NFC-enabled mobile card payment system and authentication services provider Hankook NFC has secured a total investment of KRW 5.5 billion. The latest investment of KRW 3 billion was made by Japan’s MJS.
The deal marks MJS as Hankook NFC’s first international investor. Domestic investors include KDB Capital and L&S Venture Capital.
“Apple Pay is very popular in Japan, but NFC readers are not widely available except at the subway and some convenience stores,” said Hwang Seung-ik, CEO of Hankook NFC. “With our service, merchants will be able to accept payments with Apple Pay, credit cards, and digital money payments by simply installing the payment app,” he added. He further said that this could revolutionize the Japanese payment market.
MJS or Miroku Jyoho Service develops and sells Japanese financial accounting systems and management information service softwares. MJS Finance & Technology, a subsidiary, has also been set up for fintech ventures and is listed on the Tokyo Stock Exchange.
MJS will utilize the patented technology of Hankook NFC to supervise the services and businesses of the phone-to-phone settlement service in Japan.
In the Japanese market, the credit card payment rate is very low at only 17 percent.
Due to high credit card commission fees, small-sized shops generally do not accept credit card payments. This lack of credit card infrastructure is especially inconvenient for foreign tourists. With the upcoming Tokyo Olympics in 2020, the Japanese government and credit card companies are making aggressive efforts to rejuvenate the industry.
Hankook NFC also plans to provide technology and service development in future. This will allow small-sized business owners or self-employed people to accept Apple Pay with their smartphones without the need for a separate POS or NFC dongle.
This article, entitled “Japan’s MJS invests KRW 3 Billion in Hankook’s NFC”,was written in Korean by Platum, edited by AllTechAsia.