Japanese fintech firm Smartpay has successfully raised $7 million in a highly oversubscribed pre-Series A funding round, signaling robust investor confidence in Japan’s burgeoning technology sector.
This development underscores the country’s position as the world’s fourth-largest economy, increasingly attractive to both local and international investors.
Smartpay is pioneering in the digital embedded finance space in Japan, offering unique no-interest, fee-free installment payment options at the point of purchase.
This innovative service, a first in Japan, allows consumers to complete transactions in less than 10 seconds without the need to visit convenience stores for installment payments or to carry cash on delivery.
Additionally, Smartpay minimizes the anxiety associated with sharing financial details with unfamiliar merchants.
The company recently launched “Smartpay Bank Direct,” Japan’s only digital financing service enabling direct bank account debits for online purchases.
This caters to the 70% of Japanese consumers who prefer not to use credit cards, providing a seamless and secure payment alternative.
Smartpay has integrated with Japan’s 19 largest banks and over 200 credit unions, making it accessible to 90% of the population with bank accounts.
This extensive collaboration was facilitated by the Japan Electronic Payments Promotion Organization (JEPPO).
The impact of Smartpay on e-commerce is significant, increasing the average order value by 40% compared to non-Smartpay users.
This boost comes as Japanese online merchants face one of the highest cart abandonment rates globally, with Smartpay dramatically improving conversion rates through a customer-focused checkout process.
This week, Smartpay also rolled out a fully digital in-store payment system, the first in Japan to offer automated installments without integration costs.
Merchants can set up the service in just 30 seconds via Smartpay’s new QR code or NFC touch technology, enhancing the shopping experience and reducing fraud risks.
The financing round drew participation from major Japanese, European, and American investors with extensive fintech experience, including SMBC Venture Capital and international firms like Global Founders Capital and Matrix Partners.
PEVCJournal.com