GMO Payment Gateway
Katsushika Ward has been offered "public fund Credit card payment Service"

January 10, 2008

Develop non-face-to-face Credit card payment business in the GMO Internet Group, GMO Payment Gateway, Inc. (TSE Mothers: Securities Code: 3769 Headquarters: Shibuya-ku, Tokyo, President & Chief Executive Officer: Issei Ainoura hereinafter referred to as GMO-PG) is a Credit card payment processor for reservations for the use of public facilities by electronic application to be made by Katsushika Ward in fiscal 2008. We have decided to provide a connection processing service for electronic storage information.

Katsushika Ward will be the first of the 23 wards to launch the Katsushika Ward Public Facilities Reservation System, an electronic application service for residents to make reservations for the use of public facilities by the end of fiscal 2008. GMO-PG's Credit card payment processing ASP service public fund Credit card payment for municipalities, which has a Actual of introduction to Fujisawa City, Osaka Prefecture, and the Tokyo Metropolitan Government Bureau of Waterworks, has been adopted as an information connection processing service (Credit card payment processing service) for electronic storage related to this electronic application.

The electronic application service covers reservations for the use of 230 facilities in 76 buildings, such as "conference rooms" and "halls" in the city, and allows residents to pay by credit card online for many procedures that could not be done without going to the ward office in the past. In addition, Katsushika Ward expects that the introduction of this service will reduce the counter work of Katsushika Ward staff, reduce personnel costs and other expenses, and improve the efficiency of office work.

Today's non-face-to-face Credit card payment market is expanding not only in the field of product sales but also in the field of electricity, gas, and NHK broadcast subscription fees, against the backdrop of consumers' payment option needs and the government's new IT reform strategy. In addition, with the revision of the Local Autonomy Act, the scope of the introduction of credit cards has been expanded to include fields that are more closely related to daily life, such as various taxes, water bills, and application fees, even in the field of public fund.

Against this backdrop, Katsushika Ward also formulated the Katsushika Ward IT Promotion Plan (Katsushika e-plan) in fiscal 2002 with the Katsushika Ward Basic Plan, which aims to create a safe and lively city supported by humanity, as a high-level plan, and is actively promoting the establishment of an information infrastructure aimed at realizing an "electronic ward office."

Since 2006, GMO-PG has been entrusted with the collection Actual Credit card payment of credit cards for NHK broadcast reception fees, and since 2007 it has been entrusted with the collection of Fujisawa City Light vehicle taxes, various electronic application fees for Osaka Prefecture, and the Tokyo Metropolitan Government Bureau of Waterworks public fund. In addition, we are striving to create an environment where customers can use our services with peace of mind, such as by obtaining conformity certification for the International Certification Standard for Information Security Management ISO27001 covering all business sites.

The Actual of operation and introduction of GMO-PG's payment processing services and the Actual of its information security measures have been highly evaluated, and we have received a job offer from Katsushika Ward.

At present, Japan's private final consumption expenditure is about 291 trillion yen (*1), of which only about 32 trillion yen (*2) is handled in Credit card payment. The public fund market, which is a field where credit cards have not yet been introduced, is said to be 20 trillion yen ~ 50 trillion yen, and it is expected that the application of this market to credit card payments will lead to further expansion of the credit card market in the future, as well as improvements in the convenience of people's lives and the improvement of the operational efficiency of the public sector. GMO-PG will continue to promote and promote Credit card payment services not only in the field of online product sales, but also in the field of monthly payment that are closely related to daily life.

(*1) National accounts (*2) Consumer Credit Fact-finding Survey (Japan Credit Industry Association)