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Japanese fintech leader SmartPay has secured $7 million in a pre-Series A funding round, oversubscribed and led by SMBC Venture Capital. Other participants in the round include Japanese venture capital firm Angel Bridge, European venture capital firm Global Founders Capital, and American venture capital firm Matrix Partners.
Smartpay, one of the leading fintech startups in Japan, offers innovative payment solutions, including no-interest, no-late-fee installments at the point of sale, providing Japanese consumers with convenient digital financing options.
The launch of “Smartpay Bank Direct,” a digital financing service allowing customers to pay for online purchases directly from their bank accounts, has addressed the preferences of Japanese consumers who opt not to use credit cards, contributing to a seamless and secure payment experience.
SmartPay has recently introduced Japan’s fully digital in-store payment system, featuring free automated installments. The company has developed technology enabling merchants to set up their payment system for in-store purchases with installments in just 30 seconds, eliminating integration costs. The company aims to expand its consumer base to 2 million within two years and onboard 30,000 merchants within three years.
CEO and Founder Sam Pemberton Ahmed emphasized Japan’s economic stature, showing its position as the world’s fourth-largest economy. He noted that Japan’s financial resilience, coupled with the impact of COVID-19 on consumer behavior and the government’s initiatives to drive digital transformation, presents a unique opportunity for Smartpay to contribute to Japan’s digital renaissance.
Smartpay’s innovative services, such as its fee-free installment payment options and the newly launched “Smartpay Bank Direct,” have been well-received by Japanese consumers, offering them a seamless and secure payment experience. It aligns with the preferences of most Japanese consumers who prefer not to use credit cards, providing them with convenient digital financing and installment options for online purchases.
This initiative has impacted e-commerce in Japan, with Smartpay users experiencing a 40% increase in average order value compared to non-Smartpay users.
Japanese online merchants, facing high cart abandonment rates, have benefited from Smartpay’s customer-focused checkout process. This process has improved conversion rates, addressed concerns about data security, and provided free digital finance options at the point of purchase.
Moreover, Smartpay assumes all fraud risks for merchants, streamlining the integration process with its fast and efficient SDKs and APIs and offering free e-commerce training to enhance website conversions and attract new customers for businesses.
SMBC Venture Capital, one of Japan’s most well-known technology investors, has expressed satisfaction with its continued investment in Smartpay. The firm commended CEO Sam and the Smartpay team for their relentless efforts in enhancing the service, noting that their hard work has already yielded positive results.
Despite its relatively short time in operation, Smartpay has garnered praise from both businesses, including major corporations and consumers, with its rapid growth trajectory particularly noteworthy.
Junya Yasuda, General Manager at SMBC Venture Capital, talked about the potential for Smartpay to become an essential infrastructure service across various consumption sectors in Japan, extending beyond online transactions. He highlighted the company’s impressive growth and expressed optimism about its future trajectory.
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