Ten subsidiaries of Japanese tech conglomerate SoftBank Group have begun paying employees’ salaries into SoftBank’s own PayPay digital wallet.
PayPay is the largest mobile payment app in Japan and is owned by LY Corporation – a Softbank subsidiary.
“This initiative aims to enhance payment of employee benefits by increasing salary options and to promote the expansion of the PayPay economic sphere across the entire group,” explained the fintech business back in August, when it announced it would eventually issue digital salary payments.
This is quite interesting as we often needed banks in the earlier days if “credits” needed to be transferred to employees, but with digital wallets this could actually be directly done. The big thing to ensure is that such digital wallets can be easily used to purchase any services or pay for anything that needs to be paid for. And, yes, provision needs to be made for any problems experienced with a digital wallet.
It’s an interesting development though to watch.
See https://www.theregister.com/2024/09/27/softbank_digital_salary