This is an English translation of our Japanese article. The Japanese version, the Setagaya City website and the official Setagaya Pay site are authoritative. Terms change without notice and the scheme can end early once its budget is exhausted, so check the official notices before relying on any figure here.
Last updated: 2 September 2026. Based on Setagaya City's official page "Setagaya Pay initiatives for FY2026" and the terms published on the official Setagaya Pay site. Rates, caps and periods change without notice, and the scheme ends without prior notice once its budget is exhausted.
The short answer. Setagaya Pay has the lowest rate and the clearest design of any app in this series: 3% at small independent shops, 2% at convenience stores and similar, and 0% at large stores. It is built around a single idea — reward spending at neighbourhood shops and nothing else. The cap is 1,000 points a month, so at 3% the cap fills at 33,333 yen of spending. In exchange, the period is long: 1 May 2026 to 31 March 2027. Verify as a resident with your My Number card and you get 500 points, plus entry into a monthly draw with 275 winners. This article works out what you actually get over a year.
0% at large stores is an unusual choice
This series covers one municipal digital local currency at a time. Shibuya's Hachi Pay pays 8% year-round to verified residents; Minato's Minato Pay reaches 20% in campaign months. On headline numbers alone, Setagaya's 3% looks poor.
Read the terms, though, and the intent is unmistakable. The current campaign is called "Support Setagaya's shops!", and the rates split like this:
Setting large stores to 0% is the decisive break from other wards. Shibuya applies one rate across all participating shops; Minato still allocates 10% to large stores. By paying nothing at all at large stores, Setagaya ensures its budget flows only to neighbourhood businesses.
This is not a bad design; it is a narrow one. If your goal is cheaper supermarket and chain-store shopping, Setagaya Pay is the wrong tool. If you regularly use the greengrocer in the shopping street or an owner-run restaurant, it adds 3% that no other payment method gives you. Its value depends entirely on where you shop.
Working out the annual return
The cap is 1,000 points per person per month. Converting by rate shows what the campaign is really worth.
Small independent shops (3%)
1,000 points ÷ 3% = about 33,333 yen of spending fills the monthly cap
Convenience stores and similar (2%)
1,000 points ÷ 2% = 50,000 yen of spending fills the monthly cap
Large stores (0%)
No points, however much you spend
The campaign runs from 1 May 2026 to 31 March 2027 — eleven months. Filling the cap every month gives the following theoretical maximum.
| Pattern | Monthly spend | Monthly points | Over 11 months |
|---|---|---|---|
| Independents, cap filled | about 33,333 yen | 1,000 points | up to 11,000 points |
| Independents, 10,000 yen a month | 10,000 yen | 300 points | 3,300 points |
| Independents, 3,000 yen a month | 3,000 yen | 90 points | 990 points |
| Large stores only | any amount | 0 points | 0 points |
Theoretical values calculated by our editorial team from the rates and caps published by Setagaya City. The scheme ends mid-period once the budget is exhausted, so actual amounts may be lower.
Realistically, a household that shops in the local street spends perhaps 10,000 yen a month there, which makes around 3,000 points a year the practical figure. Not dramatic — but the period is eleven months long, so it accumulates on its own if you already use the shops.
500 points for resident verification, plus a monthly draw
Separately from the rebate, Setagaya introduced resident verification for FY2026.
| Item | Detail |
|---|---|
| Method | Identity confirmation via the Japanese Public Key Infrastructure (JPKI) using the IC chip in your My Number card |
| Benefit | 500 points on first verification, credited immediately |
| Period | 13 May 2026 to 31 March 2027 |
| Personal data | The ward states explicitly that it does not collect personal information |
| Non-residents | My Number card verification is available on first use of online top-up |
Verified users also become eligible for "Setagaya Pay Repeater Support". From 15 May 2026 to 31 March 2027, 275 people a month win points by lottery, in tiers from five first prizes down to two hundred fourth prizes, with a top prize of 10,000 points.
500 points is worth about half a month of rebates. Earning 500 points at 3% requires roughly 16,700 yen of spending. If you have a My Number card, verifying gets you the same amount for nothing, which makes verify first, then start spending the rational order. Entry to the draw comes with it.
The easiest thing to miss is the point expiry
Setagaya Pay points expire on the last day of the sixth month after they are credited. This applies uniformly to rebates, the 500 verification points and any lottery winnings.
This is where people lose money in practice. Rebate points arrive in small amounts every month, so each month's batch runs its own clock. The 300 points credited in May expire at the end of November, June's at the end of December, and so on. Saving up for one large purchase means the oldest tranche quietly lapses first.
The fix is simple: spend rather than save. With a 1,000-point monthly cap the scheme was never designed to build a large balance. Using a few hundred points at a time means never having to track expiry.
One more thing: the terms state explicitly that the campaign ends without prior notice once the budget is exhausted. The date of 31 March 2027 means "no later than this", and it may finish sooner. If you intend to use it, do not leave it to the end.
Four wards reveal the shapes these schemes take
For this comparison widened to all six schemes — the five Tokyo wards plus Saitama City — with a single table and guidance on which to use when, see Japan's Municipal Pay Apps: 6 Reward Schemes Compared.
| Ward | Type | Rate and cap |
|---|---|---|
| Setagaya — Setagaya Pay | Year-round, low rate, independents only | Independents 3% / convenience 2% / large stores 0%, 1,000 points a month |
| Shibuya — Hachi Pay | Year-round, mid rate, residents favoured | 8% verified / 4% others, 8,000 points a month |
| Minato — Minato Pay | Concentrated, high rate | Up to 20% at independents in campaign months, 7,000 points |
| Kita — Hoku Pay | Premium voucher issuance | 30% premium (from 5 October 2026) |
Put four wards together and three shapes appear: thin year-round rebates (Setagaya, Shibuya), thick rebates in selected months (Minato), and premium voucher issuance (Kita).
You cannot choose which one you get — it follows from where you live. But knowing which shape your ward uses changes when and where you should spend. In Setagaya: at independents, frequently, in small amounts. In Minato: in campaign months, in bulk. The optimal behaviour is the exact opposite.
Rebate points occasionally raise questions about income tax treatment, but small points incidental to everyday payments are normally treated as a discount rather than income. See payments, points and tax for more.
Summary
- The rebate is 3% at small independent shops, 2% at convenience stores and similar, and 0% at large stores, with a cap of 1,000 points per month.
- It runs from May 1, 2026 to March 31, 2027, and ends without notice once the budget is used up.
- At small independent shops, about ¥33,333 in payments hits the monthly cap, so using it fully every month earns up to 11,000 points.
- Verifying your ward residency with your My Number Card gives 500 points the first time and entry into a monthly draw for 275 people.
- Points expire at the end of the month 6 months after they are granted, and each month's points expire separately, so use them up regularly.
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Sources
This article is general information about a public scheme. Rates, caps, periods and participating shops change without notice, and the scheme ends without prior notice once its budget is exhausted. Check the Setagaya Pay official site and Setagaya City announcements for current terms.