Which Is More Beneficial: Rakuten Pay or Rakuten Edy?
Both Rakuten Pay and Rakuten Edy are payment services offered by Rakuten. While they can be used at checkout, they differ in usage, recharge methods, and point reward rates.
Posted at: 2025.1.27
Differences Between Rakuten Pay and Rakuten Edy
Let’s start with a quick comparison of Rakuten Pay and Rakuten Edy.
| Feature | Rakuten Pay | Rakuten Edy |
|---|---|---|
| Prepaid Charges | ○ | ○ |
| Postpaid Payments | ○ | - |
| Rakuten Points Return | ○ | ○ |
Rakuten Edy operates as a "prepaid" payment service, requiring users to load funds in advance. On the other hand, Rakuten Pay supports both "prepaid" and "postpaid" methods, offering greater flexibility.
Both services are compatible with Rakuten Point returns, but Rakuten Pay provides higher return rates, as discussed below.
Point Return Rate Comparison: Rakuten Pay vs. Rakuten Edy
| Payment Method | Rakuten Pay | Rakuten Edy |
|---|---|---|
| Prepaid Charge Points | - | - |
| Credit Card Payments | 1% | - |
| Preloaded Balance | 1.5% | 0.5% |
| Points Payment | 1% | - |
Neither service offers point returns for loading funds. Notably, Rakuten Pay previously offered points for prepaid charges, but this was discontinued as of June 4, 2024.
When it comes to points earned at the time of payment, Rakuten Pay outperforms Rakuten Edy. Rakuten Pay provides a base rate of 1%, with an additional 0.5% return when using preloaded Rakuten Cash, resulting in a maximum of 1.5%. In contrast, Rakuten Edy offers only 0.5%.
Differences in Use Cases and Coverage
| Feature | Rakuten Pay | Rakuten Edy |
|---|---|---|
| Online Shops | ○ | × |
| Physical Stores | △ | ○ |
| Utility/Tax Payments | ○ | × |
Rakuten Edy, as an IC card-based service, is primarily used for physical store payments. Thanks to its compatibility with non-contact payment systems like transportation IC cards, it is widely accepted at numerous locations across Japan.
Rakuten Pay, a smartphone app-based service, has more limited coverage in physical stores but is steadily expanding, especially among major retailers like convenience stores and supermarkets. Additionally, Rakuten Pay shines in online shopping, where Edy cannot be used.
Rakuten Pay offers the added benefit of paying utility bills (electricity, gas) and taxes (property tax, automobile tax, residence tax) via barcode scanning, even using Rakuten Points. This feature is unavailable with Rakuten Edy.
Rakuten Pay: The Best Choice for Everyday Payments
Considering point return rates, versatility, and functionality, Rakuten Pay emerges as the best choice for most users. While Rakuten Edy remains advantageous in its broader physical store acceptance, particularly for IC card-compatible locations, the overall trend favors “Pay” services due to their growing adoption.
For daily use, Rakuten Pay’s flexibility, higher return rates, and ability to handle online and utility payments make it a more practical and rewarding choice. If you find yourself in situations where barcodes or apps are not accepted, Rakuten Edy remains a reliable backup for physical transactions.