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Innovative credit card issuance system to be launched in October 2023
~Realizing credit card issuance in Japan at low cost and in a short period of time~

September 28, 2022

Hyundai Card Corporation
Bankware Global Inc.
EXA CORPORATION
GMO Payment Gateway, Inc.

Hyundai Card Co., Ltd. (Vice Chairman & CEO: Ted Chung, hereinafter referred to as "HCC"), Bankware Global Co., Ltd. (Co-CEO: Kyungjo Lee, Co-CEO: Eunjoong Lee, hereinafter referred to as "BwG"), Exa Co., Ltd. (President & CEO: Tomosuke Senda, hereinafter referred to as "Exa"), GMO Payment Gateway, Inc. (TSE Prime: Securities Code: 3769, President & Chief Executive Officer: Issei Ainoura hereinafter referred to as GMO-PG) is the No. 1 in the number of co-branded cards issued in Korea (*1). The two companies have agreed to collaborate on the development of H-ALIS (Hyundai Advanced Library Card Information System), a credit core platform provided by HCC, in Japan. From October 2023, we plan to provide localized H-ALIS for Japan Japan as a "credit card issuance support" of "GMO-PG Processing Platform" to support financial institution BaaS (Banking as a Service) (*2) provided by GMO-PG such as banks and credit card companies.
"H-ALIS" is a package software with Actual that realizes the issuance of credit cards using standard templates and parameter settings without programming. As a result Japan operators of financial institution finance services will be able to issue credit cards at a lower cost and faster than ever before.

  • *1 No. 1 in the number of PLCC (Private Label Credit Cards) issued in South Korea. According to HCC research, as of August 2021.
  • (*2) An organization with a finance license provides finance functions as a service (API).

Innovative credit card issuance system to be launched in October 2023

【Background and Summary】

As of 2021, the cashless payment ratio in Japan was 32.5%, and the Japan government is working to promote cashless payment with the aim of raising it to 80%, the highest level in the world in the future (*3). In particular, Credit card payment accounts for 85.3% (* 3) of cashless payments, and the need for businesses to quickly issue a variety of credit cards, such as virtual cards in addition to proper cards (*4) and affiliated cards, is expected to increase in the future.
Against this backdrop, HCC, BwG, Exa, and GMO-PG are the four companies that have formed a credit platform called H-ALIS, which is the No. 1 credit card issuer in Korea, a leading credit card country in South Korea, which accounts for 75.4% of Credit card payment of personal spending (2017) (*5) for Japan and provided as an ASP service.
Japan will be rolled out in Japan as a "credit card issuance support" of "GMO-PG Processing Platform", which supports BaaS of financial institution such as banks and credit card companies provided by GMO-PG, and the fee structure will be a fixed monthly fee to reduce costs. In addition, PCI DSS (*6) is fully compliant with GMO-PG, and GMO-PG prepares data centers and system operation personnel, greatly reducing the burden on businesses issuing new credit cards. In addition, the scalable API platform makes it possible to easily collaborate with FinTech operators and provide various added value and services to cardholders.

  • (*3) Cashless Promotion Council "Cashless Roadmap 2022" (announced on August 3, 2022)
  • *4 A credit card issued independently by a card issuer.
  • (*5) Policy Research Institute, "Report of the Study Group on Innovation in the Digital Age, Chapter 9: Developments in Korea" (released in June 2019)
  • *6 Global security standards in the credit card industry.

【Collaboration between the four companies】

HCC, a major credit card company in South Korea, owns the copyright to the credit backbone platform "H-ALIS" and will provide GMO-PG with a license for "H-ALIS". As an application distributor of H-ALIS, BwG is responsible for customization and system maintenance. With 35 years of development and operation Actual in the credit card field, EXA provides customization, implementation, and operation integration services that meet a wide variety of customer requirements and needs based on Actual, which led the localization of "H-ALIS" for the Japan domestic market. GMO-PG will provide localized "H-ALIS" for the Japan market as an ASP service, and will develop, provide FEP (*7), and sell in Japan.

  • (*7) Abbreviation for "Front End Processor". A system that is required by a credit card company to connect to an external network.

【About "H-ALIS" for the Japan domestic market】

"H-ALIS" is a credit platform provided by HCC in Korea. For Japan domestic markets, we localize for Japan specific characteristics such as Japanese compliance, payment option and credit networks, and regulatory requirements. Package software is characterized by its flexibility and high scalability, so it is possible to improve the operational efficiency of credit card issuance operations. Japan for businesses that develop financial institution and finance services in Japan, GMO-PG will provide it as "credit card issuance support" of "GMO-PG Processing Platform" to support financial institution BaaS such as banks and credit card companies.

■ Low-cost, short-term credit card issuance
Since a new credit card is issued by using a standard template and setting parameters, development costs and labor can be reduced, and the period of product testing and reflection in the system, which usually takes several months, can be shortened to a minimum of one week.
■ Smooth system linkage by utilizing API infrastructure
The extensible API platform makes it easy to link with external services such as credit bureaus and printing companies.
■ Rapid functional modification
Since it is developed in Java, which is a widely used development language, it is possible to quickly modify functions even after operation.

About Hyundai Card Corporation

Hyundai Card, a finance division of Hyundai Motor Group, leads the credit card industry in South Korea with a wide range of products optimized for cardholder lifestyles. With 10 million members in 2021, the company has transformed itself from a traditional finance company to an AI and data science finance technology company, thanks to its overwhelming growth through the provision of personalized card benefits using PLCC (Private Label Credit Card) and data science.

About Bankware Global Inc.

Bankware Global was established in October 2010 as a South Korean finance software company that develops and supplies next-generation mission-critical systems software for banks and finance companies, including core banking, credit card core, and installment leasing finance. Bankware Global has secured more than 100 leading banks and financial institution companies (* 8) in six Asian countries as customers, and is engaged in software sales, system construction, and maintenance of credit cards and banking systems through Bankware Japan, which is subsidiary in Japan Japan.

  • *8 As of September 28, 2022

About EXA Inc.

EXA Co., Ltd. promotes DX using advanced technology and comprehensively provides various services from upstream consulting to development, operation and maintenance.
In particular, he has been involved in the payment systems of more than 40 companies (*9) in the payment industry for 35 years, and has contributed to the promotion of digital innovation in companies based on his services and system development capabilities that combine abundant business knowledge and advanced technologies.

  • *9 As of September 28, 2022

【GMO Payment Gateway】

More than 100,000 merchants, including online businesses such as online shops, NHK, National Tax Agency, and public entity in Tokyo, etc., We provide payment-related services and finance-related services. Focusing on payment services, we utilize value-added services and finance technologies that contribute to the growth of merchants payment method We provide services that meet funding needs, and our annual Transaction value exceeds 10 trillion yen. (Consolidated figures as of the end of June 2022)
As a leading company in the payment industry financial institution, we provide various Provision of payment and finance-related solutions and platforms, infrastructure of payments and so on. We are also promoting global expansion such as the development of payment-related services overseas and strategic investment and financing of cutting-edge FinTech companies overseas. We will continue to drive new innovations and contribute to the realization of a sustainable society and the progress and development of society.

[Press Inquiries]
GMO Payment Gateway, Inc.
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+81-3-3464-0182
GMO Internet Group Inc.
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+81-3-5456-2695
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[Contact for inquiries regarding services]
GMO Payment Gateway, Inc.
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info@gmo-pg.com

[Hyundai Card Corporation] (URL: https://www.hyundaicard.com/index.jsp

Corporate Name Hyundai Card Corporation
Location Yeongdeungpo-gu, Seoul, South Korea
Representative Vice Chairman & CEO Ted Chung
Business Description ■ finance
Capital KRW 802.3 billion

[Bankware Global Inc.] (URL: https://www.bankwareglobal.com/

Corporate Name Bankware Global Inc.
Location 3rd Floor, 86 Unification Road, Jung-gu, Seoul, South Korea (Babien Building, Hawa-dong)
Representative Co-CEO Kyungjo Lee
Co-CEO Eunjoong Lee
Business Description ■ finance software Development, supply, construction and maintenance
Capital KRW 1.12 billion

[Exa Inc.] (URL: https://www.exa-corp.co.jp/

Corporate Name EXA CORPORATION
Location Kanagawa Prefecture Yokohama City Nishi Ward Minato Mirai 4-4-5 Yokohama iMark Place 2nd Floor
Representative President & CEO Tomosuke Senda
Business Description ■ Consulting on overall systems such as business improvement and concept formulation
■Planning, design, development, construction, operation, and maintenance of information systems
■ Development, sales and service provision of software and hardware
■Outsourcing of information systems and provision of cloud services
Capital 1,250 million yen

[GMO Payment Gateway, Inc.] (URL: https://www.gmo-pg.com/)

Corporate Name GMO Payment Gateway, Inc. (TSE Prime Securities Code: 3769)
Location 1-2-3 Dogenzaka, Shibuya-ku, Tokyo Shibuya Fukurasu
Representative President & Chief Executive Officer Issei Ainoura
Business Description ■ Comprehensive payment related services and finance related services
Capital 13,323 million yen

【GMO Internet Group Inc.】 (URL: https://www.gmo.jp/

Corporate Name GMO Internet Group, Inc. (TSE Prime Securities Code:9449)
Location Cerulean Tower 26-1, Sakuragaoka-cho, Shibuya-ku, Tokyo
Representative Representative Director and Group Representative Masatoshi Kumagai
Business Description ■ Internet infrastructure business
■ Internet advertising / media business
■ Internet finance business
■ Cryptographic assets business
Capital 5 billion yen

September 28, 2022

Hyundai Card Co., Ltd.
Bankware Global Co., Ltd.
EXA CORPORATION
GMO Payment Gateway, Inc.

The four companies of Hyundai Card Co., Ltd. (Vice Chairman & CEO Ted Chung , "HCC"), Bankware Global Co., Ltd. (Co-CEO Kyungjo Lee and Co-CEO Eunjoong Lee, "BwG"), EXA CORPORATION President & Chief Executive Officer Tomosuke Senta, "EXA") and GMO Payment Gateway, Inc. (President & Chief Executive Officer Issei Ainoura, "GMO-PG") have agreed to collaborate to launch H-ALIS (Hyundai Advanced Library Card Information System) in Japan, the credit card core platform provided by HCC, the No.1 company(※1)in the number of PLCC (Private Label Credit Card) issued in South Korea. H-ALIS will be localized for the Japanese market and offered by GMO-PG as "Credit Card Issuing Support" of the "GMO-PG Processing Platform" service from October 2023, as part of its BaaS (Banking as a Service)(※2)to financial institutions such as banks and credit card companies.
H-ALIS is a package software with a notable track record, that enables credit card issuing by setting parameters and default templates that does not require any programming work. Therefore, this system makes it possible for Japan's financial institutions and financial service operators to issue credit cards swiftly and to reduce the development cost.

  • (※1)Survey results as of Aug. 2021 by HCC.
  • (※2)Refers to organizations that are financial license holders to provide financial functionality (APIs) as a service to financial institutions.

Innovative Credit Cards Issuing System to be Launched in October 2023

【Background and Overview】

Japan's cashless penetration rate as of 2021 stands at 32.5%. Japan's government is aiming to raise this to the global standard of 80% in the future through initiatives that promote cashless payments.(※3)In particular, payment using credit cards are widespread, accounting for 85.3%(※3)of the value of cashless payments, leading to rising need by operators to swiftly issue various types of credit cards such as proper cards(※4), affiliated cards as well as virtual cards, etc. going forward.
Given this backdrop, the four companies of HCC, BwG, EXA and GMO-PG will provide Japan-localized H-ALIS as an ASP service, the credit card core platform provided by HCC, the No. 1 company in issuing affiliated cards in South Korea, a country known for its advanced credit card usage with a credit card payment ratio of 75.4% (as of 2017) of private consumption.(※5)
The launch in Japan will be carried out by GMO-PG as "Credit Card Issuing Support" of the "GMO-PG Processing Platform" service, which is a BaaS support service for financial institutions such as banks and credit card companies. This service will be provided for a monthly fixed rate to keep cost levels low for customers. In addition, work burden of credit card issuing can be significantly reduced for financial institutions and financial service operators that implement this service, as GMO-PG will ensure that the system is fully compliant with PCI DSS(※6)as well as secure the data center and system operation personnel. Furthermore, the scalable API core system will enable adding on various value-added services to cardholders and linkages to external FinTech service providers.

  • (※3)Payments Japan Association's "Cashless Roadmap 2022" (announced on August 3, 2022).
  • (※4)Independently by the card issuer refers to the issued credit card.
  • (※5)Reference to Ministry of Finance's report on the study group on innovation in the digital age, Chapter 9 on South Korea (announced on June 2019).
  • (※6)Refers to the global security standards applied to the credit card industry.

【Collaboration between the Four Companies】

South Korea's HCC holds the patents for H-ALIS, the credit card core platform, and will provide the license for H-ALIS to GMO-PG. BwG will be responsible for customization and system maintenance as the marketer of H-ALIS' applications. EXA will provide customization to fit the diverse needs and specifications of customers, onboarding and operational integration services by leveraging its 35-year track record in development and systems operations and its leadership role in localizing H-ALIS for the Japanese market. GMO-PG will offer the Japan-localized H-ALIS as an ASP service by carrying out the sales activities, development and FEP in the Japanese market(※7).

  • (※7)FEP stands for Front End Processor and refers to the system required for a credit card company to connect/access an external network.

【Japan Launch of H-ALIS】

H-ALIS is a core platform for credit cards provided by HCC in South Korea. Localization is being carried out to align H-ALIS for the Japanese market such as Japanese language, payment methods, credit card networks and laws and regulations. H-ALIS is a package software characterized by its flexibility and high scalability, enabling efficient credit card issuing operations. GMO-PG will offer this system as the "Credit Card Issuing Support" of "GMO-PG Processing Platform" service, as part of its BaaS support provided to financial institutions and financial service operators.

■ Low-cost and swift credit card issuing
Credit cards can be issued swiftly by using the default templates and setting the parameters, thereby reducing the development cost and labor cost as well as shorten the lead time for issuing to around one week compared to the conventional several months.
■ Smooth system linkage by leveraging API base
Scalability of the API base enables easy linkages with external service providers such as credit information organizations and printing companies.
■ Rapid upgrading/improvement of functions
The system uses the widely adopted Java script which enables rapid functional upgrades and improvements even after implementation.

【Hyundai Card Co., Ltd.】

Hyundai Card, a financial arm of Hyundai Motor Group, has been leading Korea's credit card industry with a wide range of products optimized for the lifestyles of its card holders. In 2021, Hyundai Card reached 10 million members thanks to the overwhelming growth of its' PLCCs (Private Label Credit Card) and custom card benefits established by utilizing data science . Initially a traditional finance company, Hyundai Card has transformed into a financial technology company excelling in AI and data science.

【Bankware Global Co., Ltd.】

Bankware Global was established in October 2010 as a financial software company of South Korea that develops and provides next generation core-system software systems such as core banking, credit card core and installment lease finance to banks and financial companies. Bankware Global services over 100 corporate customers in 6 countries(※8)that are leading bank and financial institutions in Asia. In Japan, the subsidiary Bankware Japan offers software marketing for credit card and banking systems, system architecture and maintenance business.

  • (※8)As of September 28, 2022.

【EXA CORPORATION】

EXA CORPORATION promotes DX by leveraging cutting edge technology and comprehensively offers various upstream services ranging from consulting to development, operation and maintenance services.
In particular, EXA has been involved in building out the payment systems for over 40 companies(※9) over its 35-year track record in the payment industry and contributes to corporate digital innovation through services and system development capability that integrates abundant operation expertise and cutting edge technology.

  • (※9)As of September 28, 2022.

【GMO Payment Gateway, Inc.】

GMO-PG offers comprehensive payment-related services and financial-related services to over 100,000 merchants such as online operators including internet shops and public sector organizations such as NHK, National Tax Agency and the Tokyo Metropolitan Government. The annual transaction value exceeds \10 trillion (as of end of June 2022, consolidated basis) by primarily focusing on payment services such as value-added services that contribute to the merchant's growth, payment methods that utilize financial technology and service that respond to funding needs.
As the leading company in the payment industry, GMO-PG offers payment, financial-related solutions and platforms and builds payment infrastructure for business operators and financial institutions that are pursuing cashless adoption and DX. In addition, GMO-PG is also expanding globally by deploying payment-related services and through loans and equity investments into overseas cutting-edge FinTech companies. GMO-PG is committed to drive innovation to realize a sustainable society and to contribute to the advancement of society.