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September 6, 2018
GMO Payment Gateway, Inc.
GMO Payment Gateway, Inc. (GMO-PG) of the GMO Internet Group, which develops comprehensive payment-related services and financial services, has forged an alliance with Sompo Japan Nipponkoa Insurance Inc. (Sompo Japan Nipponkoa) to provide GMO B2B Early Payment service to Sompo Japan Nipponkoa's commercial credit insurance policyholders*1 starting from September 6. The GMO B2B Early Payment service enables early conversion of account receivables (ARs) into cash by transferring the AR. For details please see this link:https://www.gmo-pg.com/service/hayabarai/
*1 An insurance product that provides coverage to businesses against possible losses incurred when the business counterpart is unable to meet their payment obligations due to bankruptcies and/or unpaid services (or payment in arrears).
【Background and Summary】
The B2B EC market consists not only of operators of online shops but also operators engaging in commercial transactions using systems such as EDI*2. Japan's B2B EC market size is estimated to be ¥317.2 trillion*3, over 19 times larger than the B2C EC market as of 2017.
GMO-PG provides a diverse range of services to support the growth of the B2B EC market, such as the comprehensive payment service PG Multi-Payment Service, B2B shopping cart-linked payment services, and the B2B EC Payment Package, a payment service optimized for B2B EC transactions.
GMO-PG launched the GMO B2B Early Payment to B2B EC operators that use our payment services from May 2018, enabling an early cash conversion of ARs by transferring the ARs to GMO-PG. In addition, the GMO B2B AR Guarantee reduces the uncollectible risk by providing guarantees on account receivables.
To respond to the numerous inquiries and needs expressed by mid-sized B2B EC operators that do not use GMO-PG's payment services, GMO-PG tied up with Sompo Japan Nipponkoa to provide the GMO B2B Early Payment service to commercial credit policyholders starting from September 6, 2018.
Through this alliance, Sompo Japan Nipponkoa will be able to offer a bundled proposal of commercial credit insurance and AR Early Payment, the first such offering in the general insurance industry. Policyholders of Sompo Japan Nipponkoa's commercial credit insurance policy holders will not only receive compensation against losses from counterparty bankruptcy and/or payment in arrears, but will also be able to improve cash flow. Through this alliance, the business operators currently using the GMO B2B Early Payment may potentially also use our comprehensive payment services going forward, thus by supporting both the payment and cash flow aspects of business operators, GMO-PG will contribute to the overall growth of B2B EC operators.
*2 EDI is an abbreviation for Electronic Data Interchange, a digitalized corporate-to-corporate interchange of business documents such as order sheet, delivery and invoice that were formerly paper-based.
*3 Ministry of Economy, Trade and Industry's survey "FY2017 Infrastructure Development Status for Data-driven Society in Japan (E-Commerce Market Survey)."
【GMO B2B Early Payment】
| Description | B2B EC operators can transfer their ARs to GMO-PG, thereby converting the AR into cash earlier than the contractual payment date. |
|---|---|
| Advantages | ・Allows operators to provide selling on credit as well as enabling cash-conversion before the payment date ・Reduces the risk of uncollectible payments ・Improves cash flow ・Improves the cash cycle (enables balance sheet trimming) |
| URL Link | https://www.gmo-pg.com/service/hayabarai/ |
| Total Purchase Amount | ¥1 million to ¥100 million |
| No. of potential customers | Over 3 corporates |
| Fee per transaction | 2.0％ and above |
【Sompo Japan Nipponkoa Insurance】
Sompo Japan Nipponkoa Insurance Inc., a core company of the SOMPO Holdings Group, is offers P&C insurance in Japan, ranging from car insurance, fire insurance, earthquake insurance and overseas travel insurance and many other insurance products to individuals as well as corporates. Given the structural transformation in industries and changing consumer needs influenced by the technological innovations in recent years, Sompo Japan Nipponkoa is aggressively pursuing innovation to generate new value-creation in addition to the growth of the mainline insurance business by establishing a dedicated organization to create new businesses and business models.
Sompo Japan Nipponkoa is committed to creating new value added products and services by rigorously thinking from the customer's perspective and guided by the management philosophy "Strive to contribute to the security, health, and wellbeing of our customers and society as a whole by providing insurance and related services of the highest quality possible."
【GMO Payment Gateway】
GMO-PG offers comprehensive payment services and financial services to 93,450 merchants (as of June, 2018), including online retailers, operators who collect recurring monthly payments such as NHK (the public broadcaster), and public organizations such as National Tax Agency and Tokyo Metropolitan Government. The Transaction value has exceeded ¥3 trillion yen not only through our core payment service but also the value-added services that contribute to the growth of the merchant's business.
Thus, as a leading Payment Service Provider (PSP) company, we offer Fintech services such as cashless solutions to Financial Institutions, Payment after Delivery (PaD), and lending services and is expanding into the Card-present payment services business. We are actively pursuing overseas expansion not only through capital and business alliances with overseas PSPs but to rollout payment and money services directly in the overseas markets.
GMO-PG aims to offer a convenient and secure payment infrastructure to both consumers and businesses, driven by new innovations to realize an EC and a cashless society.
【Related Links】
- Sompo Japan Nipponkoa (Company Profile)
- URL :https://www.sjnk.co.jp/english/
- GMO-PG (Company Profile)
- URL :https://corp.gmo-pg.com/en/
- GMO-PG (Service)
- URL :https://www.gmo-pg.com/en/