GMO Payment Gateway, China's No. 1 Online payment,
Alibaba Group's "Alipay International payment Service"

July 10, 2009
GMO Payment Gateway, Inc.

GMO payment processing business Payment Gateway Co., Ltd. (TSE Section: Securities Code: 3769 Headquarters: Shibuya-ku, Tokyo, President & Chief Executive Officer: Issei Ainoura (hereinafter referred to as "GMO-PG") is pleased to announce that the globalization of the non-face-to-face commerce market We will make full-fledged efforts to form a global alliance to support the overseas expansion of Japan companies.

On July 10, 2009, we partnered with Alibaba Group's Shijibao (China) Network Technology Co., Ltd. (Alipay) to launch the online payment method "Alipay International payment Service" for e-commerce businesses wishing to enter the Chinese e-commerce market.

With the spread of the Internet, online shopping has become possible at any time and place, and the non-face-to-face commerce market is expanding not only in one country but also on a global scale. As the market continues to globalize, there is a rapid increase in the number of Japan companies wishing to expand into e-commerce in countries with high future potential demand, but it is difficult to do so due to the difference in language and culture, and it is not easy to raise the revenue from the time and cost burden because the business practices are different from those of Japan even after entering the market. On the other hand, companies around the world have also begun to develop their businesses with a view to the non-face-to-face commerce market in Japan, and the number of approaches from companies in each country continues to increase.

Against this backdrop, GMO-PG has decided to start full-fledged efforts to support the global expansion of domestic and foreign companies, such as providing overseas payment services that are in demand from e-commerce businesses and providing promising overseas services that can add value to e-commerce businesses.

First of all, we will provide the largest online payment method in China, Alipay International payment Service.

China's consumer market reached one of the world's highest levels in 2007 at approximately 116 trillion yen (*1) due to the increase in income due to rapid economic development. Against this backdrop, the Chinese e-commerce market is expected to grow rapidly to 1.7 trillion yen in 2008, up 128% from the previous year (*2), and is expected to grow to more than 10 trillion yen in 2012.

Alipay payment is the largest online payment method in China, accounting for 59.0%(*3) of the online payment market share in China's rapidly expanding e-commerce market, with more than 180 million members and a daily transaction volume of more than 10 billion yen (May 2009). Alipay payment is the most popular online payment method among Chinese consumers due to its easy, secure, and instant payment service, as well as an escrow service that allows online shoppers to collect payments and reduce buyers' anxiety about receiving goods.

GMO-PG will provide the Alipay International payment Service to approximately 20,000 existing merchants and new businesses wishing to enter the Chinese e-commerce market. By simply contract GMO-PG, the introductory company can introduce the "Alipay International payment Service" without the need for Chinese language or complicated applications and procedures, and GMO-PG collects sales proceeds from Alipay at Japan yen, so there are no risks related to foreign exchange. GMO-PG will continue to provide the Alipay International payment Service with the goal of introducing it to 100 stores in three years.

*1 Ministry of Economy, Trade and Industry White Paper on International Trade 2008
*2 iResearch materials
※3 Analysys International