A digital strategy of 11 million members that goes beyond the railway. Why JR West Japan calls GMO-PG a "co-creation partner"

The business model that once seemed solid and based on "mobility" was forced to change due to the pandemic in 2020. West Japan Railway Company (hereinafter referred to as JR West Japan) has decided to transform into a company that supports "life" itself, and has built a "WESTER ID" and a "common payment platform" to support it. Currently, the number of members has exceeded 11 million (as of the end of December 2025).

GMO Payment Gateway (GMO-PG) was chosen as a partner for major transformation. Among the many payment processing company operators, why GMO-PG? Yoshiaki Higuchi and Yuhiko Sakamoto, who are responsible for promoting DX at JR West Japan, talked about the behind-the-scenes and prospects for the future.

Getting out of the crisis. The key to digital strategy is "integration of identity, point, and payment"

The shock of "the day people disappeared from Osaka Station"

JR Japan is an infrastructure company that develops diversified businesses that are close to people's lives, such as station stores, hotels, and real estate development, in addition to the vast railway network from Hokuriku to northern Kyushu. However, around 2020, the business portfolio, which was supposed to be its strength, was put to the test.

"I witnessed the unbelievable sight of people disappearing from Osaka Station due to the corona disaster. Most of the businesses we develop are linked to the movement of people. The only thing that was less affected was the real estate business, and other than that, we were in a very difficult situation."

Looking back on that time, Mr. Yoshiaki Higuchi of CCoE and Modernization Manager of the System Management Department of the Digital Solutions Division looks back on that time. The company was keenly aware of the risks of the one-legged approach to the railway business, and in 2020, it made a major shift to its digital strategy. First, the Digital Solutions Division was established as an organization under the direct control of the president, and the challenge began.

JR West Japan Yoshiaki Higuchi

Disparate payment leads to a "fragmentation of the customer experience"

However, there were major challenges in the actual field. The JR West Japan Group's services were individually optimized for each business.

"The payment system (PSP) used for each service is different, and the IDs for using the service are also different. This means that every time a customer tries to use a new service, they have to re-enter their credit card information. This time and effort is a factor in what is called "cart dropout" in the e-commerce world. Above all, we were unable to connect the customer experience across the entire group and were unable to accurately grasp customer information."

JR Japan's goal is to seamlessly connect all services within the group, both real and digital, such as train reservations, hotel accommodations, shopping at stations, and point usage, with a single ID to enhance the value of the customer experience. That was the beginning of the "WESTER ID" initiative.

As IDs and points became more common, the integration of payment parts was also essential.

For Yuma Hayashida of GMO-PG, who has been in charge of JR West Japan since the time of the plan, what left a big impression on him was the comment of the person in charge of JR West Japan at the time, "It is not enough to do without payment payment, and the true user experience will not be completed without integrating ." In order to accelerate the digital strategy, there was an urgent need to create a "common payment foundation" that could be used across the Group.

The key points of JR Japan's digital strategy are as follows:

• Standardize IDs, points, and payment for each service that were disparate
• Improvement of customer experience due to standardization (prevention of abandoned carts within group services)
• Future-proof connectivity with payment services

Don't choose based on "function" alone. The decisive factor is the "ability to accompany non-finance" companies

Four selection criteria and GMO-PG's "proposal ability"

In selecting partners for the common payment platform, JR West Japan focused on four points: scalability, security, cost, and people (proposability and reliability).​

In addition to credit cards, we support a variety of means such as code payment and carrier payment. And it is a collaboration with Card Present Transactions terminals with an eye on the possibility of OMO (Online Merges Offline) in the future--。 For JR West Japan's RFP (Request for Proposal), which has many requirements, proposals from multiple payment processing company companies were considered.

It is said that the main reason why JR West Japan finally selected GMO-PG was that it was a "proposal with a sense of ownership" that does not appear in the specification table.

"There are other companies that have the necessary functions, payment processing company but GMO-PG did not simply propose products (functions), but thought together about 'how to solve the problems of JR West Japan.' As a railway company, we are a non-finance company and not an expert in payment. That's why we needed a partner who would sincerely face the common sense of the industry and consultations that sometimes seem difficult to realize."

Shortly before JR West Japan turned to its digital strategy, GMO-PG joined KANSAI MaaS as one of several payment processing company companies. "Actual, who accompanied us in organizing the MaaS platform and making proposals, was also evaluated, and we were also approached by the WESTER ID concept" (GMO-PG Hayashida)

GMO-PG Yuma Hayashida

Trust that "I can run with this company"

In the evaluation materials within JR West Japan at the time of selection, it seems that there was a high evaluation of GMO-PG as "no problem from any point of view, such as proposal ability, cost, Actual, and future potential".

At that time, JR West Japan was about to release a rush of digital services. MaaS app, e-commerce mall, and proprietary code payment service "Wesmo! (Wesmo)"--。 In a situation where these must be developed quickly, the speed of GMO-PG's response and ability to build a system were encouraging.

"At that time, we were in a time when we were moving forward with our digital strategy at once, and a sense of speed was important, but GMO-PG kept up with that sense of speed.

"In fact, the period from receiving a proposal request from JR West Japan to the selection of payment processing business and the speed of decision-making were faster than I had imagined, but I decided to respond thoroughly with my boss at the time and aim to provide a service that exceeded my expectations."

2. Chords challenged by 5 people payment "Wesmo!" Launch

The power to turn "amateur ideas" into business

In parallel with the construction of a common payment platform, the railway company's first unique code payment service "Wesmo! Wesmo)"in the first half of the 2010 Games. However, when the project was first launched, the system was only "2.5 people", including Mr. Higuchi. It started from a situation where the system manager was also absent.

Mr. Higuchi said that he learned from GMO-PG how the industry is moving in terms of competing in the cashless industry.

Fortunately, it was also physically very close, so I often visited him and asked him if he could put together such a scheme or what should be done with the franchise strategy. While GMO-PG has knowledge of online transactions, this is still an amateur. Even for outlandish ideas, they always came up with constructive countermeasures, saying, 'It's difficult due to the rules of the industry, but this method is possible.'"

Sometimes engineers were present to discuss technical feasibility on the spot. We are not just a "provider of payment systems", but a "partner in business development" who thinks and creates together. This stance of GMO-PG supported the service in a short period of time.

"Among the many services, I think it's natural that the product is good, and GMO-PG works with us to think about how to solve our problems. I feel that it is 'first-class'."

Like Mr. Higuchi, Mr. Yuhiko Sakamoto, Chief of CCoE and Modernization of the System Management Department of the Digital Solutions Division, who is involved in the common payment platform, also evaluates the response of GMO-PG. "I think that GMO-PG is not only a PSP for Wesmo!, but also a person who can suggest the future possibilities of Wesmo!

JR West Japan (from left) Yoshiaki Higuchi and Yuhiko Sakamoto

Proof of "trust" that supports systems and people

The culture unique to infrastructure companies called "stable operation"

It has been about two and a half years since its introduction in 2023. The number of members has exceeded 11 million, and the WESTER ID and common payment platform continue to support the huge transactions of the JR West Japan Group. For JR West Japan, an infrastructure company, "the system does not stop" is an absolute condition.

Mr. Sakamoto says: "PG Multi-Payment Service has almost no obstacles, and because of the culture of 'stable operation is the norm' as an infrastructure, even within the company is not aware of the existence of the system. I feel that this is proof that the service is of very high quality."

Behind the scenes, it was not only PG Multi-Payment Service itself that supported that "natural stability", but also the power of "people".

Responding to Obon night alerts

Mr. Higuchi has an unforgettable episode. Unique payment service "Wesmo!" It was not long after the service was put in.

"I received a system notification from GMO-PG informing me of the possibility of a fraud (credit master attack). This is not good, how should I deal with it?' and contacted Mr. Hayashida of GMO-PG and Mr. Kimura, who is also in charge of our company, via Slack."

Hayashida immediately connected the phone and explained the situation to Mr. Higuchi.

"We were able to analyze it on the spot and receive a suggestion to 'introduce a mass attack blocking service right now,' and we were able to complete the procedure on the spot, and thanks to the quick response, we were able to prevent the spread of damage," says Higuchi.

This series of events that suppressed credit master attacks through cooperation between the two companies can be said to be an example of how the risk was contained by the power of "people".

"Even in daily operations, when I had a problem, they immediately rushed to me, and I felt safe that not only the system but also the people were supporting me 24 hours a day. This sense of trust is irreplaceable."

From "Kuroko" to "common wallet". The future of OMO envisioned by JR West Japan

Evolution as a "wallet" for the group

Currently, JR West Japan is trying to further evolve the "Common payment Foundation". Of particular note is the participation of the main service, the Internet reservation "e5489". This will allow you to make Shinkansen reservations, top up your balance to Wesmo!, and shop online at WESTER Mall, etc., on a single payment platform.

"With the addition of large-scale rail services such as 'e5489', the importance of the payment infrastructure will increase. For example, the card registered in the Shinkansen reservation can be used for other services, and conversely, if it is deleted, it will not be usable. I personally think that it is necessary to have a branding that makes customers aware of and understand the convenience and rules of such a 'common digital wallet for JR West Japan'."

"GMO-PG has the best Actual as a payment processing company, and has a history of playing a payment for various businesses as a black child.

A future where authentication and payment are "N-to-N"

What JR West Japan is looking beyond is the realization of true OMO (Online Merges Offline). Higuchi predicts that payment will become more and more "online" in the future.

"The experience at a hotel or store is real, but the act of payment itself will become a world where it is processed in the background (online) through apps and facial recognition, and it may no longer even need to stand in front of a Card Present Transactions device."

Face recognition, RFID, smartphone touch... "Authentication methods" are diversifying, and the "payment method" associated with them also range from postpay and prepaid debit. These are freely connected on an "N-to-N" basis, and users can enjoy services smoothly without being aware of the hassle of payment.

"In order to realize such a future, it is essential for us to co-create with GMO-PG, who is a professional in payment processing company payment, with both real and digital assets. I strongly hope so."

How to choose a partner that will lead to DX success

The case of JR West Japan shows the importance of choosing a partner in digital transformation (DX). System replacements and integrations are not just "replacements"; It's the process of redefining the way companies work and how they relate to their customers.

By acquiring a partner named GMO-PG, JR West Japan not only achieved complex system integration, but also solidified its security defenses and set out to create a future customer experience that would be "payment without payment awareness."

"It is natural for a product to be good, but what is important is whether or not they will face the issue and think about it together." --I think this phrase of Mr. Higuchi will be a hint for all business leaders who are surviving in uncertain times.

The transformation of the new payment experience (PX) that started in the west of Japan has only just begun.

■ Services and solutions introduced by JR West Japan

In addition to the batch deployment of various payment method, the project employs advanced security measures.

• PG Multi-Payment Service
• A comprehensive payment service that allows you to deploy and manage all payment method in one place, including Credit card payment, code payment such as PayPay and d Payment, and career payment. Adopted as a foundation to integrate the payment of the JR West Japan Group's diverse services.
• Mass Attack Blocking Service
• A security solution that instantly blocks the mechanical mass access of credit master attacks and protects the transactions of genuine users.

If you are looking for a partner to build your payment infrastructure or digital strategy, contact GMO-PG. Accelerate your business with industry-leading knowledge and proposing capabilities.