Smartpay
Secure Click

In the midst of an epoch defined by intangible transactions and the rise of a cashless economy, Japan stands out with its unwavering preference for cash-based financial transactions. Despite the widespread adoption of digital payment systems that are reshaping global financial ecosystems, this scenario persists. As a result, Japan's burgeoning market stands at a crucial crossroads, compelled to create a comprehensive ecosystem that meets the evolving needs of its consumers.

Amidst this unique backdrop, a pioneer has emerged, undeterred by the challenges at hand.

Smartpay, a renowned player in Japan's fintech industry, charts a path towards the next phase of digital consumer finance. Recognising the boundless potential of open banking, the company understands the significance of delivering a seamless user experience (UX) as a fundamental requirement for bank account holders who are yet to fully embrace the transition from cash-based payments.

"We are driven by the mission to transform the complex world of finance into a simple and stress-free process, empowering individuals to manage their finances and make payments with ease," states Sam Ahmed, CEO and co-founder of Smartpay.

Streamlined Direct Debit with Bank Direct

At the heart of Smartpay's transformative approach lays the advent of Smartpay Bank Direct. This groundbreaking service marks Japan's inaugural deferred-payment digital financing at the point of purchase, epitomising scalability and commercial sustainability. This innovative offering enables consumers to pay for online purchases directly from their bank accounts. It also allows users to divide payments into three interestfree installments, alleviating financial burdens and rendering significant purchases more manageable.

However, the firm’s solution transcends the facilitation of payment transactions. It provides a secure platform where users can register and safeguard their personal information, credit cards, bank accounts, Google Pay, Apple Pay and eradicates the specter of hidden fees while minimising security apprehensions. This strategic approach ensures a hassle-free registration process, as well as guaranteeing a seamless and stress-free user experience for customers and merchants. Smartpay’s distinctive value proposition lies in its exclusive offering.
"We stand as the sole payment provider in Japan that empowers consumers to pay directly from their bank accounts to the merchant," says Ahmed.

This technological prowess gives merchant’s unparalleled access to a substantial pool of consumers driven by a predilection for cash, constituting a pivotal advantage within Japan's consumer market. Smartpay's user-friendly digital payment system has rapidly garnered popularity among both consumers and merchants, effectively reshaping the digital payment landscape in Japan.

Enhanced Security: Smartpay's One-Click Payment Solution

Underpinning Smartpay's innovative approach is a guiding philosophy succinctly encapsulated in its mantra, "Our fashion is technology, but our magic is UX."

The company acknowledges the inherent challenge of harmonising swiftness and safety within the rapidly evolving fintech and payment sectors. Due to its unwavering resolve, Smartpay attempts to reconcile these seemingly disparate priorities to deliver a prompt and secure experience to all stakeholders, whether they are consumers, merchants, government entities, or banks. This balanced approach extends to the firm's commitment to managing fraud and credit risks on behalf of its merchants, serving as a crucial lifeline for businesses that are ill-equipped to independently navigate such risks.

In the realm of digital payments, security is not merely an embellishment; it is an elemental expectation. Smartpay recognised this and has pushed the boundaries of secure transactions with its one-click payment solution. In a revolutionary move, Smartpay was the first digital financing solution in Japan to secure the license to directly utilise open API banking with consumers' bank accounts. That means customers are no longer constrained by the need for a credit or debit card and can complete their transactions using Smartpay's one-click payment process. This novel system incorporates two biometric authorisation prompts to fortify security—a feature enthusiastically endorsed by regulatory authorities. The firm has witnessed a notable surge in consumer trust and user adoption, reinforcing the company's unwavering commitment to prioritise security in its suite of solutions.

However, its contribution to Japan's financial ecosystem extends beyond enhancing consumer experiences with zero fees for the consumer. It also creates value for banks and merchants. Its payment system incentivises banks to encourage their customers to utilize the platform for transactions. Each transaction conducted through Smartpay yields a fee for the bank, establishing an additional revenue stream that bolsters the bank's profitability.

The company also supports its merchants and platform partners by furnishing them with high-quality documentation, plugins and software development kits (SDKs) in various preferred programming languages. This support and dedication to excel have proven instrumental in propelling Smartpay's growth, with the company experiencing over 150 percent expansion and successful merchant acquisition.

High Abandoned Shopping Cart Rates in Japan

Japan's e-commerce landscape presents a challenging predicament; an alarmingly high rate of shopping cart abandonment. As much as 89 percent of customers do not follow through on a purchase after adding products to their cart—a number that far surpasses the global average. This challenge is compounded by cumbersome checkout processes on e-commerce websites, which often consume more time than the shopping experience itself.

Smartpay has embraced a strategic approach to confront this issue. By streamlining payment processes and offering an extensive array of options, its deferred payment service endeavors to mitigate the predicaments faced by e-commerce businesses. It diversifies payment methods, empowering merchants to attract customers with higher spending capacity, stimulate repeat orders, and enhance conversion rates on their websites.

Powering Payment Solutions with Strategic Partnerships

In this digitalisation era, banks must innovate to maintain their relevance.

However, entrenched legacy systems often pose formidable obstacles. This transformation extends over several years, compelling these institutions to seek partners capable of expediting digital monetisation. Smartpay assumes a pivotal role in this domain by offering to facilitate the digital transformation process.

“We stand as the sole payment provider in Japan that empowers consumers to pay directly from their bank accounts to the merchant”

One of Smartpay's noteworthy allies is SMBC Bank, its primary investor. SMBC Bank's faith in the company’s capabilities has enabled it to establish collaborations for direct debit processing with 73 banks in Japan. These partnerships were forged through Smartpay's meticulous understanding of the banks' needs and objectives and its ability to offer immediate solutions.

Smartpay's collaborations extend to other prominent entities, including Shopify. The company ensures seamless integration for merchants and fosters greater access to the Japanese market for both entities. Other platform partners within Japan include Adyen and Stripe, two processing collaborators who value Smartpay's adept regulatory management and technological systems.

Allying with the Japan Merchant Association offers invaluable insights into merchant challenges and areas of concern. This partnership has acquired heightened significance amid the shift from traditional retail to e-commerce platforms, catalysed by the pandemic, compelling Smartpay to develop innovative solutions tailored for these evolving merchant needs.

Armed with over a century's worth of collective fintech industry experience, Smartpay stands poised to cater to the requirements of middle- and high-income consumers seeking secure, hassle-free cash flow management and payment processes. The direct debit service offered through Smartpay Bank Direct significantly contributes to steering Japan from an economy dependent on cash toward a digital realm.

A commitment to providing a user experience, aligned with the inherent value of its product is evident in the average transactional order value, which stands at 276USD—three times the global average. This unwavering dedication, coupled with other contributing factors, has propelled Smartpay to emerge as one of Asia's fastest-growing fintech companies.