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SoftBank Group Corp. Message Board

  • hanako808 hanako808 Aug 20, 2012 9:59 PM Flag

    Softbank + Paypal (Part 3)

    A PayPal account holder can register his or her facial image in advance on their personal profile and then settle a payment at a shop that has a PayPal Here system in operation without even physically using their card, Kitano said.

    Also, by using a smartphone app, a shopper can search for a vendor who is using the PayPal Here system and notify them that they have a PayPal account.

    The vendor, using their own smartphone connected to the PayPal Here system, can confirm the identity of the shopper visually on the screen with the client's face and name and accept the payment there and then without checking their credit card.

    This way, people can use their credit cards even for just buying something like a single cup of coffee, said Kitano.

    "Paying by cash has of course some merits, but it can be quite inconvenient in some cases because cash is bulky," Kitano said.

    He said changing Japan's cash-settlement culture will not be an easy task, but pointed out how many people living in urban areas have switched from paying cash to prepaid electronic money in the form of cards or in their cellphones to buy such items as train tickets, lunches or purchases at convenience stores.

    "In the past, everyone purchased tickets with cash, but many people don't do that anymore. People won't go back to that old custom (of using cash) because they now find it too inconvenient," he said.

    Asked whether such electronic money services like Japan Railway Co.'s Suica and Rakuten's Edy will be powerful rivals to PayPal Here, Kitano said it is unclear how the electronic money market will change over the next several years, but he thinks they can coexist with each other. Plus, Softbank sells cellphones with an electronic money function, too, so the company will be able to adjust both electronic money and credit cards, he added.

    Kitano added that PayPal Here has more merits such as enabling the shop owner to manage their business more efficiently and strategically, as customers' shopping records can be organized with the smartphone's software.

    Kitano added that in the future, PayPal Here users will be able to organize their expenses, either business or personal, through the PayPal account in much the same way as housewives have traditionally kept records of household expenditures in a notebook.

    Softbank said it will still take several weeks to organize PayPal Japan and launch the PayPal Here service.

    During the first month, Kitano said PayPal Japan plans to distribute PayPal Here card readers to all Softbank shops nationwide so that owners of commercial enterprises can purchase them, he said.

    Kitano also said the company will aim to be listed on the Tokyo Stock Exchange in a few years.

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