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But anyway - I am quite new to this kind of thing but I write to ask whether this sorry state of affairs could be circumnavigated. Is there anyway that on your site - you could ask them to fill out a form in japanese that asks them the same questions that the paypal sign up form asks them. Then, your website takes these answers and places them in the relevant form on the paypal website.
Complication - the paypal form has a word in image thing going on to stop automated sign ups. The person has to read the word in the image and type it out. Our japanese user could be asked to do this here - after we have loaded the paypal sign up page and populated it with all the sign up stuff they gave to us before.
Then the japanese person can press submit. Then is taken to the next stage of the sign up - giving bank details - which is in japanese on the paypal site apparantly (clarification anyone?).
Has anyone tried this kind of thing? Is it even possible?
I don't think your idea of working around PayPal's Japanese deficiencies would work. You could certainly write a tutorial in Japanese to show people how to go through the process, but I doubt many would use the service. PayPal themselves have to fully implement a Japanese interface with Japanese customer support for this to go anywhere.
Are you also going to field customer service questions in Japanese when your customers come back complaining that most of the PayPal system is in English and they don't know how to process transactions, check their balance, add money to their account, or other such matters? Just getting people through the signup is only one step in the process.