New method of paying salaries. Will there be a breakthrough?
Ten companies of the Japanese technology conglomerate SoftBank have started paying employee salaries directly to the PayPay digital wallet account, also owned by SoftBank.
PayPay is the largest mobile payment application in Japan. It is owned by LY Corporation, a subsidiary of SoftBank.
The initiative aims to increase employee benefits in payments by increasing compensation options and promoting PayPay.
– explains the company in a statement.
This initiative is the first of its kind in Japan, and perhaps in the world. It was announced in August. It is already known that three more companies are planning a similar solution.
Until now, Asian freelancers were paid via e-wallets or QR code payments. This was a common practice, e.g. in India, where many employees have no access to banking services, but it must be admitted that paying salaries to a bank account is still the most popular. Only from the account do people transfer money to their preferred digital wallet.
New method, new rules
A number of rules have been established regarding the payment of remuneration into the wallet by companies. These include the requirement to return remuneration in the event of bankruptcy of the service provider. However, there are still no clear rules on what happens in the event of wallet interruptions. The most important issue – cyber attacks – was not discussed.
But everything remains in development. SoftBank employs approximately 65,000 people, so paying them with a new method is a pretty good way to quickly develop the service.
