Stripe launches new features for businesses in Japan, adds PayPay integration

By Gloria Methri

Stripe, the global programmable financial infrastructure platform, has launched a set of major product updates aimed at supporting businesses in Japan and international companies expanding into the Japanese market.

The updates mark a leap forward in payment flexibility, speed, and compliance, as Stripe addresses evolving consumer preferences and regulatory requirements in one of the world’s most digitally savvy economies.

Enabling Popular Local Payment Methods

Stripe is now making it easier for businesses to cater to local customer expectations by enabling support for PayPay, Japan’s widely used digital wallet with over 68 million users. Businesses can now accept PayPay for online purchases and benefit from faster payouts, receiving funds in as few as four business days—far ahead of the industry norm of month-end settlements.

In addition, Stripe is enabling card installments for businesses, allowing consumers to split purchases into smaller, manageable payments—an increasingly popular option for high-ticket items in Japan’s competitive eCommerce market.

“I am delighted to announce our partnership with Stripe, a company with a strong global track record in online payments,” said Toshifumi Kasakawa, chief executive officer of PayPay. “Businesses on Stripe can now offer PayPay’s code-based payments to their customers, ensuring a secure and effortless payment experience. PayPay uniquely connects with younger users who might not have access to credit cards. We welcome businesses to explore the potential benefits of integrating PayPay into their platforms.”

Streamlining Compliance with Japan’s New 3D Secure Mandate

In response to Japan’s recent enforcement of the 3D Secure mandate for online credit card transactions (effective March 2025), Stripe has rolled out intelligent authentication features that apply exemptions when possible and trigger verification only when necessary. This reduces checkout friction and helps prevent legitimate transactions from being incorrectly declined.

When paired with Stripe Radar, the company’s AI-powered fraud prevention solution, businesses have already seen measurable improvements.

Introducing Network Tokens: A First in Japan

Stripe is also the first payment platform in Japan to offer network tokens—a modern and more secure method for processing card payments. These tokens are unique to each merchant-card pair and reduce the need to store sensitive primary account numbers, thereby lowering fraud risks and improving authorisation success rates.

Stripe’s infrastructure supports some of Japan’s most prominent companies, including Toyota, Nikkei, ANA Group, and Tokyu. The company also facilitates market expansion for global businesses like Shopify, Uber, X, and Atlassian, making it a trusted partner for international commerce in Japan.