These enhancements focus on local payment method support, regulatory compliance, and increased transaction efficiency, reinforcing Stripe's commitment to localising services for regional business needs.
As part of its localised strategy, Stripe now enables businesses in Japan to accept PayPay for online purchases. PayPay, one of Japan’s most widely used QR-code-based payment apps with over 68 million users, represents a significant addition for merchants seeking to meet evolving consumer preferences. In addition, Stripe has accelerated the payout process for PayPay transactions, enabling businesses to receive funds in as few as four business days, a marked improvement from the typical month-end settlement timeline.
Stripe has also rolled out support for card installment payments in Japan. This option allows customers to split the cost of purchases into smaller, manageable payments, which can be particularly useful for higher-priced goods and services. The installment functionality is expected to help businesses attract a broader customer base by offering more flexible payment experiences.
Stripe is also addressing regulatory shifts in the Japanese payments landscape. Following the enforcement of the 3D Secure (3DS) mandate for online credit card payments in March 2025, Stripe has implemented solutions to help businesses remain compliant while reducing customer friction. The company’s dynamic approach applies exemptions when applicable and initiates authentication only when necessary. This helps protect transactions from fraud while maintaining high conversion rates.
The integration of Stripe Radar, the company’s machine-learning-powered fraud prevention tool, complements the 3DS rollout. By proactively identifying and mitigating fraud risks, Radar improves payment security and reduces false declines.
Stripe now supports network tokens for online card transactions. Network tokens replace sensitive card data with a secure, merchant-specific identifier, reducing the risk of data breaches while improving the success rate of online payments. The use of network tokens can also lead to cost reductions and higher authorisation rates, benefiting both businesses and their customers.
Stripe’s updated payment infrastructure continues to attract major Japanese enterprises such as Toyota, Nikkei, ANA Group, and Tokyu, alongside international brands like Shopify, Uber, Atlassian, and X. These developments underscore Stripe’s growing role as a key partner for businesses looking to optimise their digital payment strategies in Japan.With these updates, Stripe aims to help businesses with faster, safer, and more flexible payment solutions tailored to Japan’s digital commerce landscape.
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