The Group’s operating segments are components of the Group that engage in business activities from which they may earn revenues and incur expenses, and those components' discrete financial information is available. Such operating segments engage in business activities that earn revenues and incur expenses and the operating segments are subject to regular review by the Chief Executive Officer (“CEO”), who is the Group’s Chief Operating Decision Maker (“CODM”), in deciding how to allocate resources and in assessing performance.

Accordingly, the Group has two operating segments, Payment segment and Financial service segment, which are also reportable segments that are determined based on the nature of services as described below. The reportable segments were revised from PayPay segment and PayPay Card segment to Payment segment and Financial service segment due to the change of segment management classifications triggered by the business combinations of PayPay Securities Corporation and PayPay Bank Corporation, which are described in Note 7, Business Combinations.

The Payment segment mainly consists of PayPay Corporation and PayPay Card Corporation. This segment includes payment settlement services and related services offered through our PayPay app and credit payment settlement services such as revolving and installment payment options and cash advances.

The Financial service segment mainly consists of PayPay Bank Corporation, PayPay Securities Corporation, and Credit Engine, Inc. This segment includes financial service such as internet banking services, securities intermediary services and PayPay Point investment-related services, and loan management services.

The Group’s CODM primarily uses revenue and operating profit or loss to allocate resources and assess performance. The Group’s segment profit or loss for each reportable segment is prepared in the same basis as the Group’s consolidated financial statements. The total of individual segment profit or loss is equivalent to operating profit or loss presented on the Group’s Consolidated Statements of Profit or Loss.

Segment financial information presented below does not include assets or liabilities, as the Group's CODM does not allocate resources or assess performance based on such information.

Inter-segment transaction prices are determined in the same manner as arm's length transactions with external customers.


For the year ended March 31, 2024
	(In millions of yen)
	Payment			Financial service			Inter-segment eliminations			Consolidated
Transaction and service income
Revenue from external customers		149,310			24,817			—			174,127
Inter-segment revenue		823			2,081			(2,904	)		—
Total transaction and service income		150,133			26,898			(2,904	)		174,127
Interest income		59,013			14,871			—			73,884
Gains (losses) on financial instruments		405			4,236			—			4,641
Other operating income		1,756			203			—			1,959
Total revenue		211,307			46,208			(2,904	)		254,611
Operating expenses (1)		(215,084	)		(42,420	)		2,904			(254,600	)
Segment profit (loss) (2)		(3,777	)		3,788			—			11

(1)

For information on depreciation and amortization expenses, see Note 33, Operating Expenses.

(2)

The total of segment profit (loss) is equivalent to profit before tax in the Consolidated Statements of Profit or Loss for the year ended March 31, 2024.


For the year ended March 31, 2025
	(In millions of yen)
	Payment			Financial service			Inter-segment eliminations			Consolidated
Transaction and service income
Revenue from external customers		176,597			26,998			—			203,595
Inter-segment revenue		1,454			1,362			(2,816	)		—
Total transaction and service income		178,051			28,360			(2,816	)		203,595
Interest income		68,623			19,819			—			88,442
Gains (losses) on financial instruments		276			5,253			—			5,529
Other operating income		1,304			208			—			1,512
Total revenue		248,254			53,640			(2,816	)		299,078
Operating expenses (1)		(217,898	)		(48,486	)		2,816			(263,568	)
Segment profit		30,356			5,154			—			35,510

(Reconciliation to profit before tax)
Share of loss of investments accounted for using the equity method											(549	)
Profit before tax											34,961

(1)

For information on depreciation and amortization expenses, see Note 33, Operating Expenses.


For the year ended March 31, 2026
	(In millions of yen)
	Payment			Financial service			Inter-segment eliminations			Consolidated
Transaction and service income
Revenue from external customers		220,770			30,271			—			251,041
Inter-segment revenue		1,124			870			(1,994	)		—
Total transaction and service income		221,894			31,141			(1,994	)		251,041
Interest income		84,574			32,674			(760	)		116,488
Gains (losses) on financial instruments		2,327			7,923			—			10,250
Other operating income		2,422			628			(167	)		2,883
Total revenue		311,217			72,366			(2,921	)		380,662
Operating expenses (1)		(246,722	)		(56,779	)		2,921			(300,580	)
Segment profit		64,495			15,587			—			80,082

(Reconciliation to profit before tax)
Share of loss of investments accounted for using the equity method											(137	)
Profit before tax											79,945

(1)

For information on depreciation and amortization expenses, see Note 33, Operating Expenses.

Almost all revenues from external customers of the Group were generated in Japan, which is the Company’s country of domicile, for the years ended March 31, 2024, 2025 and 2026. In addition, the assets of the Group were primarily located in Japan, as of March 31, 2025 and 2026.

The services provided and the amount of revenue are described in revenue section within Note 3, Material Accounting Policies and Note 30, Revenue.

There are no customers that individually accounted for more than 10% of the Group's revenues during the year ended March 31, 2024, 2025 and 2026.