Sapporo City's water bill credit collection
Announcement of Adoption Decision

July 1, 2010
GMO Payment Gateway, Inc.

GMO Internet Group Develops payment processing business such as non-face-to-face credit cards GMO Payment Gateway, Inc. (TSE Partial: Securities Code: 3769 Headquarters: Shibuya-ku, Tokyo Representative Director: Issei Ainoura (hereinafter referred to as GMO-PG) is a credit card payment for water bills and other bills introduced by Sapporo City from October 2010. We will be entrusted with information processing work related to credit collection.

Today's non-face-to-face Credit card payment market is expanding not only in the field of product sales but also in the infrastructure field such as NHK broadcast subscription fees and electricity and gas, against the backdrop of consumers' need for payment methods and the government's new IT reform strategy. Since the revision of the Local Autonomy Act in 2006 to allow public fund credit card payments, various local municipalities have been supporting utility charge credit card payments. Under these circumstances, Sapporo City is also planning to introduce credit card payment for water bills and other expenses from October 2010 for meter readings with the aim of improving citizen services, and from August 1, Sapporo citizens will start accepting applications. With the introduction of credit card payment, Sapporo citizens will be able to enjoy benefits such as "improved convenience through diversification of payment methods", "accumulation of card points", and "centralized management of payment by using one card".

We have decided to adopt GMO-PG's "public fund Credit card payment Service" for municipalities as an information processing business related to credit card receipt for credit card payments such as water bills in Sapporo City.

The "public fund Credit card payment Service" provided by GMO-PG has been adopted by a number of local municipalities, including the Japan Pension Service (formerly the Social Insurance Agency), the Tokyo Metropolitan Government, and Osaka Prefecture, and has started credit card payment services at each municipalities. We already have a credit card payment for water bills, etc., and we already have Actual to provide them to Tokyo and Fukuoka City.

The "public fund Credit card payment Service" is an ASP service that centralizes the account update service, which performs credit card validity checking, sales billing, and card information update, and provides it as an ASP service, so it can be introduced in a short period of time. We also provide an online application function that supports 3-D Secure Authentication, which is a personal authentication service. In addition, GMO-PG is actively working on security measures so that customers can use its services with peace of mind, and has acquired certification for the international standard ISO/IEC27001:2005 (domestic standard JIS Q27001:2006) for information security management systems for all of its business sites, as well as JCB and American Express, Discover, MasterCard, and VISA) are jointly formulated by five international credit card brands, and are fully compliant with PCI DSS, a global security standard in the credit industry.

Regarding the handling of personal information, we have established a thorough system such as acquiring the Privacy Mark.

Currently, Japan's private final consumption expenditure is about 291 trillion yen (*1), of which only about 42 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 adaptation of this market to credit card payments will lead to further expansion of the credit card market in the future, as well as an improvement in the convenience of people's lives and an improvement in the operational efficiency of the public sector. GMO-PG will continue to promote the introduction of 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 20 National Accounts
(*2) "Consumer Credit Statistics of Japan" Heisei 22 edition (Japan Credit Association)

GMO-PG provides credit cards and other payment processing services to non-face-to-face sales businesses such as Internet shops, monthly fee-based businesses such as CATV and NHK, and public entity such as the Japan Pension Service (formerly the Social Insurance Agency) and the Tokyo Metropolitan Government. We aim to make payment safe and convenient for consumers and to be the infrastructure for Japan payment processes. As a leading company in the payment industry, we will lead innovation and contribute to the improvement of EC ratio.

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