Innovation comes from rural areas: Why is GMO-PG now insisting on "face-to-face" in western Japan?

The Kansai and West Japan areas have produced many world-class companies. As the DX wave is surging in this area, many companies are facing a common dilemma. "I feel distant from vendors in Tokyo" "Web conferencing alone cannot convey the subtleties of the field".

In today's world, where sales activities are moving online in the name of efficiency, there is a team that continues to focus on "expanding bases in Osaka and Fukuoka" and "in-depth face-to-face dialogue". GMO Payment Gateway (hereinafter referred to as GMO-PG) West Japan Department.

Why do they continue to visit customers? Behind this are the market-specific challenges, the trust that can be built only when face-to-face, and the pride in the overall strength that supports the growth of companies beyond the boundaries of payment. Masahiro Meren, who leads the Osaka office, will talk about his strategy and enthusiasm.

Introduction: DX lag and information asymmetry in a huge economic zone of 191 trillion yen

── First of all, please tell us about the market characteristics of the western Japan area where you are under your jurisdiction and the mission you are facing there.

Bulletin:

The Osaka office, where I am based, is in collaboration with the Fukuoka office to form a "West Japan Department". The Osaka office is in charge of a vast area west of the Tokai region, excluding Kyushu and some parts of the Chugoku region.

The GDP of this area is about 191.7 trillion yen, which is about one-third of Japan's total. In addition, there are about 1,000 listed companies alone, and it is also a key point for "manufacturing" and "distribution" that support the Japan economy.

In this area, we are developing a "relationship sales model" that supports the growth of merchants using PG Multi-Payment Service, which provides a variety of payment method in one place, mainly online, to promote operational efficiency such as cashlessness, and to develop new merchants.

However, if you look at the actual state of the market, the reality is that there is a big difference between the Tokyo metropolitan area and the Tokyo metropolitan area due to DX promotion, including cashlessness. For example, the cashless ratio of restaurants is about 60% in Tokyo, while Osaka is only about 44%. It indicates that a delay of about 16 points exists.

GMO-PG Masahiro Muren

── Why is that "delay" born?

Bulletin:

I think there are two main factors.

One is a "conservative" corporate culture in a good sense. Companies in western Japan, especially in the Kansai region, have a long history and have established existing business models. Therefore, I think that there is an aspect that is difficult to foster a sense of crisis that "management will tilt if we don't change to digital now" compared to Tokyo, where there are many startups.

The other is "information asymmetry (information gap)".

The latest payment trends and DX success stories that are flying around in Tokyo have not yet reached customers in the west Japan. Or, even if they have arrived, there are many cases where they are regarded as "fires on the other side".

However, when I looked at the scene, the situation was not waiting. The labor shortage has become serious, and due to the rapid increase in inbound tourists (foreign visitors to Japan) in Kyoto's shopping districts, there are situations where business cannot be done by exchanging cash alone.

There is a gap between "the cautious attitude of management" and "the screams of the field". Our greatest mission is to fill this gap and evolve our customers' businesses into a sustainable form.

"A base that has been built up with Osaka for more than 20 years, Actual is based on a sense of security. Organizational Dynamics and Trust Unraveled by Face-to-Face Sales

── Many SaaS companies and foreign payment processing company companies (PSPs) tend to complete sales online to improve efficiency. In this context, why does GMO-PG have such a scale of base in Osaka and insist on "face-to-face"?

Bulletin:

This is all about the sense of security that customers receive from them, "the sense of distance that comes as soon as you call." In fact, we are probably the only payment processing company company (PSP) that has been based in Osaka for more than 20 years and has a sales representative.

However, the reason why we insist on face-to-face is not just to "listen to your needs".

The biggest reason is to grasp the "dynamics" and "heat" within the customer's company with high resolution, which cannot be seen through web conferencing, and to build a relationship of trust as a partner for organizational transformation and business improvement.

For example, let's say there are three people in charge on the screen of a web conference. Through the screen, you cannot read the relationship between the three people, who has the actual decision-making power, and who is responsible for which mission.

However, if you exchange business cards face-to-face and talk to each other knee-to-knee, you will receive non-verbal information such as "Oh, this Manager and the manager have a very strong relationship of trust" or "This person in charge is enthusiastic, but he is having trouble persuading the company."

West Japan Department helps more than just digitally natives. Rather, many customers are in the phase of "transitioning an already established business to digital from now on". That's why it's not just about introducing tools, it's also about reviewing your existing work flow and sometimes the way the organization is. At that time, if we do not have a deep understanding of the internal situation of the customer's organization, we will not be able to make accurate proposals.

── Do you sometimes support the person in charge of "persuading the company internally"?

Bulletin:

Often. Even if the person in charge of the field has a high level of literacy and enthusiasm, it is often not communicated to the executives who have the right to make decisions. In such cases, we may create materials and attend board meetings with the person in charge to give presentations.

While the word "DX and digitalization" has taken on its own, what is often left behind is "dialogue between people."

"Why do we need DX now?" and "What are other companies doing?"

There are projects that can only be moved by talking directly to us as third-party experts. This is the "accompanying support" we want to provide, and we believe that it is the foundation of trust in business.

Case study: DX of a university life cooperative. Exhaustion at the site saved by comprehensive strength beyond payment

── Please tell us if there are any symbolic examples that were resolved only because of face-to-face in-depth intervention.

Bulletin:

I am impressed by the project in which about 20 university cooperatives (university co-ops) in the Chugoku-Shikoku area have replaced the payment system at once.

── What specific challenges did you face?

Bulletin:

At first, the consultation was "solving problems in terms of the functionality of the payment system", but as we asked about the extensive business situation, including payment, we came to see more fundamental business issues.

In particular, the accountants in charge of the field were exhausted by the work related to "pay-out". The university co-op returns the investment to the student upon graduation. In the past, this was done on Bank transfer, etc., but there were many "incorrect account numbers" applied by students. It was difficult to contact the other party because they had already graduated, and it took a lot of time and cost to "regroup due to inability to transfer" and "identity verification work".

── That's a problem that can't be solved by simply adding Credit card payment.

Bulletin:

You are right. What we presented here was not just "payment processing company (deposit)", butGMO-PG's unique "comprehensive service capabilities (ecosystem)".

We combined the following solutions to create a proposal to centralize the entire flow of money.

1. Introduction of "GMO-PG Remittance Service":
   We digitized our investment return operations with GMO-PG Remittance Service, eliminating the need to keep account information. This greatly reduces errors due to incomplete account information and the hassle of contacting students. We have made it possible to centrally manage not only the entrance of money (payment) but also the exit (remittance).
2. Real estate (rent) payment card:
   In addition to product sales and meal coupons, credit cards are also accepted for rent payment of real estate managed by the co-op, improving convenience.
3. Vulnerability Diagnosis (Security):​
   In collaboration with a security company that is a partner company of GMO-PG, we conducted vulnerability diagnosis of websites and systems. Not only "offense (convenience improvement)" but also "defense (security)" has been strengthened.

── What kind of reaction did you receive from customers as a result?

Bulletin:

They were very pleased, saying, "Not only have we been able to reduce accounting costs, but we have also eliminated the stagnation of work and mental burden caused by not being able to contact students."

If we had only proposed "comparing the functions of the payment system", we would not have been able to solve such a deep problem. I think it was because I went to the site and felt the hardships of the accountants firsthand that I was able to arrive at a solution by combining multiple solutions.

Bulletin:

In another case, the "mobile gift certificate platform (digitization of gift certificates with premium)" project demonstrated the strengths unique to regional bases.

With the termination of a certain service, local chambers of commerce and industry were in danger of continuing the premium gift certificate business. For municipalities and chambers of commerce who are unfamiliar with digital, we visited the site many times and provided detailed support, and we were able to successfully complete the system migration.

I am proud that "I will explain remotely from Tokyo" is a project that has never been completed.

Learning culture as an organization. Security support system that turns "somewhat anxious" into "reliable peace of mind"

── Recently, credit card fraud and cyberattacks have increased rapidly, and many businesses are worried about security. West Japan Department So what kind of system do you have?

Bulletin:

As you say, security is the lifeblood of a company. However, for many customers, it is difficult to determine what is the risk or whether their company is being attacked. When something goes wrong, whether or not there is a partner who can be consulted immediately under unstable circumstances will determine the continuity of the business.

The strength of GMO-PG is that it does not depend on the skills of individual salespeople, andas an organization, it is constantly updating the latest information.

── What specific initiatives are you doing?

Bulletin:

In fact, at the Osaka office, we have been working with a security company to hold a monthly security study session in a face-to-face format for more than a year.

Every month, security professionals come to the company to give lectures on the latest fraud methods and trends in West Japan Department changes.

── It's amazing that it has been going on for more than a year.

Bulletin:

Yes. Security-related updates are very important.

In addition, we also have weekly knowledge sharing meetings and free discussions within the sales department. There, we share success and failure examples such as "This customer had such an unauthorized attack" and "This countermeasure was effective" with everyone, regardless of their position.

Combine not only the knowledge of one sales rep, but also the knowledge of the entire team and the expertise of partner companies to protect customers. I am studying every day so that I can be proud that "the western Japan area is stronger than Tokyo."

We believe that this "enthusiasm for the field" and "systematic learning" are the greatest reassurance we can provide to our customers.

Future prospects. Starting from BtoB payment, we will take a solid step towards financial and management issues

── Are there any areas in the western Japan area that you would like to focus on in the future?

Bulletin:

DX of business-to-business transactions, or BtoB payment.

In particular, Kansai has many world-class manufacturing companies and wholesale customers. We would like to strengthen our proposals from the perspective of cash flow control, rather than simply providing payment method to these companies.

──What are the benefits of DX in business-to-business transactions?

Bulletin:

Currently, interest rates are entering a phase of rising interest rates, and "reducing borrowing costs" and "improving cash flow" are management issues for companies.

For example, you can leverage GMO-PG's "Early Payment Service" to speed up the collection cycle of accounts receivable, or introduce credit cards to company-to-business payment to control the timing of cash-outs while outsourcing credit management to strengthen your financial position.

We can also propose to optimize payment sites while complying with laws and regulations, such as responding to the Act on the Optimization of Small and Medium-sized Contract Transactions (formerly the Subcontract Act).

Changing the payment changes the company's finances.

Because GMO-PG can provide comprehensive finance services such as remittances and lending, we are confident that we will be able to delve deeper into the management issues of manufacturing companies in the Western Japan.

Innovation comes from rural areas. To a partner who solves unsolvable questions together

── Finally, please give a message to businesses in the western Japan area.

Bulletin:

I have always believed that "innovation (innovation) comes from rural areas."

Many of the global companies that have changed the world representing the Japan, such as Toyota Motor Corporation, Nintendo, Panasonic, and Fast Retailing (UNIQLO), were born in rural areas rather than in Tokyo.

Many customers who are currently considering launching e-commerce or DX may not yet have a clear "solution".

"I don't know what to do" and "I don't know how to do it for my company."

That's why let us have a face-to-face discussion. I am convinced that it is from brainstorming that cannot be born in web conferencing, but knee-to-knee, that new "0→1" ideas that will create the next era will be born.

GMO-PG has Japan top-notch payment features and value for money, and most importantly, a generous "go-to-the-go" support system and enthusiastic sales representatives.

As a partner connected by dialogue and trust, rather than just a system provider, let's create a new business and a new normality together from here in western Japan.

Consult with the GMO-PG West Japan Area Representative (face-to-face and online available)

*It will be smooth if you write "West Japan area desired".