PayPay Corporation · NASDAQ:PAYP
PayPay — Q1 FY2026 Earnings Presentation
33 slides from PayPay's earnings presentation, July 2026
Slide 1: Earnings Presentation Q1 2026
Earnings Q1 Presentation 2026
Slide 2: Disclaimer
Disclaimer Cautionary Note Regarding Forward-Looking industry and the digital financial services industry in Japan; There are a number of limitations related to the use of our ability to implement pricing strategies and expand our Statements and Financial Guidance service offerings; our ability to m
Slide 3: CEO Message
CEO Message Earnings Presentation
Slide 4: Earnings Overview
Earnings Overview Total Revenue Revenue Less Transaction Cost1 Adjusted EBITDA3 (RLTC) (JPY bn) (JPY bn) (JPY bn) Q1 78% 77% Q1 27% 34% 380.7 Margin2 Margin3 Q4 296.4 111.1 Q4 Q4 Q3 Q3 Q3 Q2 +27% +59% Q2 +26% Q2 110 Q1 85 Q1 37 Q1 86 67 24 FY25 FY26 FY25 FY26 FY25 FY26 1. Revenue Less Transaction Co
Slide 5: Building Japan's Leading Digital Finance Platform
Our Strategy Remains Unchanged Building Japan’s Leading Digital Finance Platform Expanding products and customer touchpoints1 Rich data powered by diverse customer touchpoints1 Time When Who Area Educ. Skills Behavioral Payments Where Career Work History Traffic Social How Ties Much Events Pref. SKU
Slide 6: Acquisition of Shares in T&D Financial Life
Acquisition of Shares in T&D Financial Life1 1. Leveraging PayPay’s customer base Provide investment products bridging banking and securities Add digital life insurance products High Return Investment Life & health products insurance Mutual Funds Equities Life insurance 2. Enhancing investment perfo
Slide 7: User ID Data Points
No.1 Retailer ✕ No.1 Payment 1 2 Physical Customer Touchpoints Payment Platform User ID Data Points Stores: Approx. 22,000 Users: Approx. 75 Million Customer Visits: Approx. 20 Million / Day Transactions: Approx. 30 Million / Day 1. SEVEN-ELEVEN JAPAN CO.,LTD. operates the largest number of stores i
Slide 8: Strategic Partners to Enhance the Customer Experience
Strategic Partners to Enhance the Customer Experience Product Logistics Store Membership Sales 7-Eleven Development Operations Platform Promotions App & Sourcing User ID・Data Points UX Personalized Marketing 8
Slide 9: Digital Customer Touchpoints
Strategic Partners to Enhance the Customer Experience Digital Customer Touchpoints Product Logistics Store Membership Sales 7-Eleven Development Operations Platform Promotions App & Sourcing User ID・Data Points UX Personalized Marketing 9
Slide 10: Long-Term Strategy to Enhance LTV in the AI Era
Long-Term Strategy to Enhance LTV in the AI Era 18 Billion 1 Enhancing LTV Continuous Real-Time Data Points / Year AI-Driven Learning Inference & Optimization 1. Estimated annual payment-related data volume (including non-PayPay transactions) observable approx. 3 years post-ID integration with SEVEN
Slide 11: PayPay's Entry into the U.S. Market
Strategy for Global Expansion PayPay’s Entry Overseas Convenience into the U.S. Market Store Operations 11 11
Slide 12: Near-Term Growth Driven by Upgrading the Customer Experience
Near-Term Growth Driven by Upgrading the Customer Experience Mobile Order Massive User Base of 75 Million Fast Pickup with Pre-Payment Targeted Approach Delivery to Potential Customers 3,000 out of 3,300 In-Store Items Available for Delivery 12
Slide 13: One-Stop Financial Services Platform for a 100-Year Life
One-Stop Financial Services Platform for a 100-Year Life 100-Year Life Era: Seamless Financial Services Tailored to Every Life Stage (Age) 0 10 20 30 40 50 60 70 80 90 100 Life Stage Secondary/ Employment/ Marriage/ Career Growth/ Travel/ Hobbies/ Long-term care/ Inheritance/ Primary Home purchase/
Slide 14: Cross-sell Expansion Drives ARPU Growth
Cross-sell Expansion Drives ARPU Growth Management Accounting （ARPU/ JPY） +150 990 +110 840 Financial service +110 730 Interest income 620 Transaction and service Payment income Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY2023 FY2024 FY2025 FY2026 1. ARPU is a proprietary operating metric based on the
Slide 15: Financial Highlights
Financial Highlights
Slide 16: FY2026 Q1: Earnings Highlights
FY2026 Q1: Earnings Highlights Topline Growth Profitability Expansion Beat Guidance Consolidated +27% +59% 34% Total Revenue Adj. EBITDA1 Adj. EBITDA Margin1 FY2026 Full-Year Guidance YoY YoY Driven by operating leverage, etc. Raised GMV Growth Credit Balance Growth Reward Points Revision Revolving
Slide 17: FY2026 Q1: Selected Topics
FY2026 Q1: Selected Topics From June 2026 From July 2026 Changes to Reward Points Revision Other Credit Card Usage on PayPay eKYC Expansion Deficit Eliminated 1 eKYC-verified Users (mn) 42.5 Other 1.4% 40.6 Credit Cards 38.9 37.5 36.1 QR GMV JPY15.5 tn (FY2025) Q1 Q2 Q3 Q4 Q1 FY2025 FY2026 JPY 1bn C
Slide 18: Total Revenue
Consolidated Payment Financial Service Total Revenue 77.9% 77.2% 75.9% RLTC Margin (% of Total Revenue) 109.8 YoY+27% (JPY bn) 86.2 22.5 Financial Service 69.1 15.6 12.6 88.6 Payment 71.0 57.4 Elimination Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY2024 FY2025 FY2026 18
Slide 19: Adjusted EBITDA
Consolidated Payment Financial Service Adjusted EBITDA1 34.1% 27.3% 37.4 17.6% YoY+59% Adjusted EBITDA Margin1 23.5 (JPY bn) 12.2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY2024 FY2025 FY2026 1. Adjusted EBITDA and Adjusted EBITDA Margin are non-IFRS measures. See the appendix for reconciliations of non-IFRS fina
Slide 20: Operating KPIs | Payment Segment GMV & Take Rate
Consolidated Payment Financial Service Operating KPIs | Payment Segment GMV & Take Rate 2.19% 2.20% 2.23% Gross T/R 1.63% 1.62% 1.64% Net T/R YoY+23% 5.4 (JPY tn) 4.4 YoY+28% 1.0 PayPay Card 3.5 0.8 1.4 PayPay Credit 0.6 YoY+30% 1.1 0.8 QR 3.0 PayPay Balance 2.1 2.5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY2024
Slide 21: Operating KPIs | Monthly Transacting Users (MTU)
Consolidated Payment Financial Service Operating KPIs | Monthly Transacting Users (MTU) MTU Payment Segment Monthly GMV per MTU (mn, last month of each relevant period) 56% (Quarterly average) 22 20 54% 22.2 19 22.0 21.8 21.6 21.4 21.2 21.0 20.8 52% 20.6 20.4 20.2 20.0 19.8 YoY+10% 41.7 19.6 43 19.4
Slide 22: Operating KPIs | PayPay Card
Consolidated Payment Financial Service Operating KPIs | PayPay Card # of Active Cards Issued Credit Card Financing Balance 17.7 (mn) (JPY bn) Approval Rate YoY+22% 700,000.0 Multiple Cards Enhanced YoY+26% 573 14.5 Launched 600,000.0 Cash Advance 454 YoY+57% 12.0 Installment 383 500,000.0 400,000.0
Slide 23: Operating KPIs | PayPay Card – Credit Quality
Consolidated Payment Financial Service Operating KPIs | PayPay Card – Credit Quality Management Accounting Delinquency Transition Rate1 NPL Ratio Stage 3 Stage 1 94% (Non-performing: 3+ months past due2) (Not overdue) 5% Provision rate: 1% Provision rate: 64% 2.6% June 2026 Credit Card Receivables J
Slide 24: Operating KPIs | Financial Service Segment
Consolidated Payment Financial Service Operating KPIs | Financial Service Segment # of Bank Deposit Accounts # of Securities Accounts 10.2 (Accounts/ mn) (Accounts/ mn) PayPay IPO YoY+11% 1.82 YoY+29% 9.2 1.42 8.2 1.18 End of Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 End of Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY2024 FY2025
Slide 25: Operating KPIs | Deposits, Loans, Interest Rate Margin
Consolidated Payment Financial Service Operating KPIs | Deposits, Loans, Interest Rate Margin1 Deposits Loans Interest Rate Margin NPL2: 0.2% YoY+17% 2.3 1.33 (JPY tn) (JPY tn) 0.36 2.0 % Deposit Yield Business YoY+37% 0.07 3.75% Loan Yield Consumer 1.90% 1.7 0.29% Loan Yield3 1.84% 2.04% 0.97 Mortg
Slide 26: Balance Sheet
Consolidated Payment Financial Service Balance Sheet Total Assets (June 2026) 7.5% 0.5 (JPY tn) Cash / G’tee deposits Equity Ratio Securities 1.8 3.1 127 Deposits Net Debt (JPY bn) Loans, 22.5% advances to 2.6 Borrowings 0.8 customers Other liabilities 1.2 Q1 Adj. ROE (annualized) Other assets 0.5 N
Slide 27: FY2026 Guidance
FY2026 Guidance Consolidated Payment Financial Service Full-Year Guidance Raised on Expected Continued Strong Momentum from Q2 Onward (JPY bn) FY2026 Q2 FY2026 Full Year 114 – 116 465 – 473 Total Revenue 37.5 – 39.5 149.0 – 155.0 Adjusted EBITDA1 1. Adjusted EBITDA is a non-IFRS measure. See the app
Slide 28: Appendix
Appendix
Slide 29: Non-IFRS Financial Measures and Reconciliations
Non-IFRS Financial Measures and Reconciliations Adjusted EBITDA & Adjusted EBITDA Margin (JPY mn) FY2025 Q1 FY2026 Q1 Profit for the Period 10,809 19,749 Income Tax Expense 5,050 10,056 Share of Loss of a Joint Venture Accounted for Using the Equity Method 105 60 Depreciation and Amortization 5,729
Slide 30: Glossary
Glossary Payment Segment GMV The total of PayPay Balance GMV, PayPay Credit GMV and PayPay Card GMV, excluding the GMV of cancelled transactions PayPay App GMV (or QR GMV) The total of PayPay Balance GMV and PayPay Credit GMV, excluding the GMV of cancelled transactions GMV of payments made using Pa
Slide 31: Glossary
Glossary Calculated by dividing the number of MTU during the last month of each relevant period by the total number of Active Rate registered users at the end of each relevant period Calculated by dividing the total Quarterly GMV for PayPay Balance, PayPay Credit, and PayPay Card by the total Paymen
Slide 32: Glossary
Glossary The total number of PayPay Bank regular savings accounts as of the end of the month, for both individual and corporate Number of PayPay Bank Deposit Accounts accounts, excluding closed accounts and fixed deposit accounts The cumulative total number of PayPay Securities comprehensive securit
Slide 33: PayPay
p>) PayPay