PayPay and OBC sign MoU for digital salary payments

OBIC Business Consultants (OBC), a developer of core business systems, and PayPay have concluded a memorandum of understanding regarding functional collaboration for digital salary payments.

Background

Due to a partial revision of the Enforcement Regulations of the Labor Standards Act, a new method of salary payment, called “digital salary payment,” in which funds are transferred to a fund transfer account, has been added from April 2023.

OBC believes that as cashless payments become more widespread and remittance services become more diverse, the number of employees who wish to have their wages paid digitally will increase at companies using the “Hogyo Cloud.” For some time now, OBC has been considering developing a system that allows back-office staff to make wage payments digitally without placing a burden on their work.

On August 9, 2024, PayPay was designated by the Minister of Health, Labor and Welfare as a money transfer business that supports digital salary payments to the accounts of money transfer businesses. On August 14, the “PayPay Salary Receipt” service was launched for employees of SoftBank Group companies, and the service is scheduled to be launched for all PayPay users by the end of 2024.

In light of the above, OBC, which aims to digitalize corporate back-office operations, and PayPay, which aims to further promote the spread of cashless payments, have discussed the matter and concluded a basic agreement on functional collaboration in digital payroll payments.

This will reduce the workload of companies that add digital payroll payments as a means of paying employees, and improve convenience for back-office staff and employees who use “PayPay Payroll.” In addition, together with PayPay, which promotes digital payroll payments through “PayPay Payroll,” OBC will support companies from both an operational and technological perspective.

How to receive your salary with a PayPay account

First, employees who wish to receive their salary through a PayPay account will check whether the necessary labor-management agreement has been concluded at their workplace to support digital salary payment, and after receiving an explanation of points to note regarding digital salary payment from their employer, they will individually apply for consent.

Next, when applying for “PayPay Salary Receipt” through the PayPay app, a “salary receipt account” for receiving salary through the PayPay account, a “PayPay Money Account (salary receipt)” to hold the received salary as PayPay balance, and an “account number for depositing to the salary receipt account (bank account number)” for charging the “PayPay Money Account (salary receipt)” by bank transfer will be set.

When the account number is communicated to the employer and the employer transfers the salary to the account number, it will be charged to the “PayPay Money Account (salary receipt)” as PayPay balance.

Details of the basic agreement

By linking the functions of PayPay’s “PayPay Payroll” with OBC’s “Hogyo Edge Digital Labor Management Cloud” (scheduled for Spring 2025), companies will be able to reduce input errors and burden when employees enter the account number used to deposit money into their payroll account and improve the efficiency of employers’ back-office staff’s work of collecting payroll account details, aiming to provide a new user experience.

Furthermore, companies using the “Payroll Hokkyo Cloud” can make seamless bank transfers to the account information collected by the “Hokkyo Edge Digital Labor Management Cloud,” enabling them to make salary payments to traditional financial institution accounts, as well as to employees who use “PayPay Payroll Receipt,” without imposing any workload on them.

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