GMO-PG launches social app payment service
Planned to be provided to major application development companies such as CyberAgent

January 21, 2010
GMO Payment Gateway, Inc.

GMO Payment Gateway Co., Ltd. (TSE, Securities Code: 3769, Headquarters: Shibuya-ku, Tokyo, President & Chief Executive Officer: Issei Ainoura, hereinafter referred to as "GMO-PG"), which develops payment processing business such as non-face-to-face credit cards in the GMO Internet Group, announced today (January 21, 2010) that it has announced the launch of a payment specializing in social applications We have decided to start the service. The Social App payment Service is scheduled to be launched in February 2010 to major app development companies, including CyberAgent, Inc. (hereinafter referred to as "CyberAgent"), in cooperation with JCB Co., Ltd. (hereinafter referred to as "JCB") and major VISA and MasterCard issuing card companies. In addition, in March 2010, we will build a social app payment service with a view to establishing a joint venture with an app development company, a well-known game creator, an advertising company, etc.

A social app is an application such as a game or tool that runs on a social networking service (SNS) and is based on a community and takes advantage of the connections and interactions of users. The market size in Western Europe is estimated to be more than 100 billion yen, and the market size in Japan is also expanding due to the rapid increase in the number of users despite the fact that it only started in earnest last year.

On the other hand, although the number of users is increasing, in Japan Japan, the spread of paid social apps has been delayed due to the burden on app developers to negotiate conditions with payment processing company companies, credit card companies, etc., screening and registration, and incorporating individual payment method. Against this backdrop, GMO-PG has decided to provide a specialized payment service for social applications in order to reduce the burden on app developers.

The provision of social app payment services allows app developers to reduce the time required to implement Credit card payment and to facilitate the integration of individual payment method. In February 2010, we plan to provide the service to CyberAgent Group companies, Realworld, Inc., and other app development companies.

We plan to provide services not only to app development companies that mainly target domestic SNS users, but also to app development companies such as Doricom Co., Ltd., which are planning to expand services to major overseas SNS users.

In addition, in order to quickly develop services and share profits in the social app payment service, we are considering establishing a joint venture with app development companies, famous game creators, advertising companies, etc. in March 2010.

By offering payment services for a flat fee, we reduce the time it takes for app developers to negotiate terms.

• Initial cost Adjustment in progress
• Fixed cost 20,000 yen/month
• Processing fee 0 yen/case
• Commission: 5% of the sales amount

* The unit price of one payment processing for operation is set at 1,000 yen or more.

We will shorten the time it takes to introduce Credit card payment.

In order to shorten the introduction period of Credit card payment, we have obtained the cooperation of JCB and major VISA and MasterCard issuing card companies, and it can be used by major credit card companies, including the five major brands.

By applying GMO-PG's SaaS-type "PG Multi-Payment Service", we will reduce the burden on application developers by realizing the collective introduction of security measures essential for various payment method and payment services such as credit cards, PayPal, and electronic money.

 

The social app payment service provided this time is expected to take the form of a consortium in the future. By forming a consortium, it is possible to develop services that take advantage of the strengths of each company, consolidate needs and quickly reflect services, share profits through dividends, and invest in new developments.

GMO-PG will be the founding promoter and will solicit investment from application development companies, famous game creators, advertising companies, etc. for 100,000 yen per unit, and will promote commercialization studies with a view to establishing a joint venture in March 2010. In addition to social app payment services, the consortium will also develop its business in cooperation with related services incidental to this field, such as smartphone-related applications, advertising delivery server technology, and point services.

In addition, we are considering the form of a joint venture, such as a study group, limited liability partnership, limited liability partnership, limited liability company, or joint-stock company. GMO-PG expects the social app market in Japan to reach approximately 100 billion yen in 2011, and hopes to contribute to the sound development of the expanding market.