VeriTrans and Nissen to Establish a JV in the Postpaid Shopping Business
Accelerating Postpaid Shopping Business Developments with Both Business Synergy
VeriTrans Inc. (HQ: Tokyo; Representative Director and President: Hiroshi Shino; VeriTrans), a subsidiary of Digital Garage, Inc. (TSE first section: 4819; HQ: Tokyo; Representative Director, President Executive Officer and Group CEO: Kaoru Hayashi; DG) in the payment business, and Nissen Co., Ltd. (HQ: Kyoto; President and Representative Director: Jun Habuchi; Nissen), a subsidiary of Nissen Holdings Co., Ltd. (HQ: Kyoto; President and Representative Director: Tamaki Wakita) in the comprehensive telecommunications sales business, have concluded a joint-venture agreement to found SCORE Co., Ltd., a new company to promote the postpaid shopping business. The new company will be established in September, 2018, and services will be launched in October.
■ Background to establishing the joint-venture company
With postpaid shopping, customers can pay for products they ordered via EC, mail-order shopping, and other methods after receipt. Due to the Japanese EC market’s growth in recent years, this market is expected to keep growing based on consumer concern about credit card security and product receipt issues.
Nissen, one of Japan’s most prominent comprehensive telecommunications sales businesses, created its own postpaid mail-order shopping service called “@Barai” in response to requests from many customers. In addition to usage for Nissen’s mail-order shopping business, it has built a customer platform by providing this service to other EC and mail-order shopping business operators.
VeriTrans and the DG Group have customers of various sizes and industries, as well as extensive payment business expertise and development structures, in the online payment business started in the second half of the 1990s (at the dawn of the EC era).
Leveraging the strengths of both companies to establish a joint-venture company specialized in postpaid shopping will accelerate developments in the postpaid shopping business. Offering this service as a standard will enhance the comprehensive payment services of VeriTrans and econtext (a DG Group company), with the aim of increasing sales to both companies’ existing customers and acquiring new customers.
■ Future developments
Going forward, in addition to postpaid shopping services for traditional EC and mail-order shopping business operators, the companies will also consider services for the face-to-face payment market, which is expected to grow based on the promotion of cashless payment by the Japanese government.
The two companies will combine their payment business knowledge, technologies, and other strengths with the aim of developing Fintech services incorporating new marketing elements, such as credit monitoring, scoring, and purchasing promotion.
■ Outline of the new company
|Name||SCORE Co., Ltd.|
|Representative||President and Representative Director Hikaru Kitahara|
|Location||26 Nishikujoin-machi, Minami-ku, Kyoto-shi, Kyoto|
|Starting the operation||October, 2018|
|Stock capitalization||100 million yen|
|Capital contribution ratio||Nissen Co., Ltd. 51%; VeriTrans Inc. 49%|
|Services||・Postpaid shopping payment business
・Various types of financial businesses utilizing payment data
【About VeriTrans】 https://www.veritrans.co.jp/
A payment provider that carries out online payment initiatives for the Digital Garage Group. Recently VeriTrans has also provided face-to-face payment services, including barcode payments and POS payment solutions. The DG Group is one of Japan’s largest online payment providers. As a leader in basic social infrastructure, VeriTrans will work with DG Group member econtext to offer advice to government institutions and the credit card industry, along with speedy service that meets the needs generated by trends in business and policy. Such efforts will support the expansion of convenient solutions, along with a safe and secure environment, as required by businesses and consumers, and also contribute to creating a cashless society.
【About Nissen】 http://info.nissen.co.jp/
Nissen sells interior goods and other products, with a focus on women’s clothing, via its catalog mail-order sales and online sales. Its online shopping website (https://www.nissen.co.jp/) offers many products in a wide range of sizes, including fashion, innerwear, interior goods, and beauty products. Nissen uses its mail-order shopping expertise and infrastructure cultivated over many years to offer companies business support and BtoB services leveraging its mail-order shopping know-how, including promotion, telemarketing, and distribution support.