will relocate to each operating company's site.
June 7, 2022
Sumitomo Mitsui Card Company, Limited
GMO Payment Gateway, Inc.
GMO Payment Service, Inc.
Sumitomo Mitsui Card Company, Limited (President & Chief Executive Officer: Yukihiko Onishi, hereinafter referred to as "Sumitomo Mitsui Card"), GMO Payment Gateway, Inc. (President & Chief Executive Officer: Issei Ainoura, hereinafter referred to as "GMO-PG"), and GMO Payment Service, Inc. (President & Chief Executive Officer: Katsunari Mukai, hereinafter referred to as "GMO-PS") are pleased to announce that they have announced as of May 23, 2022 (Monday), Buy Now Pay Later ("GMO-PS"). We are pleased to announce that we have concluded a basic agreement regarding a business alliance (hereinafter referred to as the "Alliance").
[Purpose of this partnership]
BNPL stands for "buy now, pay later" and is a payment method that is gaining attention as a payment way to complement credit card functions as its use in overseas markets grows. In Japan Japan, it is called "buy now pay later payment", and since the payment procedure can be easily completed without entering a credit card number and payment can be performed after confirming the arrival of the product, its convenience is supported, and its use is expanding, especially among young people, especially on e-commerce sites.
Sumitomo Mitsui Card and GMO-PG have been working on various initiatives to solve the problems of businesses and users in the cashless market in Japan, such as the release of the payment platform "stera". This time, Sumitomo Mitsui Card, GMO-PG, and GMO-PS, a consolidated company, have reached an agreement to launch a new co-brand in the domestic market and in the expanding BNPL field, provide unprecedented services, and aim to be the No. 1 BNPL service in Japan.
Sumitomo Mitsui Card aims to establish an overwhelming position as a comprehensive payment processing business by newly entering the BNPL market and providing a one-stop service for all payment method providers beyond credit cards. GMO-PG and GMO-PS provide Sumitomo Mitsui Card Actual Payment After Delivery service as "GMO Payment After Delivery" (GMO-PS: 2013~) and "Condo Pay byGMO" (GMO-PG: 2020~). Release.
【Details of the Partnership】
The new service, which is a joint venture between Sumitomo Mitsui Card, GMO-PG and GMO-PS, is scheduled to start operations by the spring of 2023.
The new service will provide both businesses and users with a new BNPL service that has never been seen before, based on the Payment After Delivery service know-how and system infrastructure that GMO-PG has cultivated so far in the credit card business and the know-how of installment payments that Sumitomo Mitsui Card has cultivated for more than 50 years.
The current Payment After Delivery service in Japan and Japan are mainly for purchases on e-commerce sites, and each time a purchase is made, a screening is conducted based on the contents of the purchased product, and the payment is completed. The mainstream of users' payment is a payment one-time payment method such as convenience store payment after the product arrives, but the new service launched by the three companies is planned to support long-term installment payments as well as conventional Payment After Delivery service. In addition, by utilizing the platform of the payment platform "stera"*1 provided by Sumitomo Mitsui Card and GMO-PG, we plan to provide a service that enables payment even for face-to-face transactions at stores, mainly at merchants who have installed "stera terminal".
In addition, Sumitomo Mitsui Card will provide new services for BNPL users in conjunction with its member app "Vpass". In addition, we will consider providing services that digitally integrate the individual product installment business and new services.
In the future, we will proceed with intensive discussions between the three companies, and will report as soon as the specific content of the service (including the name) and commerciality are decided.
*1 The payment platform "stera" is a payment platform for businesses built by Sumitomo Mitsui Card in collaboration with GMO-PG, GMO Financial Gate, and Visa to solve the problems associated with the introduction of cashless payments.
Sumitomo Mitsui Card, GMO-PG and GMO-PS will continue to provide safer and more convenient payment method to customers and strive to further promote cashless payments.
【GMO Payment Gateway】
More than 100,000 merchants, including online businesses such as online shops, NHK, National Tax Agency, and public entity in Tokyo, etc., We provide payment-related services and finance-related services. Focusing on payment services, we utilize value-added services and finance technologies that contribute to the growth of merchants payment method We provide services that meet financial needs, and our annual Transaction value exceeds 9 trillion yen. (Consolidated figures as of the end of March 2022)
As a leading company in the payment industry financial institution, we provide various Provision of payment and finance-related solutions and platforms, infrastructure of payments and so on. We are also promoting global expansion such as the development of payment-related services overseas and strategic investment and financing of cutting-edge FinTech companies overseas. We will continue to drive new innovations and contribute to the realization of a sustainable society and the progress and development of society.
【GMO Payment Service】
GMO-PS is a consolidated company of GMO Payment Gateway, which provides comprehensive payment-related services and finance-related services, and provides Payment After Delivery service "GMO Payment After Delivery" for BtoC EC transactions and "GMO B2B Pay on Credit" Payment After Delivery service for BtoB transactions. It is used by many businesses due to its real-time credit provision, industry-low rates, and a system that can be customized according to the operator's operation.
We will continue to aim to be a company that contributes to society and people through Internet and payment services, and will strive to develop and provide services that can be used more safely and conveniently by e-commerce businesses and purchasers.
[Press Inquiries]
GMO Payment Gateway, Inc.
Corporate Value Creation Strategy Division Public Relations/UX Design Department
- TEL
- +81-3-3464-0182
GMO Internet, Inc.
Group Communication Department Public Relations Terayama
- TEL
- +81-3-5456-2695
- pr@gmo.jp
【Inquiries regarding this matter】
GMO Payment Gateway, Inc.
Innovation Partners Division
- TEL
- +81-3-3464-2323
- info@gmo-pg.com
GMO Payment Service, Inc.
- TEL
- 03-3464-2392
- g-marketing@gmo-ps.com
【Sumitomo Mitsui Card Company, Limited】 （URL: https://www.smbc-card.com/index.jsp）
| Corporate Name | Sumitomo Mitsui Card Company, Limited |
|---|---|
| Location | SMBC Toyosu Building, 2-31 Toyosu, Koto-ku, Tokyo |
| Representative | President & Chief Executive Officer Yukihiko Onishi |
| Business Description | ■ Credit card business ■ Debit card, prepaid card, other payment business ■ Loan business ■ Guarantee business ■ Gift card business ■ Other ancillary business |
| Capital | 34,030,000 yen |
[GMO Payment Gateway, Inc.] (URL: https://www.gmo-pg.com/)
| Corporate Name | GMO Payment Gateway, Inc. (TSE Prime Securities Code: 3769) |
|---|---|
| Location | 1-2-3 Dogenzaka, Shibuya-ku, Tokyo Shibuya Fukurasu |
| Representative | President & Chief Executive Officer Issei Ainoura |
| Business Description | ■ Comprehensive payment related services and finance related services |
| Capital | 13,323 million yen |
[GMO Payment Service, Inc.] (URL: https://www.gmo-ps.com/)
| Corporate Name | GMO Payment Service, Inc. |
|---|---|
| Location | 1-14-6 Dogenzaka, Shibuya-ku, Tokyo Humax Shibuya Building |
| Representative | President & Chief Executive Officer Katsunari Mukai |
| Business Description | ■ payment processing services and EC peripheral services |
| Capital | 150 million yen |
[GMO Internet, Inc.] (URL: https://www.gmo.jp/)
| Corporate Name | GMO Internet, Inc. (TSE Prime Securities Code: 9449) |
|---|---|
| Location | Cerulean Tower 26-1, Sakuragaoka-cho, Shibuya-ku, Tokyo |
| Representative | Representative Director and Group Representative Masatoshi Kumagai |
| Business Description | ■ Internet infrastructure business ■ Internet advertising / media business ■ Internet finance business ■ Cryptographic assets business |
| Capital | 5 billion yen |
June 7, 2022
Sumitomo Mitsui Card Company, Limited
GMO Payment Gateway, Inc.
GMO Payment Service, Inc.
Sumitomo Mitsui Card Company, Limited. (President: Yukihiko Onishi, "SMCC"), GMO Payment Gateway, Inc. (President & Chief Executive Officer: Issei Ainoura, "GMO-PG") and GMO Payment Service (President & Chief Executive Officer: Katsunari Mukai, "GMO-PS") announces the signing of a Memorandum of Understanding for the business alliance ("the Alliance") regarding Buy Now Pay Later ("BNPL") on May 23, 2022.
【Purpose of the Alliance】
BNPL, as the name implies, refers to making the payment after the goods are received. It has gained much traction as a payment method that supplements credit card with its growing popularity with users overseas. Use of this payment method is also expanding in Japan, where it is referred to as deferred payment ('atobarai' in Japanese), especially for online purchases and among the younger generation, for its ease-of-use of completing the payment without the need to input credit card details as well as being able to make the payment after receiving the goods.
Both SMCC and GMO-PG have undertaken several initiatives to resolve issues faced by business operators and consumers/users in the domestic cashless market, such as the launch of "stera" payment platform. Given the expanding BNPL market in Japan, the three companies of SMCC, GMO-PG and GMO-PS (a consolidated subsidiary of GMO-PG) have hereby reached an agreement to establish a joint BNPL brand to provide a novel service with the aim to become the No. 1 BNPL service provider.
SMCC aims to establish a commanding position as a comprehensive payment provider that goes beyond the credit card market, by offering one-stop multi-payment method services to business operators by newly entering the BNPL market. GMO-PG and GMO-PS offers the deferred payment service of "GMO Payment After Delivery" (by GMO-PS since 2013 onwards) and "Condo Pay byGMO" (by GMO-PG since 2020 onwards). Together with SMCC and by leveraging our know-how and track record, we hereby announce our intention to launch a new service ("the new service") to further expand the BNPL service line-up.
【Overview of the Alliance】
SMCC, GMO-PG and GMO-PS expects to begin operation of the new service around Spring 2023.
The new service aims to provide innovative and novel BNPL service to business operators and users, by building on GMO-PG group's know-how of its existing deferred payment service and systems and infusing SMCC's know-how in credit assessment and installment payments garnered over more than 50 years in the credit card business.
The deferred payment service in Japan mainly applies to E-Commerce online shopping where the payment is completed after assessment of the creditworthiness of each transaction, based on the frequency of purchase and type of merchandise. Payment by the consumer/user is usually made after receiving the goods, paid at places such as convenience store in a single installment. The new service envisaged by the three companies will not only provide the deferred payment but also provide long-term installment payments. In addition, the new service will also provide service for offline market by utilizing the stera ※1 platform, provided by SMCC and GMO-PG, installed at the merchant's stores.
Furthermore, SMCC also plans to offer the new service by linking it to Vpass, a members-only proprietary app for their credit card payment users. Furthermore, consideration is underway for digital convergence services with Individual Credit Purchase business.
The three companies will continue to rigorously deliberate on the concrete details of the service, including the service's moniker, and will promptly announce the particulars upon finalizing the service details.
※１ "stera" is a payment platform for business operators that helps resolve the various challenges in cashless implementation. stera was developed by SMCC in conjunction with GMO-PG, GMO Financial Gate, Inc. and Visa.
SMCC, GMO-PG and GMO-PS will continue our endeavors to advance cashless migration by providing user-friendly and secure payment services.