Help Article

How does PayPal support crowdfunding in Japan?

We support crowdfunding by offering a more convenient and secure way to accept payments, helping you make your idea a reality.
We’d love to help you have a more successful campaign. We can do this by:

  • Engaging you early in the process. 
  • Providing you with upfront guidelines and expectations.
  • Offering a flexible, safer, and more secure payment option.
  • Keeping fees low.

What types of crowdfunding campaigns does PayPal support? 
We generally support most reward-based crowdfunding models in Japan. Campaign submissions need to undergo reviews to ensure the campaign structure is compliant with Japanese regulations. We support crowdfunding by offering low fees and providing a flexible, safer and more secure payment option.

Some additional information:

  • Reward-based funding: A crowdfunding campaign that offers non-monetary rewards related to their product or service. Rewards should be tangible items derived from the results of the campaign itself, such as mugs, t-shirts, or calendars.
  • Key requirements: Campaign owners need to set a target funding goal (specific amount) and collection deadline or timeframe. Cancellation of contributions during the campaign period must be permitted. If the targeted amount is not achieved, campaign owners should halt the project and refund their contributors (applying our Preapproval API).

What types of crowdfunding campaigns are NOT supported by PayPal? 
Personal and Charitable fundraising, Lending and Equity-based campaign models are currently not supported in Japan.

Some additional information:  

  • Personal fundraising includes things like raising money for personal or family medical bills, funeral expenses, education, or vet bills.
  • Charitable fundraising includes donation-based campaigns to support organizations such as registered charities, schools and sports teams, or to provide support to other individuals. These campaigns are typically performed via:
    • Monetary donations where all the money goes to the charity or group
    • Merchandise sales where all, or a portion, of the proceeds is given to the charity or group
  • Lending-based campaigns involve individuals contributing to a loan package where the campaign owner borrows from the package promising to pay back investors, usually with interest.
  • Equity-based campaigns involve individuals receiving some sort of equity or security in the company for their contribution. 

PayPal doesn’t support campaigns that would violate our Acceptable Use Policy or activities that violate any local law, statute, ordinance, or regulations such as:

  • Currency exchange
  • Refinancing debts
  • Lotteries and gambling
  • Get rich quick schemes
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