Japan finance firms add AI translation and QR payments

PayPay has added UnionPay QR payments across participating Japanese merchants while SMBC has begun deploying an OpenAI-powered interpreter to bank employees.

PayPay said in a Sept. 3 release that UnionPay App users can now pay through its merchant network using the HIVEX payment platform. Sumitomo Mitsui Banking Corporation announced its separate SMBC-Interpreter rollout on Sept. 11.

The two companies have not announced a partnership between the products. PayPay’s expansion concerns payments made by overseas visitors, while SMBC’s application handles spoken communication between bank employees and customers.

PayPay brings UnionPay QR into its merchant network

Travelers can register UnionPay cards issued in mainland China, Hong Kong or Macau within the UnionPay App. At participating PayPay merchants, they can scan or present a payment code to complete purchases through the HIVEX network.

PayPay said the service can be used for purchases such as meals, accommodations and souvenirs. Prices appear in Japanese yen at the merchant, while the customer’s application calculates the amount in their home currency.

HIVEX connects domestic merchants to overseas mobile-payment services without requiring separate technical integration for every wallet. TBCASoft, which operates the platform, said UnionPay App payments became available at HIVEX-enabled PayPay locations in early September.

TBCASoft described the service as reaching more than 500 million linked UnionPay card users. The figure represents cards linked across UnionPay’s issuing network, not confirmed users of PayPay merchants in Japan.

Merchant availability can depend on a location’s PayPay and overseas-payment settings. PayPay’s use of “nationwide” refers to supported merchants across Japan and does not establish that every business accepting PayPay can process UnionPay App payments.

UnionPay’s international page says its QR service is accepted across 44 countries and regions outside mainland China. UnionPay reports more than 1.5 million overseas merchants, though the company does not provide a Japan-specific merchant total on that page.

PayPay says overseas payment coverage reaches 17 markets

Following the UnionPay integration, PayPay said its merchants can receive payments from 36 overseas cashless services representing 17 countries and regions. The company calculated that the supported markets account for approximately 80% of international visitors to Japan.

PayPay’s 80% figure concerns the countries and regions represented by its supported payment services. It does not mean 80% of overseas visitors have used the platform or completed a payment at a PayPay merchant.

A previous company announcement from October 2025 listed 28 overseas services across 14 countries and regions. PayPay said transaction value generated by overseas cashless services during fiscal 2024 was roughly three times its fiscal 2019 level. The company did not disclose the underlying yen totals.

The latest expansion adds another option for visitors from China, Hong Kong and Macau without requiring them to download PayPay. Card registration, account controls and transaction records remain within the UnionPay App.

PayPay has said it plans to pursue more agreements with overseas payment providers. No timetable, target market list or forecast for UnionPay transaction volume accompanied the September release.

SMBC uses GPT-Live-1 for live bank translation

In a separate Sept. 11statement, SMBC said it had developed SMBC-Interpreter for employees who need to communicate in foreign languages. The bank has started introducing the application in phases.

SMBC-Interpreter listens to speech and generates a translated voice response using OpenAI’s GPT-Live-1 model. Translated text appears on the screen at the same time, allowing employees and customers to review the wording during a conversation.

The bank said the dual output can help when a spoken exchange is difficult to follow. Employees can use the displayed text to confirm information while explaining services or checking operational instructions with customers.

SMBC described the application as an internal support tool. Its announcement did not identify supported languages, participating branches or the number of employees receiving access during the initial deployment.

No accuracy rate, response-time measurement or comparison with human interpreters appeared in the release. SMBC did not say whether staff must obtain human-language support for certain contracts, disclosures or regulated procedures.

The bank said neither the original audio nor the generated translation is stored in the application or connected external services. SMBC stated that the content is not used to train AI models. The release did not identify an external audit of those controls.

The deployments follow separate digital finance programs

SMBC’s interpreter joins the bank’s other work involving AI and digital finance, but the application does not process payments or digital assets. It is designed for communication during banking services.

As crypto.news reported in related coverage, Japan’s AI and blockchain finance proposal supports tokenized deposits and yen stablecoins. The proposal named SMBC, MUFG and Mizuho among institutions working on settlement systems, though it is separate from the employee translation application.

PayPay’s UnionPay connection uses conventional card-linked mobile payments. Neither PayPay nor TBCASoft described the system as a cryptocurrency, stablecoin or blockchain product.

No verified market reaction could be tied specifically to either announcement. PayPay is owned by LY Corporation and SoftBank Group interests, while SMBC operates within Sumitomo Mitsui Financial Group. Neither parent company issued a filing that quantified expected revenue, costs or earnings from these deployments.

UnionPay QR payments are already available at participating PayPay locations. SMBC said its interpreter is entering phased use, but the bank provided no completion date or public access plan.