribed to on Yahoo! JAPAN services when shopping or booking a trip.

Currently, "PayPay Insurance (1day insurance)" offers ten types of products. It is distinguished by its easy procedure for subscribing to the policy and the fact that users can earn points by doing so. The premium can be paid with PayPay Balance and the insurance can be claimed from the app (some exceptions apply).

PayPay Insurance focuses on planning insurance products that respond to the needs of the society and users, such as the first-in-the-industry product, "Heat Stroke Syndrome Sympathy Payout," the first-in-Japan insurance product, "Influenza Sympathy Payout," and "Safe Drive," which offers the lowest-cost plan in the industry.

In April 2021, PayPay Bank was renamed from The Japan Net Bank. As a result, many PayPay and other users opened new accounts and the number of accounts exceeded 6 million in FY2021.

Payment services, which are offered in various forms, have also recorded significant results. The number of payments increased 1.6 times in two years and continues to record a historic high. The number of applications for personal loans has surged 2.8 times in two years since the renaming. Similarly, the deposit balance has increased more than JPY500.0 billion in two years.

In August 2022, the bank launched a mini app "PayPay Bank" that enables users to access their transaction record stress-free and make remittances from the PayPay app in one tap, demonstrating the bank's aspiration to become the most useful and valuable bank for PayPay users, both for individuals and corporations.

In the future, PayPay Bank aims to be used by as many PayPay users as possible and will provide stress-free and seamless user experiences. In addition, it will refine its services by fulfilling users' needs for products such as personal loans, corporate loans, and foreign currency deposits.

PayPay Securities provides three products.

The users of "Point Management," a service provided by PayPay Securities' wholly owned subsidiary, PPSC Investment Service, exceeded 8 million in December 2022. In the last two months, the number increased by 1 million, growing at a rapid pace. The ease with which users can get started - without opening an account or agreeing to terms and conditions - has been favorably received by users.

"PayPay Invest," available in nine ETFs and investment trusts, is a service that enables asset management using PayPay Money. The service is simple to access from the top screen of the PayPay app and can be started smoothly. Investment trusts can be accumulated from as little as JPY100, making it easy to use.

About 300 Japanese and U.S. stocks are currently available in the "PayPay Securities app." Its uniqueness lies in the fact that users can purchase shares of well-known Japanese and U.S. companies from as little as JPY1,000. This service ranked 1^st for two consecutive years in the smartphone securities ranking announced in 2022-2023 Oricon Customer Satisfaction ®︎ survey, recognized for its ability to provide genuine asset management despite its ease of use.

Under its mission of updating asset management, PayPay Securities will continue to create a future where everyone can live a better life without financial worries.

PayPay Asset Management is the only asset management company under the PayPay brand. The company creates mutual funds and invests the customers' funds in capital markets such as the stock and bond markets and receives trust fees.

As of the end of December 2022, the amount of assets entrusted for management from customers reached JPY248.7 billion. Under the slogan, "Delivering the joy of having money work for you," the Company offers four products in the PayPay Investment Trust Index Series, which has one of the lowest fee structures in the industry.

PayPay Asset Management is a rare company in the industry that has an Internet company (Z Financial) and a traditional asset management company (Asset Management One) as shareholders. The company will enter a stage of greater growth by creating synergies between these two companies.

In addition, as the only asset management company under the PayPay brand, PayPay Asset Management will continue to cooperate with the PayPay Group companies to create and offer asset management products that meet the needs of the customers.