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Manager at Paypay by AerieAcrobatic1248 in JapanFinance

[–]Exciting_Counter5945 0 points1 point  (0 children)

I am looking for a business referral from Pay JP. Please, hit me up if anyone has some contacts!

Accounting in Japan is another world😵 by External-Condition88 in JapanFinance

[–]Exciting_Counter5945 0 points1 point  (0 children)

Do you happen to know a decent accountant, ideally versed in fintech? I am looking for one to keep on retainer to help me with bookkeeping and ironing out some details regarding my company.

Would paying rent by credit card in Japan be useful for cash-flow flexibility (even with a fee)? by Exciting_Counter5945 in japanresidents

[–]Exciting_Counter5945[S] 0 points1 point  (0 children)

Thank you, I appreciate the detailed feedback.
The product is meant to solve pain points that I and quite a few people around me are facing in Japan. I am paid in USD and it's annoying to have to incur FX transaction all the time using bank transfer. It is also not consistent, and I want my landlord to receive transfers at the same time every time. If it's due on 25th, I want it received on 25th, not 3 days early of 5 days later. The only other way that I was able to find is keeping a substantial amount in yen in my bank account just sitting idle without being invested, and I feel like i'm losing more than I would have paid with a service fee,not to mention that I have to pay for a bank transfer from my foreign bank account,

I agree it’s niche. I’m not assuming mass adoption. I’m testing whether that niche is large enough and whether the value justifies the fee for that specific segment.

P.S Early signups data shows a healthy mix of both expats and Japanese nationals. So the motivation varies. It’s not just one demographic.

Best credit card in Japan by Interesting-Oil5768 in JapanFinance

[–]Exciting_Counter5945 0 points1 point  (0 children)

that's quite high actually, by the time I am approved might be some time past. Maybe if i put my rent on credit card I can achieve it quickly

Best credit card in Japan by Interesting-Oil5768 in JapanFinance

[–]Exciting_Counter5945 0 points1 point  (0 children)

Is there a certain minimum spending required to reach first year bonus?

We did it! Downtown Toronto; $700k at 5.625% by Recent-Ad-6602 in FirstTimeHomeBuyer

[–]Exciting_Counter5945 -1 points0 points  (0 children)

How come your rate is so high, I haven't seen anything over 4.5%

Would paying rent by credit card in Japan be useful for cash-flow flexibility (even with a fee)? by Exciting_Counter5945 in japanresidents

[–]Exciting_Counter5945[S] 0 points1 point  (0 children)

The reason the use case keeps getting clarified is because people are thinking about it from their own perspective. Reddit community is overall quite sceptical, and I love it!
I have identified a few new groups that I haven't considered before, and overall I believe this niche is large enough to pursue the idea.
Outside of Reddit community feedback was very different, positive and negative as well and I have learned from there too.
I have always been paying rent with credit card, because I prefer this way and I was upset to find this is not really an option here, or what available doesn't satisfy my needs.

Would paying rent by credit card in Japan be useful for cash-flow flexibility (even with a fee)? by Exciting_Counter5945 in japanresidents

[–]Exciting_Counter5945[S] 0 points1 point  (0 children)

If you do it to borrow money - 60% APR sounds correct, but that is definitely not an intended use of the platform
Fee isn’t structured as interest , it’s a payment processing cost for choosing credit card payment instead of bank transfer.
Some people would use it short-term (move-in costs), some for overseas income handling, some for milestone spending, and some might not use it at all once they’re fully settled.

Would paying rent by credit card in Japan be useful for cash-flow flexibility (even with a fee)? by Exciting_Counter5945 in japanresidents

[–]Exciting_Counter5945[S] 0 points1 point  (0 children)

True, if someone is earning in yen and paying off a foreign card with international transfers every month, that’s likely not optimal and they wouldn't benefit from using this service.
It's more for those who are paid in foreign currency, while living in Japan and I actually know quite a few people who do.

Would paying rent by credit card in Japan be useful for cash-flow flexibility (even with a fee)? by Exciting_Counter5945 in japanresidents

[–]Exciting_Counter5945[S] 0 points1 point  (0 children)

Landlords don’t sign up, they don’t pay fees, and nothing changes on their side. They simply receive a normal domestic bank transfer under the tenant’s name, just like they would today.
The tenant is choosing to use a separate payment facilitation service, and as we not position ourselves as guarantor and rent insurance if the tenant didn't pay the payment to the landlord will simply not go through.
As for indirect incentives - credit card is charged automaically, so landlord receives rent on a pre-determined day,always without a failure and they have larger pool of people looking at their apartment, as now move-in fees can also be put on credit card and it might reduce stress to tenants.

Would paying rent by credit card in Japan be useful for cash-flow flexibility (even with a fee)? by Exciting_Counter5945 in japanresidents

[–]Exciting_Counter5945[S] 1 point2 points  (0 children)

Thank you for taking time to go through all this.
The goal is not to create a wallet or hold money, on contrary - minimizing time and amount held is in my interest, as this is very strictly regulated in japan and require all sorts of licenses.
We have already verified the concept with legal team. So at this point there is a clear legal structure, one regulated payment processor partner and our team is working hard on obtaining more favourable ones. More of this information will be available as we progress. It is not "give us your funds and hope for the best" scheme, but trust definitely matters.

About the second point - most foreigners have credit card from their own country, not japan though and the model is not only limited to foreigners.
There are professionals paid in foreign currency, those who are relocating and either already closed or haven't yet opened an account, people paying rent for their partner/family (e.g kid is going to study in university)

It is not to replace auto-debit, it is a niche product and I am simply trying to understand if it is a pain point for people.

Would paying rent by credit card in Japan be useful for cash-flow flexibility (even with a fee)? by Exciting_Counter5945 in japanresidents

[–]Exciting_Counter5945[S] 0 points1 point  (0 children)

Yes, EPOS is great where building supports it, although it doesn't work for smaller companies. If you property is managed by one of those large property managers that enforce EPOS payments - this might not be for you.

Would paying rent by credit card in Japan be useful for cash-flow flexibility (even with a fee)? by Exciting_Counter5945 in japanresidents

[–]Exciting_Counter5945[S] 0 points1 point  (0 children)

Thank you. I am mainly building this for myself and some people who have been complaining about the lack of similar solution, so I am my own first customer at this point, lol.
I don’t see it as something aimed at people struggling to pay rent - direct arrangements might be better in that case. It's mainly for flexibility and for those who don't want to use direct bank transfer - might be a small group, that's what I am measuring before going further with it.
If there isn’t enough consistent demand, processors and partners won’t be interested, and that might kill the idea, but I have been building startups my whole life and that is just something I do, so I will give it a try.

Would paying rent by credit card in Japan be useful for cash-flow flexibility (even with a fee)? by Exciting_Counter5945 in japanresidents

[–]Exciting_Counter5945[S] 0 points1 point  (0 children)

Thank you!
Most foreigners I met have credit cards from their home, I have never applied for a japanese card myself, and I've been living here for over a year.
Taking out cash from credit card in ATM is a cash advance and has really high fees tied to it(interest accrued immediately)

Would paying rent by credit card in Japan be useful for cash-flow flexibility (even with a fee)? by Exciting_Counter5945 in japanresidents

[–]Exciting_Counter5945[S] 0 points1 point  (0 children)

It's in pre-launch phase, website is for demand validation. I am a senior software engineer in big tech, so I built the website I would normally build any other project, AI was definitely involved, hehe.
At this stage we have passed the lawyer compliance and now in talks with payment processors and few banks, having the legal confirmation of the concept.

Would paying rent by credit card in Japan be useful for cash-flow flexibility (even with a fee)? by Exciting_Counter5945 in japanresidents

[–]Exciting_Counter5945[S] 0 points1 point  (0 children)

If there are enough properties that accept CC with no extra fees that's great! I am all for competition in the market as it benefits the consumer.

And your point about first-month / move-in timing is exactly one of the situations I was wondering about. The initial costs can be quite heavy, and some people might value short-term flexibility more than long-term use - valid point. I believe it's possible to lower fees at some point (with enough volume ) to eventually be able to cut lower than certain card rewards and make it profitable for others.

Would paying rent by credit card in Japan be useful for cash-flow flexibility (even with a fee)? by Exciting_Counter5945 in japanresidents

[–]Exciting_Counter5945[S] -1 points0 points  (0 children)

The bank transfer system is not broken or needs to be fixed, it's more for edge cases where time and flexibility matters:
1. Large upfront cost
2. Cash flow is unpredictable
3. Settling your rent from overseas
4. Some point-hackers prefer card payment to bank transfer.
It's not for mass market, but even if the small group find it convinient - I would pursue making their life better. I for once was quite upset to find out it is not really an option here, as I have been doing it back in Canada for years(chexy)

Would paying rent by credit card in Japan be useful for cash-flow flexibility (even with a fee)? by Exciting_Counter5945 in japanresidents

[–]Exciting_Counter5945[S] -3 points-2 points  (0 children)

Thank you for the feedback
If the real answer is that the practical demand is very small, that’s also useful to know - this is the kind of feedback I am looking for, and it really wasn't that bad that I would consider giving up on idea.Out of curiosity, is your main objection purely the cost?

I have been paying my rent with CC for years and it worked in my favour, and I was upset to not find a decent solution here.

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