No. 1 water server market share: Proposal of GMO-PG to support premium water

Premium Water is a natural water delivery service that boasts the No. 1 share of the water server market. It delivers natural water from carefully selected domestic sources without any heat treatment. Premium Water's payment system has been replaced with GMO Payment Gateway's (GMO-PG) Online Payment Service, "PG Multi-Payment Service." We asked about the issues that GMO-PG's service has resolved. (Company names and positions are current as of May 2023.)

What is premium water that stands out in natural water delivery services?

Premium Water is the flagship brand of Premium Water Co., Ltd. (hereinafter referred to as "Premium Water"), which provides a service that regularly delivers natural water to the homes of water server contract.

Non-heat-treated natural water that is particular about deliciousness
A wide variety of water servers,
In addition to one-way containers that are easy to dispose of after use,
Combined with the convenience of being able to complete online procedures such as delivery changes, etc., the market share has expanded.

In 2022, the number of customers in Japan's home delivery industry is said to be 4.82 million units*1.
The number of customers held by the Premium Water Holdings Group as a whole is approximately 1.54 million*2.
It boasts the No. 1 market share in Actual in Japan.

*1 From the Statistical Survey of Home Delivery Water (2022 / According to the Japan Home Delivery & Server Association)
*2 As of the end of March 2023

The No. 1 home delivery business is supported by various mechanisms. Premium Water, which started with natural water from Mt. Fuji, currently has eight carefully selected water collection sites that can be said to be the best in Japan. We have also built a logistics system that can efficiently deliver from these water collection sites to all parts of the country through our own distribution network. The marketing that stands out further continues to support the breakthrough of premium water by growing the number of customers.

Credit card payment 's PSP Replacement Supporting Flagship Business

Premium Water has been Credit card payment with other payment processing company providers (PSPs) for a long time. Yuji Hamiguchi, Senior Executive Officer of Premium Water Holdings Co., Ltd. and Senior Managing Director Systems Division General Manager of Premium Water Co., Ltd., said that issues were emerging as the business expanded.

"As we proceeded with business integration, we took over and used the Credit card payment system that was originally used in other companies' PSPs. At that time, the basic style was to capture water shipment Actual on a daily basis and reflect the rate data. In addition, there were some services that were billed monthly, and that amount was reflected at the end of the month."

Yuji Hamiguchi

"As the number of customers increases, the volume of Credit card payment data grows,
In addition to the problem that the PSP side of other companies that are using it cannot accept it as it is,
Changes in commission rates and authorization methods are also presented.
It is very troublesome for our system that fee data cannot be processed smoothly.
I started considering replacement."

GMO-PG sales Koji Okabe had been communicating with Mr. Hamaguchi even before considering replacement.
"The first time I had an interview was around 2016, and even if we didn't introduce the service, we took the time to bring various proposals."

GMO-PG Koji Okabe

Replacing an existing PSP requires actions involving the sales department and the system department. payment Mr. Hamiguchi says that it was necessary to be prepared to implement the replacement of the service.

"I've always wanted to change the PSP. However, if you change the payment service, you will have to spend a lot of man-hours on system repairs.
For about three years, we were unable to raise the priority of system renovation despite receiving suggestions from Mr. Okabe, but due to various timing and factors, we proceeded with the study in earnest."

At the time of consideration, several other companies were nominated in addition to GMO-PG.
"In considering replacement, we received proposals from PSPs with whom we have a relationship with other businesses and payment method in addition to GMO-PG.
Particular emphasis was placed on the realization of monthly card payment operation with a controlled NG rate and fee rates.
However, the other PSPs you proposed did not meet any of the conditions we wanted, such as rates and payment cycles. In the end, GMO-PG presented us with a rate and an operation plan, and we decided that we had no choice but to do it, and we came up with system man-hours."

After applying in July 2019, the operation began in about three months.

"While the existing system was running, we proceeded while drawing a schedule. I had been interviewing Mr. Okabe for about three years, so I was fortunate that he fully understood our situation.
The general manager of our system department also participated in the meeting, and we proceeded with development while defining requirements and confirming specifications at the same time.
We have also received feedback from the system department that this replacement was the toughest in the development so far.
However, I feel that the benefits of replacing it with PG Multi-Payment Service were greater."

Many benefits and improvements gained from switching to GMO-PG

payment System Replacement is also an important part of the transfer of customer credit card information handled by PSP.

"Transferring credit card information was really difficult. Since we do not handle credit card information in-house, we decided to transfer from the existing PSP to GMO-PG with a third-party company (BPO operator), but there should be no deficiencies, and the schedule must be strictly adhered to, so it had to be proceeded extremely carefully. Even in the existing PSP, there were not many transfers of such a large number of data.
We were able to resolve each and every one of these issues in cooperation with GMO-PG, and as a result, we were able to overcome them in a way that was satisfactory to our company."

■Flow of credit card information

After the replacement, Mr. Hamiguchi said that there were benefits from PG Multi-Payment Service.
We also introduced feedback from internal stakeholders about specific improvements.

"In terms of system, PG Multi-Payment Service has a low failure rate and frequency of occurrence.
Still, maintenance is infrequently, so I'm glad I switched.
Another major advantage was that the existing PSP had content that required individual development, but GMO-PG was prepared as a function.
From the operations side, we have also said that the management screen of PG Multi-Payment Service is easy to use, and that it has been improved in terms of practical work because it has been well maintained with documentation such as support manuals."

Premium Water also uses PG Multi-Payment Service Bank transfer (Virtual Account).
Bank transfer in a virtual account is a dedicated account for transfers for each transaction, and GMO-PG notifies you of the deposit as soon as it is made.

"The biggest benefit of introducing a virtual account is that the deposit data is reflected immediately. Currently, we issue virtual accounts to all end users and use them to collect uncollected assets," says Mr. Hamiguchi.

The key to replacement is the relationship of trust between the person in charge

While payment systems are behind the services provided by businesses, they also play an important role in business. Mr. Hamiguchi believes that trust is important for the payment partners who support the business.

"As the business expands, a small misunderstanding or mistake can be a big problem.
Since it is an exchange between companies, it is very important to build a relationship of trust between the person in charge.
In the midst of all the problems we've experienced, it's great for GMO-PG to always ask if there's anything we can do to help them understand our business."

"Since the replacement, we have been able to operate without any major problems, which has led to trust. I remember that when I contacted Mr. Okabe that this was difficult, he responded immediately."

The number of transaction data treatments in premium water is enormous. The number of GMO-PG processes has also increased significantly after system renovation. We have built a system that can handle a huge number of processing cases without any problems.

No.1 Business Partner GMO-PG

Credit card payment accounts for the highest percentage of premium water usage payment. Premium Water also focuses on increasing the percentage of Credit card payment users. GMO-PG can also help you with this initiative.

"New contract are currently choosing Credit card payment or carrier payment, and credit card users feel less error-free and more stable.
Therefore, we have established a system to issue credit cards immediately at the time of new contract.
We consulted with GMO-PG about this group and introduced them to our initiatives.
In addition, we have received proposals from various angles, such as holding business meetings with local banks in the water collection area in connection with the online shop Premium Mall, which is limited to contract people."

payment GMO-PG's sales strength is not only to introduce services, but also to continue to accompany them as business partners.

"Premium Water is taking on various challenges in business and initiatives, and in order to respond to them, we have been regularly taking on time even after the introduction of the payment service. We would like to continue to make meaningful proposals with a wide range of approaches, without overlooking not only sales but also the timing of system development."

Premium Water, which advocates "Water and the Future," continues to take on the challenge of proposing valuable services to end users.

"It is also extremely important that end users feel the superiority of the Premium Water brand, which is unheated natural water that is made with a focus on delicious taste.
Furthermore, we hope to provide not only water but also unrivaled services that will satisfy end users," said Hamaguchi.

What are your expectations for GMO-PG in the future? To the question, Mr. Hamiguchi answered as follows.
"We are receiving more and more new proposals, which is very helpful. I hope we can continue this state in the future.
In addition, I would like GMO-PG to cooperate with GMO-PG as soon as the payment method service is introduced to the world. For example, if we want to introduce QR code payment ourselves, we have to develop it ourselves, but just hearing from GMO-PG that it has already been implemented makes it easier to proceed with the discussion.
We have received suggestions from time to time that need to be addressed, such as security measures, so we will continue to consider them in the future."

GMO-PG Okabe Premium Water Mr. Hamiguchi

GMO-PG will provide a service that will always be close to the future created by premium water.

Photo: Ryo Tada