Smartpay, a trailblazer in the Japanese FinTech sector, has successfully completed a $7m Pre-Series A funding round, led by SMBCVC and Angel Bridge VC, drawing significant attention from both Japanese and international investors.
The company is at the forefront of digital embedded finance in Japan, being the first in the country to offer no interest, no late fees, and free of charge installments at the point of purchase. It’s revolutionising the way Japanese consumers shop online, offering a seamless checkout process that completes in under 10 seconds without the need for physical store visits for installment payments.
With the introduction of “Smartpay Bank Direct,” Smartpay has filled a significant gap in the Japanese market, catering to the 70% of consumers who prefer bank account payments over credit cards. This service, a first of its kind in Japan, enables direct bank account payments for online purchases, providing a convenient and secure alternative to credit card payments.
The funds from this latest investment round will be channeled into further innovation and expansion of Smartpay’s services. This includes the launch of fully digital in-store payments with free automated installments, aimed at simplifying the payment process for consumers and reducing fraud risk for merchants. The initiative will make Smartpay accessible to an even larger audience, with the goal of reaching 2 million consumers and 30,000 merchants within the next few years.
Smartpay is not just enhancing the consumer payment experience but also supporting Japanese merchants in growing their ecommerce revenue. Merchants integrating Smartpay have seen a significant increase in average order values and a reduction in cart abandonment rates. The company’s efforts in simplifying the checkout process and providing free digital finance options at the point of purchase have addressed critical pain points for both consumers and merchants.
Jun Morita, Manager, Customer Success Div., Innovation Group at Onward Group, highlighted the positive impact of Smartpay on their E-Commerce site, Onward Closet. “In mid-December of last year, we introduced Smartpay to Onward Closet, the official E-Commerce site of the Onward Group, in order to provide a variety of payment methods and improve customer satisfaction.
“The timing of the introduction coincided with SmartWeek (Smartpay cash-back campaign), and many customers immediately took advantage of Smartpay. The average order value per customer during the month of introduction was more than 1.5 times higher than other payment methods, and we feel that we were able to fulfill our customers’ desire to buy today.”
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