GMO-PG to start bitcoin payment services, as a first attempt by a Japanese payment service provider. payment processing business first Japan to launch a Bitcoin payment service

GMO Internet Group to develop non-face-to-face credit card payment processing business GMO Payment Gateway, Inc. (TSE Part: Securities Code: 3769 Headquarters: Shibuya-ku, Tokyo, President & Chief Executive Officer: Issei Ainoura hereinafter referred to as "GMO-PG") announced on September 22, 2014 that it is a stock that operates the Bitcoin platform. We have decided to invest in bitFlyer (Headquarters: Chiyoda-ku, Tokyo, Representative Director: Yuzo Kano, hereinafter referred to as "bF"). We will conduct capital and business alliance in September and become the first payment processing business Japan to start accepting payment services in Bitcoin, and we plan to start providing the service in November 2014. GMO-PG will provide "Bitcoin payment" as one of the new payment method for EC businesses.

Bitcoin is one of the virtual currencies circulating on the Internet, and it can be traded by P2P (*1) without going through an intermediary such as a bank, and it is widely used by individuals and companies as an alternative to general payment methods such as payment e-commerce sites and international remittances, as well as Bank transfer because it reduces the burden of fees.

In recent years, the global bitcoin market has continued to expand, with the number of wallets (e-wallets) required for bitcoin transactions increasing sevenfold to 5.32 million wallets in the one year from June 2013 to June 2014, and reaching 8 million wallets by the end of 2014 (*2).

Overseas, 63,000 businesses around the world support Bitcoin payment, mainly major companies such as Dell inc., which manufactures and sells personal computers, Expedia, Inc., a travel reservation site, and WordPress.org of the blog software. (As of June 2014)

On the other hand, in Japan, at the Liberal Democratic Party's Special Committee on IT Strategy held on June 19, 2014, it was stated that bitcoin will be treated as a "value record" rather than a "currency" or "thing" (*3) without applying existing laws and regulations, stating that it will be an element of "new innovation in business" (*3), and it is expected to spread in the future.

However, in Japan, awareness of Bitcoin is still low and there are few Actual of its use, so there are many consumers and businesses who are anxious and concerned about the payment of Bitcoin without reality. In addition, Bitcoin takes about 10 minutes to approve transactions, payments, remittances, etc., so it cannot be payment immediately, making it difficult for e-commerce businesses to use it as a payment method for online shopping.

Against this backdrop, GMO-PG has decided to capital and business alliance with bF, a provider of the BitCoin platform, in order to provide e-commerce businesses with "Bitcoin payment" that consumers and businesses can use safely and conveniently.

"Bitcoin payment" enables immediate payment of bitcoin using bF's bitcoin platform, so purchasers can payment bitcoin without discomfort in the same way as existing payment methods (*4). In addition, GMO-PG, which has more than 19 years of service provision Actual in the BtoC EC market and is the only TSE listed company in Japan specializing in payment, will provide a safe "Bitcoin payment "payment environment for consumers and businesses.

In the future, GMO-PG will promote support for "virtual currencies" such as Bitcoin.

(*1) An abbreviation for peer to peer, which is a network system in which connected computers communicate directly with each other without going through a dedicated client server.

(*2) Reference: CoinDesk, "State of Bitcoin Q2 2014 Report Reveals Expanding Bitcoin Economy"

(*3) In Japan, the Liberal Democratic Party's view defines Bitcoin as belonging to a new category as a "value record" rather than a virtual currency, but in this press release, it is described as "virtual currency" for ease of understanding.

(*4) Limited to consumers who hold bitcoin at bF (as of September 22, 2014). In the future, we plan to expand the service so that consumers who hold bitcoin other than bF can also use it.

Bitcoin is a virtual currency that is recorded on a network of terminals involved in mining (*a) that approve transactions. In order for consumers and businesses to use Bitcoin, they must first create a wallet (*B), exchange the currency for Bitcoin at an exchange or sales office (*C), and put the Bitcoin into the wallet. When trading, remittances and deposits are made from each wallet, but Bitcoin transactions are established by recording transactions, payments, and remittances every 10 minutes by Meining. Since mining operations are designed to take about 10 minutes on average, it is said that it takes about 10 minutes to approve Bitcoin transactions, payments, remittances, etc., which is one of the factors that makes it difficult to introduce Bitcoin into the payment method of online shopping that requires immediate payment.

With GMO-PG's Bitcoin payment, the payment between merchants and consumers is completed within bF's platform and is paid with a prepaid deposit, enabling instant payment in less than 10 minutes. In addition, while Bitcoin transactions fluctuate due to supply and demand, the "Bitcoin payment" provided by GMO-PG provides an option (free of charge) to avoid the risk of market fluctuations among merchants, so merchants can use it with peace of mind.

＜Flow of "Bitcoin payment" provided by GMO-PG＞

bitFlyer was established in January 2014 and is a comprehensive platform operator for the sale, purchase and payment of the virtual currency "Bitcoin" distributed on the Internet. It is the largest Bitcoin corporation in Japan and the representative director of the Japan Value Recording Association (JADA). With a management team from a foreign-affiliated financial institution, we provide a safe and secure Bitcoin platform with an emphasis on security.

GMO Payment Gateway provides credit cards and other services to more than 48,000 merchants (as of June 2014, GMO Payment Gateway Group), including non-face-to-face sales businesses such as online shops, SNS, and smartphones, businesses that charge monthly fees such as NHK, and public entity such as the Japan Pension Service and the Tokyo Metropolitan Government. payment processing services is available. We aim to provide a safe and convenient payment for consumers and businesses, and to be the infrastructure for Japan payment processes. As a leading company in the payment industry, we will lead innovation and contribute to improving the EC ratio of Japan.

bF Service Site URL

URL : https://bitflyer.jp/

GMO-PG Corporate Site URL

URL : http://corp.gmo-pg.com/

GMO-PG Service Site URL

URL : http://www.gmo-pg.com/

TEL

+81-3-3464-0182

FAX

03-3464-2387

E-mail

ir@gmo-pg.com

TEL

+81-3-5456-2695

FAX

03-3780-2611

E-mail

pr@gmo.jp