JPYC Details Fee-Free Payments Model to Japan Fair Trade Commission

JPYC said it provided the Japan Fair Trade Commission with information on competition in Japan’s cashless-payment market and its payment model on Sept. 14, as some merchants weigh discounts tied to lower payment costs.

More than 150 restaurants, retailers, farm-direct outlets, mobile businesses and online merchants have adopted or introduced JPYC since the yen-pegged stablecoin launched in October 2025.

Customers and merchants can transfer value directly on-chain, while JPYC does not charge merchants a merchant fee. Some merchants have used or are considering using those savings to offer discounts for JPYC payments or waive shipping fees.

The merchants have raised concerns that those practices could conflict with existing credit-card rules in Japan. The rules bar surcharges, cash discounts and efforts to steer customers toward another payment method.

JPYC said merchants should be free to choose which payment methods they accept and how they set prices. The company also said returning lower payment costs to customers would promote competition.

JPYC is classified as an electronic payment method under Japan’s Payment Services Act. Users can issue or redeem the token through the JPYC EX platform after completing know-your-customer checks.