The convergence of telecom and payments is accelerating rapidly. Carrier billing services, QR code payments, and bank-linked services from mobile carriers are evolving at a remarkable pace. This article summarizes the latest trends in the telecom and payments sector.

Evolution of Carrier Billing

Carrier billing allows users to pay for in-app purchases and online shopping alongside their smartphone usage fees. Traditionally limited to small transactions, higher spending limits and enhanced security now enable support for larger payments.

NTT Docomo’s d-payment, KDDI’s au PAY, and SoftBank’s PayPay (as a group investment) have moved beyond simple payment methods to form point-based economic ecosystems with deeper financial service integration.

Intensifying QR Code Payment Competition

In Japan’s QR code payment market, PayPay holds a dominant share, followed by Rakuten Pay, d-payment, au PAY, and Merpay. As of 2026, the merchant expansion race has settled, and companies are entering the monetization phase.

A notable development is the expansion of interoperability between different code payment services. Based on METI guidelines, mutual compatibility between different QR payment services is progressing, promising improved user convenience.

Telecom-Bank Partnerships

Telecom companies are strengthening partnerships with banks. Docomo’s acquisition of Sumishin SBI Net Bank, KDDI’s alliance with MUFG Bank, and SoftBank’s link with PayPay Bank all reflect the accelerating trend of telecom companies completing financial services within their own groups.

This integration is expected to enable new credit models and personalized financial services leveraging big data such as smartphone usage history and location information.

Payment Security Developments

Security technology evolution is another important topic in payments. Biometric authentication for payment approval, token-based card information protection, and AI-driven fraud detection systems are advancing.

The adoption of passkey authentication based on the FIDO standard is enabling password-free secure authentication, reducing reliance on traditional passwords.

Conclusion

Four major trends define the telecom and payments landscape: carrier billing evolution, QR payment monetization, telecom-bank integration, and security technology advancement. Understanding these trends will help you choose the payment services best suited to your needs.