By Tia, Techub News
On the afternoon of October 9th, Binance co-founder He Yi posted on the X platform, "Big things are coming," along with the message "PayPay and Binance Japan have formed a strategic alliance." At the same time, Binance founder Changpeng Zhao also posted a photo with Masayoshi Son on social media, sparking widespread discussion within the industry.
This series of moves quickly made headlines in Japanese and international financial media. The market quickly realized that this was not just a simple corporate cooperation announcement, but a dual investment and strategic layout.
According to an official announcement, Japan's national payment app, PayPay, has acquired a 40% stake in Binance Japan. As a flagship product of SoftBank Group, PayPay boasts over 70 million registered users and is a pillar of Japan's cash-reducing movement. Binance Japan is the Japanese subsidiary of Binance, the world's largest cryptocurrency exchange. This transaction is more than just a cross-shareholding; it signals the crypto world's infiltration into the core of the mainstream financial system.
A handshake from payment to blockchain
According to information disclosed by both parties, the partnership between PayPay and Binance Japan will begin with a practical implementation: enabling users to directly purchase cryptocurrencies using PayPay Money and withdraw proceeds back to their PayPay wallets for offline QR code payments, online shopping, and peer-to-peer transfers. In other words, this will be the first time that fiat and crypto assets will be integrated into Japan's mass payment system.
This seemingly simple integration is profoundly symbolic. For a long time, cryptocurrency transactions and everyday payments were strictly separated. Even in regulatory-friendly Japan, users still had to repeatedly switch between banks, exchanges, and wallets, creating a cumbersome process and a fragmented experience. The addition of PayPay signifies that blockchain assets are becoming an everyday part of people's lives.
Masayoshi Yanase, Head of Financial Strategy at PayPay, said in a statement: "Through this collaboration, we hope to provide users with a digital financial experience that is both convenient and secure." Chino Takeshi, General Manager of Binance Japan, responded: "Leveraging PayPay's user scale and trust foundation, we will promote Web3 services to the masses." The core of this collaboration is not only the complementary channels, but also the collision of concepts - cryptocurrency is no longer just an investment product, but an integral part of financial life.
SoftBank's ambition: from mobile payments to financial hub
From a broader perspective, PayPay's move isn't surprising. Since its founding in 2018, PayPay has been a key driver of SoftBank's drive for digital payments transformation in Japan. Over the past five years, PayPay has expanded from QR code payments to wealth management, lending, and insurance, gradually forming a financial ecosystem centered around the "wallet." Now, it's extending its reach into crypto assets—a natural extension of fintech development and an opportunity for SoftBank Group to reshape its financial narrative.
Masayoshi Son has repeatedly expressed his interest in crypto assets and blockchain technology. According to multiple sources, Binance founder CZ met with SoftBank executives as early as last year to discuss potential collaboration. PayPay's investment could be seen as SoftBank's official entry into the "digital asset era." Previously, Alipay and WeChat Pay shaped the digital financial ecosystem in China; now, Japan is also experimenting with its own version—a financial infrastructure with blockchain underpinnings, jointly built by SoftBank and Binance.
Binance’s implementation logic: Balancing regulation and localization
For Binance, the strategic value of the Japanese market is clear. As the world's third-largest economy, Japan boasts a robust financial regulatory system and a high rate of digital adoption, but also places extremely strict scrutiny on crypto assets. Since obtaining its official license in Japan last year, Binance Japan has been pursuing deeper localization strategies—both ensuring compliance and expanding its user base.
The alliance with PayPay provided Binance with a breakthrough. PayPay's payment infrastructure and user trust provided Binance with local legitimacy, while Binance's blockchain technology and global liquidity opened up new growth opportunities for PayPay.
This echoes Binance's global strategy in recent years. Faced with tightening regulations worldwide, Binance has gradually shifted from a "solo" approach to local collaboration. Whether in France, the UAE, or Thailand, Binance is embedding itself into local financial systems through joint ventures, alliances, or licensing partnerships. This collaboration with Japan is perhaps the most iconic example of this model.
The significance of success or failure
The significance of this collaboration extends far beyond the Japanese market. If PayPay and Binance Japan can successfully launch an integrated product, even if it simply allows millions of users to purchase cryptocurrencies through a familiar payment gateway, it could be enough to shift global perceptions of the viability of crypto payments.
On the other hand, if user interest is low or the project is hindered by tightened regulations, it will also illustrate another fact: cryptocurrencies are still a long way from "daily life" and the public still needs stable, simple and predictable payment methods rather than assets full of uncertainty.
Therefore, this isn't just a business collaboration; it's a gamble on the future of finance. Masayoshi Son and CZ are betting on whether blockchain can be tamed by mainstream payments and become a tangible, practical part of everyday life. Meanwhile, Japan is testing the waters of Web3's promise in its real-world financial landscape.
