Kyash announces general availability for it Corporate Remittance Service

Kyash announced that its “Kyash Corporate Remittance Service” has surpassed 400,000 transactions and JPY 2 billion in total transfer amount during the pilot phase that started in January 2024. The service has now officially launched and is generally available.

Since its inception, Kyash has been committed to its mission of “Creating an infrastructure for value movement.” The Corporate Remittance Service is part of this commitment, offering a cost-effective and rapid solution for corporate fund transfers. The service aims to contribute to cost reduction and operational efficiency for businesses.

Launched in December 2021, the Corporate Remittance Service enabled businesses to send remuneration and sales proceeds to freelancers and gig workers via the Kyash app, i.e. to a Kyash wallet.

In response to strong demand from businesses, the service has now added the ability to transfer funds directly to bank accounts. Businesses can continue to use the same bank transfer data and format as before, initiating transaction via the Kyash API or file upload.

Companies with frequent financial transactions can connect their service with the Kyash API, enabling cost-effective and automated transfers and payments. There is no initial or monthly fee, and transfers are charged at a rate of JPY 50 per transaction.

Leveraging Kyash’s expertise in wallet services, the company can swiftly transfer funds to bank accounts at over 1,000 financial institutions across Japan.

Wage Payments Directly to Digital Wallets

Japan’s 1947 labor standards law requires salaries be paid directly in cash. An exemption was later added to allow direct bank deposits. Originally proposed in 2018, additional adjustments have been made in 2023 to further loosen these standards with the beginning of the new fiscal year. In addition to digital wallets, other digital transfers (e.g., payroll/debit cards) are also to be permitted for the transfer of salary payments.

However, to our knowledge, no wallet provider has launched such a service yet, although several have applied. The regulations require the potential app operators to be screened, and companies considering digital wage payments also have to obtain consent from employees.

It appears clear, though, that the addition of bank account transfers to the Corporate Remittance Service by Kyash positions the payment services provider as a single solution for payroll processing.

Use Cases for the Corporate Remittance Service

The Corporate Payment Service offers a versatile solution for various situations, including:

• Payment of sales proceeds or purchase amounts on platforms such as online marketplaces and e-commerce malls.
• Payment of appraisal amounts for buyback services.
• Expense settlement.
• Payment of wages, part-time work earnings, and various rewards.
• Refunds for canceled events, flight cancellations, or delays, as well as refunds for purchased items and fares.

The service is particularly well-suited for businesses that frequently use bank transfers or have a high volume of transfer transactions.

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