Rakuten Pay Recurring Billing: Merchant Guide for Subscription Payments

Complete guide to Rakuten Pay recurring billing for merchants. Learn how to set up subscription payments, requirements, transaction fees, and integration with payment gateways for your Japanese subscription business.

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Last verified: January 19, 2026 (JST)

If you operate a subscription business in Japan or plan to accept recurring payments through Rakuten Pay, understanding how the recurring billing feature works becomes essential for proper implementation and realistic expectation setting. Rakuten Pay (Online Payment) V2 offers robust support for subscription and recurring payment models, potentially tapping into a customer base of approximately 100 million Rakuten members within the broader Rakuten Economic Zone. This guide explains how Rakuten Pay's recurring billing actually works in practice, what merchants need to implement it successfully, and the key benefits and limitations you should understand before committing development resources.

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What Rakuten Pay Recurring Billing Actually Is

Rakuten Pay (Online Payment) V2 represents a payment method provided by Rakuten Group, Inc. that specifically targets Rakuten members—the massive user base engaged with Rakuten's e-commerce, banking, mobile, and other services. The system allows merchants to charge customers on a recurring basis for subscriptions and ongoing services. This includes support for both fixed-term subscriptions (monthly/annual plans ending after a set period) and pay-as-you-go models (continuing indefinitely until cancellation), making it flexible enough for different business models from streaming services to meal kit deliveries.

The recurring billing system includes an "Anytime Billing" (General-purpose payment) function enabling merchants to charge customers at any predetermined interval for recurring payments without requiring manual authorization for each transaction. This feature supports 3D Secure authentication even for recurring charges, adding an extra security layer protecting both merchants from fraud and customers from unauthorized use of their payment methods.

When merchants apply for recurring billing capabilities during initial setup, the authentication process displays a 1 yen charge on the credit card verification screen. This represents purely a verification step confirming card validity—it's not an actual charge posted to the customer's account or billed to them.

How Rakuten Pay Recurring Billing Actually Works

For Merchants: Implementation Requirements

To implement Rakuten Pay recurring billing, merchants cannot integrate directly with Rakuten—instead you must work through an authorized payment gateway provider such as GMO Payment Gateway, SB Payment Service, KOMOJU, or Nuvei. These payment service providers offer integration documentation, developer APIs, and technical support for implementing Rakuten Pay V2 with subscription billing capabilities on your platform.

The setup process requires a separate application to Rakuten Payment, Inc. specifically requesting the Anytime Billing function capability. Simply signing up for standard Rakuten Pay doesn't automatically grant recurring billing access—you need explicit approval for this advanced functionality. Once approved after business verification, merchants can charge customers at any predetermined interval without requiring manual authorization for each payment. The system automatically processes recurring charges based on subscription terms configured by the merchant through the payment gateway's dashboard.

For Customers: Payment Experience

Customers using Rakuten Pay for recurring subscriptions can pay using credit cards registered with their Rakuten ID, spend Rakuten Points accumulated through other Rakuten services, or use Rakuten Cash stored value balance. The payment method gets registered once during initial subscription signup through your checkout flow, and subsequent charges happen automatically according to the billing schedule you've configured—monthly, annually, or whatever interval your business requires.

When a recurring charge processes with 3D Secure authentication enabled, customers may receive prompts to verify their identity through their credit card issuer's authentication system. This helps prevent unauthorized use of payment methods by adding a verification step beyond simple card number validation.

Setting Up Recurring Billing: Requirements and Process

For Merchants: Getting Started

Merchants interested in offering Rakuten Pay recurring billing must meet several requirements before implementation begins. First, partner with an authorized payment service provider supporting Rakuten Pay V2—you cannot implement this independently. Notable providers include SB Payment Service, GMO Payment Gateway, KOMOJU, and Nuvei, each offering different pricing structures, technical support quality, and integration documentation.

Importantly, merchants cannot use both Rakuten Pay (Online Payment) original version and Rakuten Pay (Online Payment) V2 simultaneously—only one service can be active per merchant account. Since V2 represents the newer version with better recurring billing support and more features, most merchants implementing subscription services should choose V2 from the start rather than migrating later.

After selecting your payment gateway provider, submit a separate application to Rakuten Payment, Inc. specifically requesting the Anytime Billing capability. This application process involves providing business details (company registration, business model description), expected transaction volumes to assess risk and capacity requirements, and detailed information about the subscription services you plan to offer. Rakuten evaluates these applications and may request additional documentation or clarification before approving recurring billing access.

Technical Integration: Development Requirements

Payment service providers like SB Payment Service and GMO Payment Gateway offer developer documentation and API access for integrating Rakuten Pay V2 recurring billing into e-commerce platforms, mobile apps, and custom subscription management systems. The integration process typically involves implementing the Rakuten Pay payment flow within your checkout interface, setting up webhook handlers for payment notifications (successful charges, failures, cancellations), and configuring the recurring billing schedule within the payment gateway's merchant dashboard.

Merchants should work closely with their chosen payment gateway's technical support team during implementation and testing phases. Testing thoroughly before launching to customers prevents billing issues that damage customer trust and create support headaches. Most payment gateways offer sandbox environments for development and testing before processing real customer payments.

Transaction Fees and Pricing Reality

KOMOJU Pricing Example

For merchants using KOMOJU as their payment gateway provider, Rakuten Pay transaction fees run 3.5% per transaction for standard purchases and 9% for digital downloads reflecting higher risk and lower marginal costs for digital goods. These fees apply to both one-time and recurring transactions processed through the platform, eating into margins that subscription businesses need to account for in pricing strategy.

Different payment gateway providers offer different pricing structures with varying base fees, volume discounts, and additional charges for features like refund processing or dispute handling. Merchants should compare options carefully and negotiate rates based on expected transaction volumes—enterprise-level merchants with high monthly volumes may secure volume discounts substantially reducing effective transaction costs.

Benefits of Using Rakuten Pay Recurring Billing

Access to Rakuten's Massive Ecosystem

The primary strategic advantage of offering Rakuten Pay for recurring payments emerges through access to approximately 100 million Rakuten members within the Rakuten Economic Zone—a massive customer base already familiar with the Rakuten ecosystem and comfortable using Rakuten services. These customers may show higher conversion rates when subscribing to services accepting Rakuten Pay, especially if they can use accumulated Rakuten Points for subscription payments rather than charging new expenses to credit cards.

Customer Convenience Through Ecosystem Integration

Rakuten Pay simplifies the subscription payment process for customers who already maintain Rakuten accounts. Instead of entering credit card details separately for each subscription service they sign up for, customers can leverage their existing Rakuten payment methods. This reduces checkout friction during the signup process and may improve conversion rates for subscription businesses competing in crowded markets where signup convenience affects customer acquisition.

Points Integration Creates Lock-In

Customers can use Rakuten Points to pay for recurring subscriptions, proving particularly attractive for users who accumulate substantial points through Rakuten's various services—shopping on Rakuten Ichiba, using Rakuten Mobile, banking with Rakuten Bank, or booking travel through Rakuten Travel. This creates a closed-loop ecosystem where customers are incentivized to remain within the Rakuten environment, potentially improving subscriber retention compared to generic credit card billing.

Enhanced Security Through 3D Secure

The inclusion of 3D Secure authentication for recurring billing provides enhanced security against fraudulent transactions. This protects merchants from chargebacks initiated by cardholders disputing unauthorized charges, and protects customers from unauthorized use of their payment methods by requiring verification through their card issuer's authentication system during setup and potentially during renewal processing.

Limitations and Important Considerations

Merchant Service Restrictions

One critical limitation affects service flexibility: merchants cannot use both Rakuten Pay (Online Payment) original version and Rakuten Pay (Online Payment) V2 simultaneously. Businesses must choose one version and commit to it for their integration. Rakuten Pay V2 represents the newer version with more comprehensive features including better recurring billing support, so most merchants implementing subscription services should select V2 from the outset—but this decision cannot be easily reversed once you've integrated and launched.

Payment Gateway Dependency

Merchants cannot integrate Rakuten Pay recurring billing directly—you must work through authorized payment gateway providers acting as intermediaries. This adds an additional layer between your business and Rakuten, meaning you'll pay transaction fees to both the payment gateway and Rakuten embedded in the gateway's pricing. It also means you're dependent on your payment gateway's technical infrastructure, uptime, support quality, and feature development—if your gateway experiences issues or fails to implement new features, your business suffers regardless of Rakuten's capabilities.

Separate Application Creates Approval Uncertainty

The Anytime Billing function requires a separate application and explicit approval from Rakuten Payment, Inc. beyond standard merchant account setup. This adds time to your implementation schedule—budget weeks for application submission, review, and potential back-and-forth clarification rather than assuming instant approval. Additionally, not all merchants may be approved depending on their business model, risk profile, or other factors Rakuten evaluates during review—niche business models or industries with higher chargeback risk may face approval challenges.

Limited English Documentation

While some payment gateway providers offer English documentation and support for international merchants, much of the official Rakuten Pay documentation exists primarily in Japanese. International merchants or those without Japanese language capabilities may face challenges during integration, troubleshooting, and ongoing support. Budget for translation costs or Japanese-speaking technical staff if your team lacks Japanese fluency—these hidden costs add up during development and maintenance.

Alternatives to Consider

Other Japanese ID Payment Methods

Japan offers several ID payment methods similar to Rakuten Pay, including LINE Pay (leveraging LINE's messaging app user base), PayPay (Japan's largest mobile payment service), and Merpay (integrated with Mercari marketplace). Some of these also offer recurring payment capabilities with varying levels of merchant support and integration complexity. Merchants targeting a broad Japanese customer base may want to offer multiple ID payment options rather than betting exclusively on Rakuten Pay—though each additional integration increases development and maintenance costs.

International Payment Gateways

For businesses serving international customers or preferring more standardized payment infrastructure with comprehensive English documentation, international payment gateways like Stripe, PayPal, or Braintree offer well-documented recurring billing support. These platforms provide extensive developer resources, active community support, and English-first documentation. However, these options may prove less familiar to Japanese customers focused primarily on domestic services, and they don't integrate with Rakuten Points—missing the ecosystem benefits that make Rakuten Pay attractive for Rakuten-engaged users.

Traditional Credit Card Processing

Merchants can implement recurring billing through traditional credit card processing providers without using ID payment methods at all. This approach offers maximum flexibility and works globally without regional limitations, but it misses the convenience and ecosystem benefits that Rakuten Pay provides to customers already using Rakuten services. Generic credit card billing doesn't tap into Rakuten's points economy or provide the psychological lock-in that ecosystem integration creates.

Best Practices for Merchant Implementation

Clear Communication Prevents Disputes

When implementing Rakuten Pay recurring billing, communicate billing schedules, amounts, and terms clearly to customers during the signup process. Make sure customers understand exactly when they'll be charged, how much each billing cycle will cost, and what they're paying for. Clear communication reduces customer service inquiries, prevents disputes, and minimizes chargebacks that damage merchant standing with payment processors.

Notification System Reduces Surprises

Implement a notification system alerting customers before each recurring charge processes. This can happen through email, in-app notifications, or SMS depending on your platform and customer preferences. Providing advance notice helps reduce chargebacks and customer disputes—unexpected charges trigger complaints even from legitimate subscribers who simply forgot about upcoming billing.

Easy Cancellation Builds Trust

Make it genuinely easy for customers to cancel or modify their subscriptions. Provide a clear cancellation process within your customer portal accessible without contacting support. Deliberately difficult cancellation processes lead to negative reviews, poor word-of-mouth, potential chargebacks when frustrated customers dispute charges instead of following obtuse cancellation procedures, and possible regulatory scrutiny as consumer protection agencies increasingly target subscription dark patterns.

Failed Payment Handling Preserves Revenue

Develop a graceful process for handling failed payments when recurring charges don't process successfully due to expired cards, insufficient funds, or other issues. Notify customers promptly when charges fail and provide easy options to update payment methods within your platform. Consider implementing a retry schedule for failed payments—attempting the charge again after 3 days, then 7 days, rather than immediately canceling the subscription—since temporary issues often resolve without requiring customer intervention.

Compliance Prevents Legal Issues

Ensure your recurring billing implementation complies with Japanese consumer protection laws and payment industry regulations. Japan has specific requirements around subscription disclosures, cancellation procedures, and billing transparency. Consult with legal experts familiar with Japanese e-commerce law if you're uncertain about compliance requirements—the cost of legal consultation pales compared to regulatory penalties or class action exposure from non-compliant billing practices.

The Honest Assessment

Good for businesses targeting Rakuten users? Absolutely yes. If your target customers are already active in the Rakuten ecosystem and you're running a subscription-based business model in Japan, offering Rakuten Pay recurring billing makes strategic sense. The integration with Rakuten Points and the convenience for existing Rakuten users can improve subscription conversion rates and potentially enhance customer retention through ecosystem lock-in effects.

Worth the integration effort? It depends heavily on your customer base composition. If a significant portion of your potential customers use Rakuten services regularly, the integration effort proves worthwhile despite the complexity. However, if your customer base is primarily international, not particularly engaged with Rakuten's ecosystem, or you're a small startup just launching, the added complexity and transaction fees may not justify the benefits compared to simpler payment solutions.

Not for everyone? Definitely true. Small businesses just starting out may find the separate application process, payment gateway requirements, and integration complexity too burdensome without clear customer demand. Additionally, the lack of comprehensive English documentation creates genuine barriers for international merchants without Japanese language support on their team.

The recurring billing feature proves well-designed for the Japanese market and provides real value for businesses whose customers are already engaged with Rakuten's ecosystem. Just set realistic expectations about setup complexity, ongoing management requirements, and whether your specific customer base will actually value Rakuten Pay enough to justify the integration investment.

Explore Japan mobile services → https://www.japanmobileguide.com

Quick Reference

Aspect Details
Service Name Rakuten Pay (Online Payment) V2 - Anytime Billing
Supported Models Fixed-term subscriptions, Pay-as-you-go
Security 3D Secure authentication supported
Customer Base ~100 million Rakuten members
Payment Methods Credit cards, Rakuten Points, Rakuten Cash
Integration Method Through authorized payment gateways
Transaction Fees (KOMOJU) 3.5% per transaction, 9% (digital)
Setup Requirement Separate application to Rakuten Payment, Inc.

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