BIPROGY will enter the digital salary domain, which was deregulated in April 2023, through its “doreca” business that provides full outsourcing of operations necessary for digital money payments. The service has already been implemented in various areas such as insurance payments and business commission fees.
By entering the digital salary domain, BIPROGY will contribute to the widespread adoption of digital salary systems in Japan by supporting not only system implementation and operations (which are challenging in other domains as well) but also various procedures required for implementation.
BIPROGY will first support KDDI‘s “au PAY” and Rakuten‘s “Rakuten Pay”, and will start the service after both companies receive approval from the government. In August, PayPay became the first company designated by the Minister of Health, Labour and Welfare as a fund transfer business operator that handles digital wage payments to the accounts of fund transfer business operators.
Background
While the government aims for a cashless payment ratio of 40% by 2025, the cashless ratio in 2023 was 39.3% and steadily increasing. Interest in digital salary has been growing since it became possible through the amendment of Labor Standards Act Enforcement Regulations in April 2023.
About Entry into Digital Salary Domain
The value exchange platform “doreca” is an online charging business for individual digital money accounts. It enables full outsourcing of operations (including systems and settlement tasks) for companies to make digital money payments to customers and employees. The business launched in 2021 and has been adopted by various industries including insurance companies, expense settlement providers, and advance payment service providers.
For entry into the digital salary domain, doreca will add money transfer functionality that complies with the Japanese Bankers Association format and provide implementation support consulting services. By providing total support for companies from pre-implementation to post-implementation operations, doreca will facilitate smooth implementation of digital salary systems and contribute to their widespread adoption and expansion.
Implementation Support Consulting Services
This is a service that supports companies with the following necessary preparations (from content organization to implementation) for introducing digital salary:
- Conclusion of labor-management agreements with labor unions or representatives of the majority of workers
- Explanation of important considerations to employees and collection of consent forms from employees
This implementation support consulting service will be provided as a new service lineup of “doreca.”