GMO Payment Gateway to Expand with "Saving Consumption" and "Stay-at-Home Consumption"
Developing payment services in the online supermarket market

April 7, 2009
GMO Payment Gateway, Inc.

GMO Payment Gateway Co., Ltd. (TSE Partial: Securities Code: 3769 Headquarters: Shibuya-ku, Tokyo, President & Chief Executive Officer: Issei Ainoura hereinafter referred to as GMO-PG) is a subsidiary of GMO Internet payment processing business Group (GMO-PG) amid growing demand for online supermarkets in response to the trend of "saving consumption" and "stay-at-home consumption." With the aim of expanding the sales channels of businesses that operate face-to-face supermarkets, we have launched an online supermarket specification Credit card payment service.

In addition, on April 7, 2009, GMO-PG and NEO BEAT Co., Ltd. (Headquarters: Osaka City, Osaka, Representative Director: Satoshi Ichinada, hereinafter referred to as "NEO BEAT"), which operates an online supermarket business, have agreed to jointly sell the Net Super System provided by NEO BEAT with the Credit card payment service of Net Super specifications.

An online supermarket is an online supermarket that accepts orders on the Internet and delivers products from physical stores to consumers. The convenience of being able to purchase fresh food and daily necessities on the same day from the comfort of one's home as at a mass retailer is increasing in demand because it matches consumers' defensive consumption orientation such as "stay-at-home consumption" and "thrifty consumption," which are refraining from going out or eating out in favor of eating at home due to the impact of the economic downturn in recent years. Major supermarkets have also begun to respond to online supermarkets one after another, and the online supermarket market is expanding rapidly.

However, it was not easy to introduce the payment service due to the unique problems of online supermarkets, such as handling fresh foods that cannot be stored for a long time, selling out of ordered products due to the fluidity of inventory due to product linkage with physical stores, and canceling products due to product returns or absence at the time of delivery.

Against this backdrop, GMO-PG has built a Credit card payment service that can handle sell-outs and returns that occur in online supermarkets, and will provide it to businesses that start new online supermarkets.

In addition, we have partnered with NEO BEAT, which has the know-how of the net super system and operation, to jointly provide the net super system that has the following services that are essential for the operation of the net supermarket, in addition to the Credit card payment service of GMO-PG's net supermarket specifications.
● Delivery notification by location information service: Track the status of delivery using the location information system and automatically deliver it to the customer's mobile phone 10 minutes before delivery to prevent non-delivery due to absence.
● Trade area analysis system (map information): You can predict member acquisition and sales based on household information around the store, and estimate delivery costs based on delivery time.
●Core linkage system: Linkage with product management systems such as POS that have already been introduced

This system will be provided to businesses that are starting a new online supermarket by utilizing the know-how of system construction and provision when GMO-PG and NEO BEAT delivered the net super system to Izumiya Co., Ltd., a major supermarket.

In addition to responding to sellouts and returns caused by online supermarkets where inventory is fluid, this payment service also responds to the convenience of customers.

1. payment at the time of delivery: We will respond to the product sold out, and we will make a provisional payment at the time of ordering, and a full payment at the time of delivery after the product is confirmed.
2. Returns: We also handle returns with a price change processing function that automates the change of the amount after the order is placed.
3. Cancellation correspondence: If the product cannot be delivered due to the customer's absence, it is possible to cancel the product even after payment processing.
4. Use of house cards: GMO-PG's Actual of connections with more than 40 credit card companies can be used with house cards other than the five major brands (*1). For example, Izumiya Co., Ltd., which has already introduced this system, uses the Izumiya Card, which is a house card.

※1：VISA,MasterCard,JCB,AmericanExpress,DinersClub

In 2009, the online supermarket market is expected to grow by 25% year-on-year to 28.4 billion yen (*2). Consumers who have acquired the habit of using online supermarkets are expected to continue using them regardless of the economic environment due to their convenience, and the demand for services that deliver products to their homes is expected to increase further due to the declining birthrate and aging population and the advancement of women in society. GMO-PG will be jointly provided with NEO BEAT, with the aim of providing the Net Super System to 10 new entrants by the end of this fiscal year.

In addition, GMO-PG will continue to develop Credit card payment services with online supermarket specifications in the ever-expanding online supermarket market.

*2: Fuji Keizai Co., Ltd., "Food Delivery Market Situation and Future Prospects 2009" (announced on March 10, 2009)