February 9, 2007

First Tax Payments by Credit Card in Japan Made Possible by GMO Payment Gateway Payment Processing ASP Service

  • GMO Payment Gateway

Tokyo – February 9, 2007 -- GMO Payment Gateway (GMO-PG), the GMO Internet Group remote credit card payment processing company, will provide an ASP payment processing service aimed at municipal governments to Fujisawa City beginning May 2007. Fujisawa City has agreed to employ the GMO Internet Group to handle data related to credit card payments of automobile tax.

Background
In the current remote credit card payment processing market environment consumers are seeking flexible payment options and the government is promoting strategic IT restructuring. We are attempting not only to expand our business in the retail industry but also to develop what has become known as the C-to-G sector and includes public utilities such as electricity, gas and public television license fees. 
Fujisawa City tested a system in May last year that allowed automobile tax to be paid by credit card via any computer connected to the Internet. The service was available 24 hours a day, including public holidays. In a survey of test users 94% of those who paid by credit card were satisfied with the service and almost all of those surveyed hoped to use the service again. The payment option received positive feedback and 40% of citizens who had not used the service expressing the desire to do so in the future. During the test period a large number of payments were made on weekends or late in the evening when banks were closed and this demonstrates a significantly more convenient service for users. 
Based on these results, Fujisawa city has decided to permanently implement the service in May this year and has agreed to employ the GMO-PG public sector payment processing service to handle relevant data including applications, claims and inquiries. 
 
GMO Payment Gateway Public Sector Credit Card Payment Processing Service
The service is provided as an ASP service, it centralizes tasks including credit card validity check, sales claims and updating of card information and can be implemented in a short period of time. The service also offers an online application function secured by 3-D secure certificate.
Residents will benefit from the convenience of using the credit card they already have, paying from home and being able to pay even when they work late or on weekends. Users can also earn points from their credit card company reward program.
 All GMO-PG offices have received the ISMS Certification Standards Ver. 2.0 certificate of compliance. These are global independent certification standards for information security management. Our customers can rest assured that our operational structure adheres to fundamental ISMS goals; the maintenance and improvement of the confidentiality, integrity and availability of information assets.
 
Outlook
Private final consumption spending in Japan is currently at around ¥287 trillion a year*. Of that figure, the amount accounted for by credit card payments is no more than ¥29 trillion. Payments in the public sector, which is yet to introduce a credit card payment option, are estimated to be worth between ¥20 trillion and ¥50 trillion. We expect the introduction of credit card payment in this field to further expand the credit card market, improve efficiency in the public sector and be more convenient for the user.
 
GMO-PG is continuing to develop the market for utilities and other public sector payments. In 2006 we provided credit card payment processing services for NHK (Japan Broadcasting Corporation) license fees, for public housing rental payments and meal delivery services. On February 5 this year the Tokyo Bureau of Waterworks also agreed to employ our services as part to accept water utilities payments by credit card. These activities are in line with our objective of providing services to local governments all over Japan. GMO-PG continues striving to promote our credit card payment processing services for monthly housekeeping-related payments in addition to our online payment processing service.
*National Accounts in the 2005 fiscal year

GMO Payment Gateway Inc.
GMO-PG provides credit card payment processing services for recurring payments such as CATV and NHK fees as well as remote payments such as online stores. It is a completely safe and highly convenient service for both business and consumer. We aim to provide the payment processing infrastructure for Japan.
Media Inquiries
GMO Payment Gateway Inc. Corporate Planning Office
GMO Internet Inc. Group PR Team
 
The GMO Internet Group
The GMO Internet Group is a leading force in the Internet industry offering one of the most comprehensive ranges of Internet services in Japan. We provide web hosting, e-commerce tools, domain registration, Internet advertising, online securities trading and a host of other services to over 22 million individual and 550 000 corporate customers. Striving to redefine the industry and foster a vibrant Internet culture, the GMO Internet Group is continuously working to inspire enthusiasm in our customers and put smiles on their faces.
 
GMO Payment Gateway Inc.
Company Name
GMO Payment Gateway Inc. http://www.gmo-pg.com/
(TSE Mothers Market Code: 3769)
Address
Shibuya Square A, 1-9-5 Dogenzaka, Shibuya ku, Tokyo, JAPAN
CEO
Issei Ainoura
Business Description
■Credit Card Payment Processing service and related services.
Capital
¥649,490,000
 
GMO Internet Inc.
Company Name
GMO Internet Inc. http://www.gmo.jp/en
(TSE First Section Code: 9449)
Address
Cerulean Tower, 26-1 Sakuragaokacho, Shibuya ku, Tokyo, JAPAN
CEO
Masatoshi Kumagai
Business Description
■Internet Use Support (Infrastructure)
■Internet Advertising Support (Media)
■Internet Finance
Capital
¥7,148,290,000
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