May 25, 2007
- GMO Payment Gateway
May 25, 2007
Press Release
GMO Payment Gateway Inc.
GMO Payment Gateway and Donkicom to Jointly Develop Ecosec GMOPG Payment Processing Plan
Tokyo - May 25, 2007 -- GMO Internet Group remote credit card payment processing business, GMO Payment Gateway (GMO-PG) has joined in a partnership with donkicom Co. Ltd a member of the major retail distribution group, Don Quijote Co. Ltd. The two companies have agreed to jointly develop and launch an online store management service to be called the “ecosec GMOPG Payment Processing Plan”. The plan takes advantage of the two companies strengths, the scale of their infrastructure and their expertise to provide all the services necessary to operate a store including product purchasing, storage and delivery, payment processing and debt collection. This is a service that will significantly reduce operating expenses for online store operators.
ecosec GMOPG Payment Processing Service
The online store management service ecosec GMOPG Payment Processing Plan handles almost all the behind-the-scenes tasks necessary to operate an online store from product purchasing, storage, packing and delivery to payment processing and debt collection. This service combines purchasing storage and delivery functions of the donkicom comprehensive e-commerce service, ecosec with the large-scale infrastructure and extensive knowledge behind the GMO-PG credit card payment processing services. Set up costs are around one tenth* of that of existing fees and while the majority of online store management services charge a fixed rate we have established a pricing structure under which the fee paid by the customer is determined by sales.
The service allows our customers to focus on attracting new customers, taking care of existing customers and other tasks essential to growing sales while we handle the complex behind-the-scenes operations like product management and delivery. The initial investment requires to set up an online store is low and our pricing structure reduces operation expenses making it possible to operate an online store with minimal risk.
The ecosec GMOPG Payment Processing Plan will also be offered to ASP service providers in the future.
* If GMO-PG services and donkicom service were employed separately the total cost of set up would be ￥586,000. In comparison, ecosec GMOPG payment processing plan set up fees are ￥59,800.
Implementing the ecosec GMOPG Payment Processing Plan
ecosec GMOPG Payment Processing Plan Management Services
1. Product purchasing, storage, order picking, wrapping and delivery
The management service is a complete support service that handles everything from stock purchase to delivery for those looking to outsource tasks like delivery and storage.
Take advantage of the purchasing power of Don Quijote, a group that operates over 100 stores throughout Japan for low prices that reduce costs.
Online store operators can dedicate their time to selling without the burden of inventory holding risks or labor costs.
2. Payment processing and debt collection
Take advantage of GMO-PG merchant acquisition services and credit card payment processing services. We handle the merchant sales contract with the credit card company, online credit card payment processing and receiving payments from the credit card company.
Introduction of the ecosec GMOPG Payment Processing Plan
ecosec GMOPG Payment Processing Plan Management Services
Set-up fee (inc. tax) | ￥59,800 |
Basic Monthly Fees (inc. tax) | ￥27,800 |
Sales Commission | 2% - 7.5% (depending on the price of the item) |
Credit Card Payment Processing Commission | 3.5% of sales amount |
Other Fees | Delivery fees, credit commission, cash on delivery fees, warehouse charges and other fees apply. |
Background to the Partnership
In recent years ASP services that provide customers with easy set up of shopping malls and online stores have been rapidly growing. Prices are falling and in some cases are now free and so there are now many online stores in existence. However, there are only a handful of online stores whose monthly sales exceed one million yen a month. The reason for this is an invisible wall or an underlying burden. After establishing a store in a shopping mall or other online store the operator must bear the responsibility of duties including stock purchasing, storage, picking and wrapping, delivery, payment processing and debt collection as well as the associated expenses charged at a fixed rate. Many online stores in Japan are stuck behind an invisible wall and unable to grow sales beyond a certain point.
Not only are the costs of establishing an online store falling but nowadays search media advertising, affiliate advertising and other forms of advertising with results based fee structures are becoming more popular and in the online store environment there is a major shift away from fixed charges for advertising. There is now demand for net shop management services also to move away from fixed fees.
The ecosec GMOPG Payment Processing Plan not only offers centralized handling of purchasing, inventory, delivery, payment processing, debt recovery and all the operations necessary to leave the operator free for promotion and customer service, it also offers low set up costs and operation fees charged on a variable basis. We aim to remove the factors that restrict online store growth opportunity.
GMO Payment Gateway Inc.
GMO-PG provides remote credit card payment processing services to businesses such as online stores, recurring payment processing to clients including CATV and NHK Broadcasting other credit card payment processing services to clients including to municipal governments such as Fujisawa city in Kanagawa prefecture.
Over the past year in addition to credit card payment processing we have been focused on further developing convenience store payment processing and electronic money related services.
Media Inquiries
GMO Payment Gateway Inc. Corporate Planning Office
E-mail: [email protected]
GMO Internet Inc. Group PR Team
E-mail: [email protected]
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 hold top domestic market shares in the domain registration, web hosting and payment processing industries and we provide a host of other services including e-commerce solutions, Internet advertising and online securities trading to individual and 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 | ￥655,240,000 |
Company Name | donkicom Co. Ltd. http://www.donkicom.com/ |
Address | 4-14-1 Kita Kasai, Edogawa ku, Tokyo, JAPAN |
CEO | Kouji Ohara |
Business Description | ■Comprehensive Internet-related services ■Operations outsourced by Don Quijote ■Provision of services and operations planning in the online shopping market |
Capital | ￥450,113,000 |
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 |