PayPay Corporation's net profit rose 83% year-on-year to ¥19.7bn in the three months to June 2026, and the growth this quarter came less from the payments app than from its banking and brokerage units, according to an extraordinary report the company filed with Japan's Kanto Local Finance Bureau on July 31, summarising results first disclosed under US securities law as a Form 6-K. Operating revenue rose 27% to ¥109.8bn, and adjusted EBITDA rose 59% to ¥37.4bn, lifting the EBITDA margin to 34%.
| Metric | Q1 value | Year-on-year change |
|---|---|---|
| Operating revenue | ¥109.8bn | +27% |
| Net profit | ¥19.7bn | +83% |
| Adjusted EBITDA | ¥37.4bn | +59% |
| Payment segment revenue | ¥88.6bn | +25% |
| Payment segment GMV | ¥5.39tn | +23% |
| Financial services revenue | ¥22.5bn | +44% |
Payments, still PayPay's largest business, grew revenue 25% to ¥88.6bn on transaction volume of ¥5.39tn, up 23%. Online payment volume jumped 44%, spending routed through the PayPay Credit product rose 30% and PayPay Card volume rose 28%. Monthly active payers reached 41.7mn against 74.6mn registered accounts, a 56% engagement rate, and the take rate edged up to 1.64%. Financial services revenue grew faster, up 44% to ¥22.5bn: PayPay Bank's deposits reached ¥2.3tn, up 17%, its loan book expanded 37% to ¥1.3tn, and revenue from financial-product sales rose 65% to ¥3.3bn as PayPay Securities' account base grew 29% to 1.82mn amid brisk trading. PayPay Bank also changed its president during the quarter as part of a wider management reshuffle.
PayPay tightened its loyalty economics on June 2, ending point rewards on purchases paid for with PayPay Points and swapping a running 0.5% bonus on its Gold card for an annual award of 11,000 points to cardholders spending more than ¥1mn a year. The company says the change added ¥1.0bn to profitability in June alone while pushing identity-verified (eKYC) users to about 42.5mn, up 1.9mn in the quarter. The filing also restates a plan announced June 4 to buy a 70.2% stake in T&D Financial Life Insurance, aimed at adding steadier, interest-linked income to a business built on transaction fees. Completion is expected in October 2027, pending regulatory approval, and would give PayPay a foothold in Japan's roughly ¥45tn domestic life-insurance market.
PayPay filed a second, separate disclosure the same day: a capital and business alliance with Seven & i Holdings and Seven-Eleven Japan, alongside SoftBank and LINE Yahoo. PayPay will buy 48,309,178 Seven & i shares, a 2.13% stake, through a placement of treasury shares priced at ¥2,070 apiece, for ¥100.0bn. SoftBank is separately buying an identical stake for the same amount, with both payments due August 17. PayPay intends to hold its stake long-term and needs Seven & i's written consent before selling or pledging it, though Seven & i has agreed not to withhold consent unreasonably if PayPay wants to use the shares as collateral for financing.
Commercially, Seven & i's 7iD membership system will be folded into PayPay ID, PayPay Points will replace Seven Miles as the reward currency across Seven-Eleven's more than 20,000 Japanese stores, and PayPay will take over development of the Seven-Eleven Japan app. Seven & i brings roughly 20mn daily customers to the tie-up; PayPay counts more than 75mn registered users. PayPay's own filing is candid about the near-term math: it says the alliance's effect on profit for the year to March 2027 is still undetermined, and it will announce further details once they are settled.