Payment Services Act

No person may provide electronic payment instruments services unless the person is registered by the Prime Minister.

Pursuant to the provisions of Cabinet Office Order, a person who intends to be registered referred to in the preceding Article must submit a written application for registration containing the following particulars to the Prime Minister:

trade name and address;

amount of capital;

name and location of the business office pertaining to the electronic payment instruments services;

name of company director and company auditor (company director in cases of a company with audit and supervisory committee, etc.; company director and executive officer in cases of a company with nominating committee, etc.; and persons equivalent thereto pursuant to laws and regulations of a foreign state in cases of a foreign electronic payment instruments service provider);

in cases of a company with accounting advisors, names of accounting advisors;

in cases of a foreign electronic payment instruments service provider, name of the representative person in Japan;

the categories of business of electronic payment instruments services (meaning the electronic payment instruments-related business and the category of business related to the act set forth in Article 2, paragraph (10), item (iv); the same applies in Article 62-7, paragraph (1), Article 62-26, paragraph (2), and Article 107, item (ix));

if the service provider engages in the electronic payment instruments-related business, the name of the electronic payment instrument handled and the trade name or name and address of the person that issues the electronic payment instrument;

if the service provider engages in the business related to the act set forth in Article 2, paragraph (10), item (iv), the trade name and address of the funds transfer service provider referred to in that item;

details and means of the electronic payment instruments services;

if part of the electronic payment instruments services is entrusted to a third party, the details of the business pertaining to the entrustment and the name or trade name or other name and address of the third party to whom the electronic payment instruments services are entrusted;

type of businesses, if the service provider conducts other businesses; and

other particulars specified by Cabinet Office Order.

A document in which the applicant pledges that the applicant does not fall under any of the items of Article 62-6, paragraph (1), documents concerning finance, documents containing particulars concerning the establishment of a system for ensuring the provision of the electronic payment instruments services in a proper and steady manner, and other documents specified by Cabinet Office Order must be attached to the written application for registration referred to in the preceding paragraph.

The Prime Minister must, when an application for registration referred to in Article 62-3 is filed, register the following particulars in the register of electronic payment instruments service providers, except when refusing the registration pursuant to the provisions of paragraph (1) of the following Article:

particulars listed in the items of paragraph (1) of the preceding Article; and

date of registration and registration number.

If the Prime Minister registers the particulars under the provisions of the preceding paragraph, the Minister must notify the applicant to that effect without delay.

The Prime Minister must make the register of electronic payment instruments service providers available for public inspection.

The Prime Minister must refuse registration when an applicant falls under any of the following items, or a written application for registration or its accompanying documents contain false statements about important particulars, or lack any statement about important particulars:

a person other than a stock company or a foreign electronic payment instruments service provider (limited to a foreign company that has a business office in Japan);

a foreign electronic payment instruments service provider that is a corporation and that does not have a representative person in Japan (limited to a person who is domiciled in Japan);

a corporation lacking a sufficient financial foundation that satisfies the requirements specified by Cabinet Office Order as those found to be necessary for the provision of the electronic payment instruments services in a proper and steady manner;

a corporation which has not established a system that is necessary for the provision of the electronic payment instruments services in a proper and steady manner;

a corporation which has not established a system that is necessary for ensuring compliance with the provisions of this Chapter;

a corporation which has not joined a certified association for payment service providers whose members (meaning the members specified in Article 87, item (ii)) are the electronic payment instruments service providers (limited to a corporation engaging in the electronic payment instruments-related business), and which has not prepared internal rules that have contents equivalent to the articles of incorporation or other rules (limited to those concerning the protection of users of electronic payment instruments services or the provision of electronic payment instruments services in a proper and steady manner) of the certified association for payment service providers or has not established a system for ensuring compliance with those internal rules;

a corporation which intends to use a trade name that is identical to the one currently being used by another electronic payment instruments service provider or that may be misidentified as another electronic payment instruments service provider;

a corporation which received an order to discontinue specified funds transfer services (meaning the specified funds transfer services prescribed in Article 36-2, paragraph (4); the same applies hereinafter) pursuant to the provisions of Article 56, paragraph (1) as applied pursuant to Article 37-2, paragraph (2) following the deemed replacement of terms, received an order to discontinue electronic payment instruments services pursuant to the provisions of Article 62-22, paragraph (1) as applied pursuant to Article 62-8, paragraph (2) following the deemed replacement of terms, or received an order to discontinue the same type of services as these services pursuant to the provisions of laws and regulations of a foreign state that are equivalent to this Act or the Banking Act, etc., and for which five years have not elapsed from the date of the order;

a corporation which has been punished by a fine (including a punishment pursuant to laws and regulations of a foreign state equivalent to this) for violating the provisions of this Act, the Financial Instruments and Exchange Act, the Banking Act, etc., the Act on Engagement in Trust Business by Financial Institutions, the Act Regulating the Receipt of Contributions, the Receipt of Deposits, and Interest Rates, or the Trust Business Act, or laws and regulations of a foreign state equivalent thereto, and for which five years have not elapsed from the day on which the execution of the sentence ended or from the day on which the sentence ceased to be executed;

a corporation whose other business is found to be against the public interest;

a corporation that employs a person who is a company director, company auditor, executive officer, or accounting advisor (meaning a person equivalent thereto under laws and regulations of a foreign state or representative persons in Japan in cases of a foreign electronic payment instruments service provider; hereinafter referred to as a "company director, etc." in this Chapter) falling under any of the following items:

a person specified by Cabinet Office Order as being unable to properly perform their duties pertaining to electronic payment instruments services due to a mental or physical disorder;

a person who has not had their rights restored after receiving an order to commence bankruptcy proceedings, or a person equivalent thereto pursuant to laws and regulations of a foreign state;

a person who has been sentenced to imprisonment or heavier punishment (including equivalent punishment pursuant to laws and regulations of a foreign state), and for whom five years have not elapsed from the day on which the execution of the sentence ended or from the day on which the sentence ceased to be executed;

a person who has been punished by a fine (including a punishment pursuant to laws and regulations of a foreign state equivalent to this) for violating the provisions of this Act, the Financial Instruments and Exchange Act, the Banking Act, etc., the Act on Engagement in Trust Business by Financial Institutions, the Act Regulating the Receipt of Contributions, the Receipt of Deposits, and Interest Rates, the Act on Prevention of Unjust Acts by Organized Crime Group Members, or the Trust Business Act, or laws and regulations of a foreign state equivalent thereto, and for whom five years have not elapsed from the day on which the execution of the sentence ended or from the day on which the sentence ceased to be executed; or

if an electronic payment instruments service provider had its registration referred to in Article 62-3 revoked pursuant to the provisions of Article 62-22, paragraph (1) or (2), or a corporation had the registration of the same type in a foreign state (including other administrative dispositions similar to the registration) revoked pursuant to the provisions of laws and regulations of the foreign state equivalent to this Act, a person who was a company director, etc. of the corporation at any time during the thirty days prior to the date of the revocation and for whom five years have not elapsed from the date of revocation or a person similar thereto specified by Cabinet Order.

When the Prime Minister refuses the registration pursuant to the provisions of the preceding paragraph, the Minister must notify the applicant to that effect by indicating the reason without delay.

When an electronic payment instruments service provider intends to change any of the particulars set forth in Article 62-4, paragraph (1), item (vii) (limited to changes due to its intention to provide a new type of business), the electronic payment instruments service provider must have the change registered by the Prime Minister, pursuant to the provisions of Cabinet Office Order.

The provisions of the preceding three Articles apply mutatis mutandis to the registration of change referred to in the preceding paragraph. In this case, the term the "following particulars" in Article 62-4, paragraph (1) is replaced with the "particulars pertaining to the change", the term "any of the items of Article 62-6, paragraph (1)" in paragraph (2) of that Article is replaced with "any of the items of Article 62-6, paragraph (1) (excluding items (i), (ii) and (vii) through (xii))", the term the "following particulars" in Article 62-5, paragraph (1) is replaced with the "particulars pertaining to the change to the particulars set forth in paragraph (1), item (vii) of the preceding Article," and the term "any of the following items" in paragraph (1) of the preceding Article is replaced with "any of the following items (excluding items (i), (ii) and (vii) through (xii))".

When an electronic payment instruments service provider intends to change any of the particulars set forth in Article 62-4, paragraph (1), item (viii) through (x) (excluding cases specified by Cabinet Office Order as being less likely to weaken the protection of users of electronic payment instruments services or hinder the provision of electronic payment instruments services in a proper and steady manner), the electronic payment instruments service provider must notify the Prime Minister to that effect in advance.

If any of the particulars set forth in the items of Article 62-4, paragraph (1) are changed (excluding the case in which registration of change has been made under the provisions of paragraph (1) and cases in which a notification has been filed under the provisions of the preceding paragraph), the electronic payment instruments service provider must notify the Prime Minister to that effect without delay.

If the Prime Minister accepts a notification under the provisions of the preceding two paragraphs (including the case where a notification under the provisions of the preceding paragraph is deemed to have been filed pursuant to the provisions of Article 62-25, paragraph (9)), the Minister must register the particulars of the notification in the register of electronic payment instruments service providers.