Pay-Easy: A Modern Alternative to Traditional Bank Transfers

This article is brought to you by KOMOJU
We help businesses accept payments online.

Japan often invokes notions of the latest technology or cutting-edge ideas. In truth, many businesses, including collection agencies, have long been analog. Payments between the private sector, government agencies, and financial institutions relied on paper-based processes, magnetic media, and isolated networks well into the 2020s. If that sounds absurd, consider that the Japanese government only announced the phase-out of floppy disks in 2024.

One innovative solution created to bridge the digital gap is Pay-easy, which was developed by Mizuho Bank (then Fuji Bank) in 2001. Designed to simplify transactions for businesses and their customers, Pay-easy is a unified platform. It allows consumers to complete payments online, at bank ATMs, or even at post offices (Yucho Bank) via a Multi-Payment Network (MPN) jointly handled by financial institutions throughout Japan.

Offering Pay-Easy in your store allows your customers to pay via ATMs or Internet banking; they can choose between online banking or cash and can make payments anytime, even outside of regular bank hours. For merchants, integrating Pay-Easy is simple with KOMOJU, which streamlines checkout and expands your payment options. This helps you cater to several demographics in Japan while making your operations more efficient.

Let’s explore how eCommerce stores can use and benefit from Pay-easy and KOMOJU.

What is Pay-Easy?

Pay-easy is a payment service that allows users to make payments conveniently from their smartphone, computer, or bank ATM. Customers receive a payment number from an invoice, payment slip, shopping site receipt, or email notification. They enter the payment number at a supported bank ATM—select Pay-easy from the menu, and pay using cash or an ATM card.

For online banking, if their bank supports Pay-easy, they can log into their online banking account, select Pay-easy, enter the payment number, and complete the payment.

If an online store offers Pay-easy at checkout, customers can choose it, find their bank, log in with their usual details, and pay directly. It’s a fast, simple way to keep things smooth and convenient for everyone.

Pay-easy operates via a “multi-payment network” managed by the Japan Multi-Payment Network Promotion Association (JAMPA). This organization was created to integrate government agencies, local governments, businesses, financial institutions, and other groups involved in payment collection. More importantly, it provides people in Japan with a modern, convenient alternative to outdated payment methods while still aligning with the country’s preference for cash.

Pay-easy has been in operation since October 2001 and has experienced continuous growth, particularly in the local and government sectors. In fiscal year 2019, likely influenced by the increased shift to online services during the COVID-19 pandemic, Pay-easy saw 79.59 million transactions and a total of 22.6 trillion yen, marking an 18-year streak of consecutive growth. Fast-forward to 2023, and Pay-easy hasn’t slowed down. Online banking is leading the charge, accounting for approximately 62.3 million transactions, up from 56.2 million the previous year.

Most financial institutions in Japan, including banks, credit unions, credit associations, and Japan Post Bank—the country’s postal service and government-owned bank, as well as one of the largest financial institutions in Japan—support Pay-easy. While it was originally designed for utility bills and paying taxes and government fees, Pay-easy has grown to cover a wide variety of payments, such as:

Phone bills and insurance premiums
Credit card payments
Online shopping and mail-order purchases
Domestic airline tickets through All Nippon Airways (ANA)
JR highway bus fares and school fees
Even telephone betting for public races

How Pay-Easy Works

To complete transactions, customers input a payment number from an invoice or slip at a bank ATM or via online banking. The payment number is found on a payment slip or invoice delivered by mail or email. There are two methods:

In-Person (Bank or ATM): Customers use the invoice or payment slip to enter the payment number and confirmation number, then complete the payment at a bank ATM or through online banking.
Online Banking: The customer selects Pay-easy at checkout, searches for their bank, and, if supported, completes the payment directly from their bank account.

If Pay-easy is offered on an eCommerce store, customers can pay directly from their bank account. Payments are instantly transmitted to the receiving institution via the Pay-easy multi-payment network.

Pay-easy offers two types of collection services:

Direct collection agencies: Your store or organization manages the payment process. To qualify as a “direct collection agency,” you must join JAMPA.
Indirect collection agencies: A third-party agent or similar service handles payments.

Payment Steps

Below are the steps a customer will make to complete a payment with Pay-easy:

Step 1: Get Your Payment Details

To use Pay-easy, customers will need a unique payment number or code for each transaction. This information can typically be found via:

Invoices or Payment Slips: Numbers like the collection agency number, payment number, or confirmation number.
Shopping Sites: When customers select Pay-Easy at checkout, the necessary payment details will be displayed.
Email Notifications: If the payment details were sent via email, customers should look for the Pay-easy numbers.

Step 2: Visit a Bank ATM or Log in to Online Banking

Customers can choose to pay via an ATM or online banking based on their preference:

At an ATM:

Locate an ATM that supports Pay-easy
Select the Pay-easy option from the ATM menu.
Enter the payment details from the invoice or payment slip.

Online Banking:

Choose Pay-easy as the payment method.
Customers log in to their Internet banking accounts.
Enter the payment details shown on the invoice or the shopping site.

Step 3: Complete the Payment

Whether using an ATM or online banking, completing the payment is quick and simple:

Review Payment Details: Confirm the details on the screen match the information on the invoice or shopping site.
Make the Payment: Customers finalize the transaction by selecting “Pay” or “Confirm.” They can pay using a cash card, cash (at an ATM), bank book (at an ATM), or directly from their bank account (via online banking).

Features of Pay-Easy

Some of Pay-easy’s best features include being able to make payments at ATMs and post offices across Japan, along with the fact that customers can make payments at any time of the day.

Support All Across Japan

Pay-easy is accepted by a partnership of banks, major online services, local government agencies, and even Japan Post. This makes it a flexible and convenient payment solution whether you’re living in a major metropolis like Tokyo or Osaka or even in Japan’s countryside.

Pay-easy is available at ATMs of many major banks, including Mizuho Bank, Mitsubishi UFJ Bank, Sumitomo Mitsui Banking Corporation, Resona Bank, and many others. You’ll also find Pay-easy payment options at Japan Post ATMs (Yucho Bank) and several regional banks like Hiroshima Bank, Fukuoka Bank, and Kumamoto Bank. This extensive network ensures that your customers can easily make payments from almost anywhere in the country.

Available 24 Hours a Day

With the Pay-easy app, your customers can make payments via online banking 24/7. While some banks may have certain restrictions on usage hours, the ability to pay at any time is a relief for those with irregular work hours, such as night shift workers, freelancers, remote workers, and busy parents or caregivers.

Cash, Bank Card, or Bank Transfer

Pay-Easy gives your customers the flexibility to pay bills and taxes at Bank ATMs and post offices across Japan. Whether it’s online shopping, utility bills, or taxes like national health insurance premiums or property taxes, they can easily make payments at post offices or banks—even if it’s not their bank.

Customers have the option to pay with cash or a bank card or even skip the bank altogether and use online banking. Pay-easy bridges the gap between traditional cash payments and digital banking, catering to those who prefer the ease of online payments as well as those who prefer more familiar, cash-based methods.

Benefits for Customers

Here are some of the reasons your customers will appreciate Pay-easy being offered on your eCommerce store.

Safe and Easy Bill Payment Options

Pay-easy offers a safe and familiar way to pay your bills and taxes. Trusted by the government of Japan, it ensures secure transactions, whether you’re handling utilities, taxes, or other fees. With its simple process, you can be confident that your payments are being processed reliably and safely every time.

Available Everywhere in Japan

One of the best things about Pay-easy is how easy it is to access. You can make payments at ATMs from banks and post offices across Japan. This wide availability makes it a great choice, especially in areas where bank branches might be far away. Wherever you are, you’ll find a Pay-Easy location nearby.

Convenient Online Payment Support

If you prefer to do things from home, Pay-easy has you covered with its online payment options. You can pay your bills or taxes anytime, from your smartphone or computer, without stepping out the door. It’s quick, easy, and gives you more control over your payments without waiting in line or dealing with paperwork.

Why Merchants Should Accept Pay-Easy

Below are some reasons why merchants should consider implementing Pay-easy as a payment method.

Reach More Customers

Not everyone in Japan uses credit cards, and many shoppers prefer other payment options—especially if they can pay in cash. According to a 2023 survey by Japan’s Ministry of Internal Affairs and Communications, over 21% of people in Japan still make payments through bank transfers at banks, post offices, or ATMs for online purchases. By offering Pay-Easy, you can appeal to these customers. This is particularly useful for attracting older customers and customers below 20 who cannot create credit cards and prefer to pay cash from ATMs or banks.

Real-Time Payment Tracking

One of the best things about Pay-Easy is that it lets you see payments as they happen. The moment a customer completes their payment, you’ll know—no more waiting or guessing. Plus, Pay-Easy takes the hassle out of reconciling payments.

Unlike traditional bank transfers that require your team to manually match payments with invoices and update records, Pay-Easy handles this automatically. It’s a huge time-saver, minimizes errors, and makes life easier for your staff.

Payment Checks

Mistakes happen when customers manually input payment amounts during bank transfers. Pay-easy eliminates this risk because it automatically sets the payment amount based on the invoice. Customers can’t accidentally pay the wrong amount, so you won’t need to deal with re-billing or chasing down errors. This makes your payment more reliable for everyone.

Convenient Nationwide Access

Pay-Easy is available at banks, online platforms, and post offices, giving it reach across Japan. The inclusion of Japan Post (Yuucho Bank) is a major advantage, as it allows customers in rural areas or those who rely on post office services to easily make payments. As of 2024, there are around 24 thousand post offices nationwide.

Trusted By Millions

Millions trust Pay-easy for important transactions like taxes and utility bills, making it one of the most reliable payment methods around. Its strong reputation for security gives customers peace of mind. By incorporating, you’re leveraging that trust to build stronger relationships with your customers and their confidence in doing business with you.

How to Integrate Pay-Easy for Merchants

Integrating Pay-easy on your own is not easy. There are several complex steps involved, especially if you don’t have a command of the Japanese language. Merchants must join the Japan Multi-Payment Network Promotion Association (JAMPA) here. There are various membership types based on your business’s role, and each has its own requirements and fees. The process is lengthy, involves multiple steps, and requires meticulous attention to detail.

Here’s a brief look at the hassle involved:

Fees: The most basic merchant membership starts at ¥300,000, plus an annual fee of ¥100,000.
Provisional Registration: Submit a detailed application form with your company’s information and agree to JAMPA’s pledge.
Membership Screening: Expect a 10-day review period where JAMPA may contact you for clarifications before provisional registration is approved.
Final Registration: Once provisional registration is complete, you’ll need to submit more paperwork, including signed documents, to finalize your membership.
Approval Process: JAMPA’s board of directors will review your application, and you may need to wait up to a month for final approval.

Integrate Pay-Easy With KOMOJU

The above can seem overwhelming, but with KOMOJU, you only need to focus on collecting payments. Instead of going through all the tedious steps of JAMPA membership on your own, KOMOJU handles the integration process for you. The KOMOJU platform ensures that Pay-easy works seamlessly with your payment system, along with other popular methods like convenience store payments, digital wallets, and gift cards, so you don’t have to deal with the red tape.

KOMOJU will handle the setup and conduct connection tests based on the specified requirements. The system will be configured to receive and transmit billing information for your business, ensuring that Pay-Easy payments can be processed smoothly.

Once the setup and testing are complete, you can begin using the service. The entire process, from application to activation, typically takes between 3-4 business days.

Summary

Pay-easy is a payment solution developed to streamline bank transfers between businesses, government agencies, and customers in Japan. It allows payments through bank ATMs, online banking, and post offices—with cash if preferred—providing a convenient and flexible option for customers across the country. Pay-easy lies in the comfort zone for those in Japan who prefer cash transactions but are seeking modern payment options. Users can make payments in person or at home via online banking.

Offer your customers in Japan a trusted payment method backed by major banks with KOMOJU. A global payment gateway, KOMOJU is a hassle-free way to accept payments, expand payment options, and cater to customers whether they have fully embraced or are still weary of fully digital payments. Pay-easy’s flexibility, availability 24/7, and compatibility with cash, bank cards, and online banking make it a valuable solution for businesses looking to reach customers with different payment preferences.

Click here to learn how KOMOJU can streamline your payment management today.

FAQs

Below are frequently asked questions about Pay-easy in Japan.

What is The Difference Between Traditional Bank Transfers and Pay-Easy?

Regular bank transfers require your customers to input details like the bank’s name, branch code, account number, etc. In contrast, Pay-easy simply requires the payment number to be entered into a special Pay-easy menu found on a bank ATM interface or via an online banking menu.

What types of payments can be made with Pay-Easy?

Pay-easy accepts payments via Internet banking or bank ATMs from customers at participating banks. When customers receive an invoice with the Pay-easy logo, they can pay using their online banking services or in person at an ATM with cash, card, or bankbook.

Is there a payment limit with Pay-easy?

Payment limits may apply depending on your customer’s bank. For example, there could be upper limits for internet banking or ATM usage. These payment limits are typically ¥100,000 and ¥5,000,000 depending on the bank and payment method (cash, bank card, or online).

Can non-residents of Japan use Pay-Easy?

Non-residents can use Pay-easy if they have access to a Japanese bank account. However, you typically need to be a resident to open a bank account in Japan.

How secure is the Pay-Easy system?

Pay-easy uses a secure, dedicated network to connect banks and payees, protecting transactions from unauthorized access. It also leverages the same secure online banking services used by financial institutions. Unlike bank transfers, users don’t need to enter the payment amount manually; it’s automatically displayed based on the invoice number, so there’s no risk of paying the wrong amount. Moreover, account details are not shared.

What banks accept Pay-Easy?

Pay-Easy is accepted at banks across Japan. This extensive network ensures that your customers can easily make payments regardless of their location in Japan. Some of the major banks that support Pay-easy include: