AirWORK Payroll - a service that simplifies monthly transfers - launches today Application to be a service provider for digital wage payments also submitted by Recruit subsidiary

This document is a translation of a press release issued by Recruit Co., Ltd. on April 3rd, 2023 (JST) and is provided as a reference material. If there is any discrepancy between this translated version and the original Japanese version, the original Japanese version prevails.

Recruit is proud to announce the launch of AirWORK Payroll, a payroll service that simplifies monthly payroll transfers. The service will be available starting today. AirWORK Payroll allows businesses to remit wages to registered employees in bulk.

In addition, a government ordinance which was revised to allow for digital payment of wages came into effect on April 1, 2023. In accordance with the ordinance, Recruit MUFG Business (RMB), a subsidiary jointly owned by Recruit and MUFJ Bank Ltd., has applied today to the Ministry of Health, Labor and Welfare to be designated as a Fund Transfer Service Provider to handle digital wage payments. Once approved, employees will be able to set up RMB’s payment brand COIN+ to receive advance wage payments using AirWORK Payroll.

Overview of AirWORK Payroll

One-click transfers and advance payment option

AirWORK Payroll is a service that handles monthly payroll transfers. With just one click, businesses can transfer wages for all of their employees in bulk on the designated payment date each month. Employees also have the option to request payments for work already completed ahead of the designated payday. The service fee (including transfer fees) is flat, regardless of the payee’s financial institution. In addition, employees can change their bank details themselves, eliminating the need for the business to re-enter the information every time there is a change.

After signing up for a service account, employees need to register their bank details in advance to receive their monthly wages via AirWORK Payroll.

Currently, the service is only available to a limited number of AirPAY merchants.

Background

Eliminating payroll hassles for both employers and employees

We strive to help business owners operate their business as they envision them and create stores that are uniquely their own. Based on that vision, Air BusinessTools, including AirWORK Payroll, were designed with the mission of reducing the burden of tedious business tasks.

Many small and medium-sized businesses struggle with payroll tasks, having to hand out paychecks to each individual employee in cash or making dozens of monthly ATM transfers. If payroll data is not linked with workers’ attendance information, the businesses must calculate the wages due. Other issues include struggles with online banking and expensive transfer fees.

There are also frustrations on the employee side: Some businesses only pay wages in cash, so employees are unable to receive their paychecks via bank transfer. If they are in urgent need of money, it may be difficult to ask their employer to pay for the work they have done ahead of payday, while some businesses do not even accept advance payment requests. We believe that AirWORK Payroll can make the payroll process faster, simpler, and more flexible.

Digital payment of wages approved starting FY2023

Until now, only two forms of salary payment were permitted in Japan: cash and bank transfer (with the consent of the worker). In recent years, with more widespread usage of cashless payment and the diversification of remittance services, there is a growing demand for wages to be paid in digital currencies. On April 1, 2023, a government ordinance was revised to allow the digital payment of wages to the accounts of official Fund Transfer Service Providers designated by the Minister of Health, Labor and Welfare. This came into effect in FY2023.

The Recruit Group has applied to the Ministry of Health, Labor and Welfare today for RMB to be a Fund Transfer Service Provider. This will allow us to meet the requirements for digital currency salary payments. Once approved, employees will be able to use AirWORK Payroll to set up RMB’s payment brand COIN+ to receive advance wage payments, in addition to the option of using their bank accounts.

AirWALLET, provided by RMB, is an app for digital account management and payment by COIN+. By linking digital accounts with various bank accounts, users can seamlessly withdraw their salary received through COIN+ to their bank account, and send and receive money between apps, all free of charge. By expanding payment methods to include digital accounts, we are providing an array of money-related options and solutions to both employers and employees.

About Air BusinessTools

Air BusinessTools are Recruit's business and management support services including AirREGI, AirPAY and AirSHIFT. The tools reduce the time, effort, and costs associated with analog business operations, from reservation and reception management, accounting, and payment, to recruitment and shift management. With 709,000 accounts, ^*1 more stores use AirREGI than any other POS register app. ^*2 AirPAY is a payments service for businesses that supports 56 types ^*3 of payment brands. Meanwhile, other services continue to add yet more accounts and member stores across Japan. They come from a wide range of sectors, including restaurants, retail, and services. They also have cross-generational appeal, with users ranging from high school teenagers running a school culture festival to a fruit-and-vegetable shop owner in their 80s. With a single AirID, ^*4 a user can access all Air BusinessTools. This single, user-friendly service combines different apps and web services into one. Using the suite of services in Air BusinessTools can dramatically streamline daily operations. Recruit will continue to support business owners in running their business the way they envision it and creating a store that is uniquely their own.

About COIN+ and AirWALLET

COIN+ is a payment service offered by RMB. The handling fee is set at 0.99% (excluding tax), lower than the 3-5% fee charged by most cashless payment methods, reducing the financial burden on merchants. COIN+ can be integrated into third-party apps to provide a payment function, allowing users to make payments using a QR code in affiliated stores.

AirWALLET is a smartphone application provided by RMB. With this all-in-one app, users can manage digital accounts, transfer money, and make cashless payments. By linking their digital account with their deposit account at MUFJ Bank or other banks using AirWALLET, users can make deposits and withdrawals between bank and digital accounts, and send and receive money between apps seamlessly and free of charge. AirWALLET also has a built-in COIN+ payment function, which allows users to make QR code payments with their COIN+ balance at affiliated stores.

Click here to read the original press release.