Merpay
Merpay is the fintech subsidiary of Mercari, Inc., operating a smartphone payment and credit service embedded in the Mercari app. It serves Japanese consumers — particularly Mercari sellers and Gen Z — with QR/iD payments, the Mercard JCB credit card (5M+ issued), AI-scored BNPL and small loans, and embedded banking via Mercari Bank.
- Company typePrivate
- Founded2019
- HeadquartersTokyo, Japan
- Headcount1–10
- GTM typeB2C
- OfferingServices
What Merpay does
Merpay is a Japanese fintech operating as a wholly-owned subsidiary of Mercari, Inc. The company provides a smartphone payment service embedded directly within the Mercari flea market application, enabling users to spend their Mercari sales proceeds at 236万+ physical merchant locations via QR code, iD contactless, and net payment rails, with additional acceptance at 5,300万+ JCB merchant locations globally through the Mercard product. The core technical differentiator is a proprietary AI-based credit scoring system that determines credit limits and interest rates from Mercari transaction history rather than traditional income or attribute data — a capability explicitly validated by Japanese regulators under the revised Installment Sales Act.
The product portfolio spans payments, credit, lending, and embedded finance: Merpay (core payment), Mercari Credit (post-pay/BNPL, formerly Merpay Smart Payment), Merpay Smart Money (small loans up to 200,000 yen at 3.0–15.0% APR), Mercard and Mercard Gold (JCB credit cards with up to 3M yen limits and 5M+ cards in force as of June 2025), Mercard ETC, a virtual Mastercard, Mercari Bank (BaaS with Minna no Ginko launched December 2025), Mercari Gift, and adjacent services such as home internet/electricity bundles and a Point Mall shopping portal. Distribution is product-led through the Mercari app's 22+ million monthly active users, supplemented by partnerships with Amazon.co.jp, Apple, PlayStation Store, DAZN, and WeChat Pay.
The business model draws revenue from multiple vectors: merchant transaction fees on code/iD/net payments, credit card interchange, BNPL and installment handling fees at a 15.0% effective annual rate, small-loan interest, point-program economics, and increasingly ancillary services like utilities and gift cards. The primary customer segment is individual consumers — particularly Mercari users and Gen Z/young adults — with merchants as a secondary business-unit segment. Pricing is structured around a free standard Mercard with paid Gold tier (5,000 yen/year, waived at 500K yen spend) and usage-based credit pricing tied to AI-scored risk.
Merpay firmographics
Firmographics- Name
- Merpay
- Legal name
- 株式会社メルペイ
- Website
- https://jp.merpay.com
- Company type
- Private
- Founded year
- 2019
- Operating status
- Operating
- Headcount range
- 1–10 employees
- Short description
- Merpay is the fintech subsidiary of Mercari, Inc., operating a smartphone payment and credit service embedded in the Mercari app. It serves Japanese consumers — particularly Mercari sellers and Gen Z — with QR/iD payments, the Mercard JCB credit card (5M+ issued), AI-scored BNPL and small loans, and embedded banking via Mercari Bank.
- Ownership category
- akta.pro rank
Merpay industry classification
Industry- Product category
- Consumer Mobile Payments
- NAICS
- Credit Card Issuing (522210), Consumer Lending (522291), Sales Financing (522220)
- SIC
- Personal Credit Institutions (6141)
- akta.pro primary industry
- QR Code Payments Wallets (FSAMAEAC)
- akta.pro secondary industries
- Merchant-Integrated BNPL (Checkout POS Financing) (FSAGAIAA), Subprime / Credit-Building Credit Cards (FSAKABAJ), Retail Credit (Closed-End) & Promotional Financing (0%/Deferred Interest) (FSAKAFAF)
Keywords
Where Merpay is headquartered
LocationHeadquarters
- HQ city
- Tokyo
- HQ country
- Japan
- HQ region
- Asia
Offices2 records
Markets served
Merpay business model
Business model- GTM type
- B2C
- Offering type
- Services
- Cost components
- Personnel, Technology or R&D, Marketing or Sales, Operations, Infrastructure
Revenue model
- Payment Transaction Fees: Merpay earns transaction fees from merchants (加盟店) when users make payments using Merpay code payments, iD payments, or net payments at partner stores.
- Credit Services (Mercard, Merpay Smart Payment): Revenue generated from credit card transactions, installment payment fees, and revolving credit interest. Merpay Smart Payment (あと払い) charges fees for deferred payment options.
- Annual Fee - Merpay Smart Money: Small loan service (少額融資) with interest rates ranging from 3.0-15.0% annual rate, determined by Mercari usage history. Upper limit of 200,000 yen per transaction.
- Point Program: Mercari points system where merchants can offer promotional campaigns. While points themselves are not direct revenue, they drive user engagement and transaction volume.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Subscription | Annual | Mercard annual fee: Free (年会費永年無料) |
| Subscription | Annual | Mercard Gold annual fee: 5,000 yen/year (waived with 500,000 yen annual spending) |
| Usage-based | Monthly | Merpay Smart Money interest rate: 3.0-15.0% annual rate |
| Transaction based/ take rate | Monthly | Installment payment handling fee: 15.0% effective annual rate |
Go-to-market motion2 records
Distribution channels6 records
Marketing channels6 records
Merpay product offering
Product offeringCore offering
Merpay provides a smartphone-based payment and consumer finance platform embedded in the Mercari app, enabling users to pay with QR code, iD contactless, and net payment methods using Mercari sales proceeds, bank-charged balance, points, or post-pay credit (Mercari Credit). Its product line extends to the Mercard JCB credit card (standard and Gold tiers), Merpay Smart Money small loans up to 200,000 yen, and embedded banking via Mercari Bank (BaaS partnership with Minna no Ginko). Credit limits across all offerings are determined by a proprietary AI credit-scoring system trained on the user's Mercari marketplace transaction history.
Product overview
Merpay operates as a comprehensive financial services ecosystem built on top of the Mercari flea market platform. The core offering is the Merpay smartphone payment service (iD contactless, QR code, net payments) that allows Mercari sellers to spend their sales proceeds directly. This core is augmented by Mercari Credit (formerly Merpay Smart Payment, rebranded 2025) for post-pay purchases with AI-based credit limits determined by Mercari usage history, and Merpay Smart Money for small loans (up to 200,000 yen) using the same AI credit assessment. The product portfolio extends to Mercard credit cards (standard and Gold tier) which link credit limits and rebates to Mercari activity, enabling users to manage all finances within the Mercari app. Ancillary services include Mercard ETC cards, virtual cards for online Mastercard merchants, Mercari Gift for gifting, Mercari Bank for instant free withdrawals via Minna no Ginko BaaS partnership, home internet/electricity utilities, a point exchange network, and a shopping portal (Point Mall). The company also holds Japan's first 'Designated Comprehensive Credit Purchase Intermediary' certification enabling AI-driven credit decisions based on marketplace behavior rather than traditional income criteria.
Differentiator
Problem solved
Functional benefit
Brands
- Mercard: A credit card service provided by Merpay, Inc. that determines credit limits based on Mercari usage history. Available in white and black designs.
- Mercard Gold
- Merpay Smart Money
Products and services
- Merpay Smartphone Payment Service Core smartphone payment service embedded in the Mercari app, enabling users to pay at 2.36M+ physical and online merchants via QR code, iD contactless, and net payment using Mercari sales proceeds, bank-charged balance, or post-pay credit (Mercari Credit).
- Mercari Credit (formerly Merpay Smart Payment) Post-pay/BNPL service (formerly 'Merpay Smart Payment', rebranded 'Mercari Credit' around 2025) enabling charge-free deferred payment at Mercari and partner merchants, with credit limits set by AI-based assessment using Mercari transaction history. Supports next-month payment, installment payments, and auto credit top-up for balance shortfalls.
- Merpay Smart Money Small consumer loan product offering up to 200,000 yen with interest rates of 3.0–15.0% APR determined by AI-based credit scoring on the user's Mercari marketplace behavior. Repayment is collected via Mercari balance or linked bank account.
- Mercard Credit Card JCB credit card linked to Mercari, with credit limits determined by Mercari usage history rather than traditional income verification. Permanently free annual fee; 1–4% point rebate on Mercari purchases and 1% elsewhere; managed entirely within the Mercari app with real-time notifications and numberless card design.
- Mercard Gold Credit Card Premium gold-tier credit card with up to 3,000,000 yen credit limit and up to 2% effective point rebate at physical stores via base plus bonus points. Annual fee 5,000 yen, waived at 500,000 yen annual spend; includes smartphone, shopping, and travel insurance plus airport lounge access.
- Mercari Bank Embedded banking service delivered via BaaS partnership with Minna no Ginko. Enables instant and fee-free withdrawal of Mercari sales proceeds to a linked bank account; bank balance visible in the Mercari app wallet; one free Seven Bank ATM withdrawal per month.
- Mercari Gift Gift card purchasing service operated in partnership with Gifty. Users can purchase gift cards from approximately 50 brands and 550 gift types (e.g., Starbucks, Amazon) using Mercari sales proceeds or points and send gifts with personalized messages via URL.
Quantifiable outcome
- 3 categories ranked #1 in 2026 Oricon Customer Satisfaction Survey for credit cards with free annual fee
- +4 more outcomes
Companies that use Merpay
Customer profileNamed customers6 records
Segments3 records
Ideal customer profiles3 records
Merpay technology and API
TechnologyTechnology focussed Yes
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Integration23 records
AI capability2 records
Feature4 records
Merpay partnerships and signals
Strategic signalScale indicators5 records
Recent moves6 records
Expansion highlights6 records
Merpay competitors and assessment
Company assessmentDirect peers
- PayPay: Japan's dominant QR-code payment wallet operated by PayPay Corporation (SoftBank/Z Holdings); directly competes with Merpay on merchant acceptance, user cashback campaigns, and offline payments, and shares the same Japan-only digital-wallet + payments-fee revenue model.
- Rakuten Pay: QR-code payment wallet within the Rakuten ecosystem, leveraging Rakuten Group's banking, credit card, and point programs; competes head-to-head with Merpay for in-store and online payments and on consumer-credit cross-sell.
- au PAY (KDDI): KDDI's QR-code payment wallet with Ponta point integration; competes with Merpay on in-store payment acceptance and consumer engagement programs across Japan.
- PayPay Card (formerly Yahoo! JAPAN Card): Credit card issuer within the PayPay/Z Holdings ecosystem offering revolving credit and point rewards linked to PayPay wallet usage; directly comparable to Mercard on card-issuing economics, cashback design, and parent-wallet integration.
- d払い (NTT Docomo): NTT Docomo's QR-code payment wallet tied to d Point loyalty; directly overlaps Merpay's mobile-payment, point-reward, and merchant-cashback proposition in the Japanese market.
Broad incumbents
- Affirm: US-listed BNPL/point-of-sale credit platform with merchant-integrated installment financing; comparable to Mercari Credit/Merpay Smart Payment on product mechanics and on using alternative underwriting data rather than traditional credit scores.
- Klarna: Global BNPL and embedded payments super-app offering pay-in-4, installment, and banking products; comparable to Merpay's combination of BNPL (Mercari Credit), revolving credit (Mercard), and emerging banking features (Mercari Bank).
- JCB Co., Ltd. Japan's domestic card network powering Mercard and enabling acceptance at 5,300万+ global merchants; a broader incumbent whose card-network business sits upstream of Merpay's credit-card issuing activity.
- Revolut: Multi-product fintech super-app combining payments, cards, consumer credit, and embedded banking; relevant peer for Merpay's strategic direction toward an all-in-one consumer financial app on top of a core wallet.
Emerging players
- Kyash: Japanese digital wallet and Visa-issued prepaid/virtual card focused on early adopters and online spending; overlaps Merpay's mobile-payment and consumer-credit narrative but at smaller scale and without an integrated BNPL lending product.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat6 records
Key risks6 records
Key highlights7 records
Customer concentration
Merpay social profiles
Digital presenceMerpay compliance and trust
Trust signalCompliance3 records
Merpay financial estimates
Financial estimateRevenue estimate
Valuation estimate
Merpay leadership team
Management profileNumber of profiles
Profiles9 records
Merpay funding detail
Funding detailFunding overview
Funding rounds
Investors
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Merpay M&A and investment
M&A and investmentM&A
Investments1 record
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Merpay
What does Merpay do?
Merpay provides a smartphone-based payment and consumer finance platform embedded in the Mercari app, enabling users to pay with QR code, iD contactless, and net payment methods using Mercari sales proceeds, bank-charged balance, points, or post-pay credit (Mercari Credit). Its product line extends to the Mercard JCB credit card (standard and Gold tiers), Merpay Smart Money small loans up to 200,000 yen, and embedded banking via Mercari Bank (BaaS partnership with Minna no Ginko). Credit limits across all offerings are determined by a proprietary AI credit-scoring system trained on the user's Mercari marketplace transaction history.
Is Merpay a public or private company?
Merpay is a private company. It is classified as corporate owned and is currently operating.
When was Merpay founded?
Merpay was founded in 2019. It employs 1 to 10 people.
Where is Merpay based?
Merpay is headquartered in Tokyo, Japan, in the Asia region.
How does Merpay make money?
Four revenue lines are on record. Payment Transaction Fees are the primary driver. The others are credit Services (Mercard, Merpay Smart Payment), annual Fee - Merpay Smart Money and point Program.
Who are Merpay's main competitors?
Direct peers on record are PayPay, Rakuten Pay, au PAY (KDDI), PayPay Card (formerly Yahoo! JAPAN Card) and d払い (NTT Docomo). Broad incumbents are Affirm, Klarna, JCB Co., Ltd. and Revolut. Kyash is listed as an emerging player.
Does Merpay have an API?
No public API is recorded for Merpay.
What industry is Merpay in?
Merpay's product category is Consumer Mobile Payments. Its primary akta.pro industry code is FSAMAEAC, QR Code Payments Wallets, with a secondary code of FSAGAIAA, Merchant-Integrated BNPL (Checkout POS Financing). Its NAICS code is 522210 and its SIC code is 6141.